Contracts

Insights and articles written by our team

Can a construction delay constitute breach of contract?

Construction projects can be expensive, and those who are depending on a project’s completion and see lost revenues for every day that the project isn’t completed. This is why timeliness in the construction industry is such a big deal. But regardless of your reputation and how hard you work, sometimes things get out of your control. While this may lead to nothing more than an inconvenient delay, in other circumstances it might leave you facing construction litigation. Construction delays and breach of contract A construction delay can be deemed a breach of contract. In some instances, construction contracts have a firm finish date which if not adhered to can result in a breach of contract. But even contracts that don’t specify a completion date can be subjected to a claim of breach if the project isn’t finished in a reasonable amount of time. This might be especially true if you’ve lost communication with the client or you’ve been pulled away from the project for a significant period of time. Defenses to a delay claim If you’re facing a breach of contract claim due to abandonment or delay, then you need to know your defense options. You might have several at

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Contracts form the backbone of construction projects in Irvine

Whether it is the erection of a new home or commercial building, the demolition of a building or the renovation of an existing building, contracts form the backbone of many construction projects in California, setting the rules and tone of the entire project. It is important to ensure that all construction contracts comply with applicable laws and that both sides to the contract understand and agree to its terms. What are some common types of construction contracts? There are many types of construction contracts that may be entered into in any specific project. These include prime contracts, subcontract agreements, purchase orders, scope of work and construction schedules, general and special conditions, drawings and technical specifications, change orders and substitutions and retention agreements and progress payments, among many others. Disputes occur when contracts are not clear It is important that construction contracts are not ambiguous or poorly thought out. An unclear agreement can lead to a construction disputes. While many of these disputes can be settled through mediation or arbitration, sometimes litigation is necessary to resolve a construction dispute. There are always two sides to a dispute, so it is important that you understand your rights and options when it comes

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Contractors who work on homes need to know California’s laws

Many construction contractors in Orange County may work on repairing or improving private residences. Pursuing these opportunities can be a great chance for contractors to earn profits that will help them grow their businesses. However, they need to understand California’s rules regarding home improvement contracts. The rules require clear language and definite terms California’s rules about home improvement construct contracts can be detailed and difficult to apply. If a contractor either has specific questions or needs to have contract language drafted or reviewed, the contractor should consider speaking with an experienced attorney. In general, California’s laws require that all contracts with a value of $500 be in writing and in language that the average person can understand. The contract must cover several topics, including the following. It has to have a definite payment schedule. The maximum down payment allowed is either 10% of the contract’s price or $1,000, whichever is less. It has to include language which explains when and how the customer may cancel or rescind, that is, undo the contract. It will need to explain who will needed any legal permits needed and will also need to specify when the promised work is to be completed. There are

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Basics of a mechanics lien in California

There are many different projects that people need or want to have completed on their properties in California. Some of these projects can be completed by the owners themselves, but some projects are beyond their expertise or they simply do not have the time to complete them. In these situations the people may need to hire various contractors to complete the project. There are also many contractors and they rely on obtaining these various projects in order to build their businesses and earn a living. However, simply getting the jobs and doing the work by itself does not help them earn a living. In order to do this, they must actually be paid for the work that they perform. This does not always happen though and contractors may be forced to go through different methods of forcing customers to pay their bills. One of these methods is filing a mechanics lien. Requirements for mechanic’s liens These are liens that are put on the property where the work was completed and the lien amount is what the contractor is owed. In order to have a valid mechanic’s lien, it must meet certain requirements. The lien must state what is being claimed,

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Contract breach basics

Contracts most often take a lot of time and effort to negotiate. Both California parties to a contract include those provisions which are important to them and must be fulfilled in order to discharge it properly. Contracts are binding, which allows each party to rely on them and begin taking relevant steps to keep their end of the bargain. This is essential in construction law, as contractors and subcontractors rely on each party to follow through on their promises so the project can run smoothly. If one party does not keep its end of the bargain and breaches it, it might be possible to take the breaching party to court. When is a contract breached? Any time a party strays from the conditions and terms agreed to in the contract, it can be considered a breach of the contract. For example, if someone is supposed to be paid by a particular date, then that term has been violated and legal consequences can follow. What happens if a contract is breached? Contracts usually include the legal consequences of violating a contractual provision. If that is the case, then parties must follow the procedure laid out in the agreement. If not, then

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