What to consider before initiating a lawsuit

Perhaps the most important goal to be reached with a construction contract is establishing strong, yet flexible expectations regarding completion deadlines. Having these in mind at the outset can help avoid cost overruns and other minor issues that can give rise to major disputes and consequential damages.

While many may strive for the ideal, resolutions may not be easily reached after a breach. When this happens, construction companies (and the entities who hire them) must make sound business decisions when it comes to filing suit to recover damages. Basically, a lawsuit must make good economic sense before it is filed.

From a legal standpoint, a plaintiff in a construction contract dispute must prove that the defendant failed to perform under the contract, and prove that it is entitled to a certain amount of money (i.e. damages) because of the defendant’s failure to perform.

Suffice it to say, a claim for damages goes hand in hand with proving liability. Failing to prove damages almost makes the liability claim moot because there will be no basis for awarding money to the damaged party.

With that, an experienced attorney will review the contract and analyze the situation to determine the proper measure of damages, considering that the general rule in breach of contract cases is to put the injured party in a place they would have been if not for the offending party’s breach.

The award itself may be subject to debate when part of the measurable damages rests in determining prospective profits that may have been lost because of a breach. If you have questions about how an attorney can help in resolving a construction contract dispute, we invite you to contact us.