Construction Law

Construction contracts form the backbone of any large construction project in Irvine. It is through construction projects that our state’s infrastructure is maintained and improved, adding to our state’s economy and quality of life. Construction contracts also provide the framework for the scope of the project, which property owners, contractors and subcontractors may find valuable. There are four common types of construction contracts. Type one: lump sum or fixed price contracts A lump sum or fixed price contract lays out the total cost for the entire construction project. This includes incentives for earlier completion or penalties for late completion. A lump sum contract is a good choice for situations where the parties have a clear idea on the scope of the project and have worked out a schedule that they both agree to. Type two: cost plus contracts Cost plus contracts cover the actual payment of costs and expenses derived from the construction project itself. These contracts contain specific terms laying out a percentage of material and labor costs as well as profit. These costs may be direct or indirect. A cost plus contract is a good choice when the scope of the project is outlined but not completed and

Almost everyone in California’s construction industry is familiar with the idea that they can be held liable for defects in their work. This can be true for architects and designers, as well as contractors and subcontractors, surveyors and others involved in the construction. Unfortunately, it’s less clear how long this liability can last. The statute of limitations for construction defects is complicated. A legal deadline A statute of limitations presents a kind of legal deadline. For instance, in a personal injury lawsuit arising from a car accident, the statute of limitations in California generally gives the injured party two years to make a claim. This means the injured party will likely be barred from filing suit against the other party unless they do so within two years of the accident. Most types of civil claims have a statute that imposes a time limit, but some provide more time than others. For some claims, the clock starts ticking on the day a problem begins, such as the day of a car accident. For other claims, the clock starts ticking the day the injured party learns about the problem. Patent and latent defects Under California’s construction defect laws, the statute of limitations

All parties involved in a construction project are legally required to use reasonable care when performing work. However, contractors are not the only ones with this legal obligation. The following parties on a project also owe a duty of reasonable care: Architects Engineers Project Managers Accountants Financial advisors Attorneys Proving professional negligence Professional negligence occurs when a professional on a construction project breaches the duty of care owed to a client or a third party, causing them to sustain damages. Damages to the property often are caused by design, material, and workmanship defects, which result in construction defects. Negligence may also result in delays or failure to complete a project, which could result in financial losses. Some examples of professional negligence in the construction industry include: Failing to follow building codes Failing to adhere to project specifications Failing to properly value a property Building a defective foundation Failing to obtain permits Misrepresenting the quality of work Failing to design a safe structure Failing to inform client of changes in tax laws Failing to use proper materials Providing inaccurate information regarding construction site Failing to provide adequate legal services The specifics of the duty owed to the client will depend on

Construction projects in Southern California can be large-scale events that take time and many participants to complete. When a construction project hits a snag, however, the completion of the project can be threatened and the contracts that bind the parties together may be called into question. This post will identify some forms of construction defects that appear in California projects, but readers should remember that this post is not offered as legal advice. When questions regarding construction defects arise, individuals can reach out to their trusted construction litigation attorneys for advice and support. Recognizing construction defects There are several categories of defects that may appear in construction projects. Those categories include: Design defects: Defects that prevent projects from being up to code or meeting the specifications of the project. Subsurface defects: Defects with the ground the project is built on that threaten its stability. Construction or building defects: Defects related to the quality or care of workmanship provided in the building of the project. Material defects: Defects that present in the materials and supplies used to build a construction project. When a construction defect is found, it can create problems for every party related to the project. Support from knowledgeable

In the construction business, everyone from the general contractors and subs to the suppliers, engineers and architects are responsible for complying with agreed upon specifications for the project, as well as all local and state building codes. In California, when there are alleged construction defects, it is essential for both contractors and design professionals to know the laws that will protect them from being sued without have a chance to correct the defect, as well as the statutes of limitations for pursuing a claim. Having legal counsel that is experienced in the defense of construction defect claims in Irvine and southern California can help you to know your options. The Right to Repair Act Under the statute enacted by the California legislature in 2003, S.B. 800 or the Right to Repair Act, homeowners of newly constructed homes have the right to sue specifically for economic damages, and within the statute of limitations, if there are proven construction defects that are below the standards as described in the Act. The purpose of the law was to allow homeowners the option to pursue a non-litigated resolution of defect claims. Under the provisions of the law, the homeowner must first file a pre-litigation

Construction companies are often hired by property owners or developers to build new buildings, perform renovations, and repair damaged properties. While it may seem straightforward, there are many disagreements that may arise at various stages of the construction project. When a dispute arises, it can be beneficial to have an attorney specializing in construction law on your side to protect your reputation, as well as your finances. What are some common causes of construction disputes? There are many possible reasons why a dispute may arise among owners, developers, contractors, subcontractors, and other parties involved in the project. Some of the most common reasons include: Contract issues Ambiguities, errors, and omissions in the contract itself can be a source of disagreement. Parties may disagree on what certain terms mean and the scope of work covered by the contract. Breach of contract Even if a contract is well-worded, a party may fail to adhere to the terms of the contract. A breach of contract may stem from: Failure to complete work in a timely fashion or unreasonable delays. Negligent supervision Poor workmanship Defective materials Failure to complete work or abandonment of the project Failure to pay contractors and subcontractors for work performed

There are many different types of construction projects in southern California. There are residential housing projects, small commercial projects, large building projects and many others. While the end goal of each project may be different, there are similarities in the general process of construction projects. They generally start with the design, then foundations are constructed and the outside framing of the building is built. The projects then end with the electrical, plumbing, HVAC and finishing touches inside the structure. There are many different steps along the way and many different contractors involved in the process. It is important that each contractor and subcontractor do their job and do it well. If any one of the contractors makes a mistake, it can affect the many aspects of the project and can create significant problems later on. These construction defects can also be very costly to repair as well. The owner may be able to receive compensation for the defect though depending on the cause of it. Types of liability for construction defects In order to receive compensation, the first step in the process is to determine who caused the defect. Then the owner needs to determine how the contractor is liable.

Getting a construction project off the ground can take a lot of work and cooperation between different parties. In California, a contractor may work with a number of subcontractors to complete quality work in a timely manner to finish the overall project on time. One way that entities working on a construction project can stay on the same page with regard to their duties is through scope of work terms in their construction contracts. Scope of work is an integral concept in construction and will be discussed generally in this post. No part of this post should be read as legal advice. All individuals with questions about construction contracts and project-specific terms should consult with California-based construction law attorneys. What is scope of work? Scope of work refers to the part of a project that a specific entity is responsible to complete. For example, the scope of work that an electrician must complete as a subcontractor on a commercial building project will be very different than the scope of work that a plumbing subcontractor on the same project must do. That is because each has a different expertise and skillset to bring to the construction site. Establishing scope of work