5 Common Types of Commercial Construction Lawsuits

Hundreds or even thousands of individuals, including architects, engineers, contractors, subcontractors, suppliers, and regulatory authorities, are involved in every phase of a commercial construction project. Such extensive collaboration can inevitably bring forth a myriad of legal considerations. From defects in workmanship to contract disputes, the industry is rife with legal pitfalls.

Whether you’re a property owner, contractor, or supplier, knowing the common causes of commercial construction lawsuits can help protect your interests and investments. From delays in timelines to allegations of defective work and breaches of contract, the landscape of construction litigation is multifaceted. Understanding the distinctions of each lawsuit is crucial for anyone involved in the construction process, as it can dictate the course of action necessary to mitigate risks and resolve conflicts efficiently.

In the following sections, FR Law Group will discuss some common types of commercial construction lawsuits in greater detail, providing invaluable knowledge to navigate the industry’s legal challenges. Furthermore, if the worst happens, remember that you deserve quality representation from leading commercial construction litigation attorneys in Phoenix, Arizona. Let FR Law Group review your case and help you take legal action.

Types of Commercial Construction Lawsuits

Construction litigation cases are civil lawsuits in which the plaintiff (complainant) usually pursues financial compensation from the defendant (accused). In certain instances, they may also seek specific performance, such as completing a designated project per the agreement. In others, plaintiffs might pursue foreclosure due to unpaid labor and materials. Regardless of the nature of the construction lawsuit, a methodical commercial construction litigation lawyer has the expertise to provide assistance and guidance throughout the legal process.

1. Commercial Construction Delay Claims

From property owners to subcontractors and suppliers, various parties involved may file delay claims when a construction project exceeds its agreed-upon completion timeline due to factors beyond control. Delays can lead to financial losses or disruptions. Examples of events causing loss-incurring delays include:

Adverse weather conditions affecting outdoor construction activities.
Unforeseen site conditions, such as soil instability.
Changes in project scope or design specifications.
Regulatory approvals or permitting delays.
Supply chain disruptions or material shortages.
Construction company’s negligence or procrastination.
Labor shortages or strikes.
Contractor or subcontractor default.
Design errors or omissions.

Many construction contracts have deadlines for different project phases, often accompanied by penalties for delays. In such cases, seeking legal assistance through construction litigation may be necessary to recover losses suffered due to the delay.

2. Commercial Construction Defect Claims

Construction defect claims result from imperfections or deficiencies in a construction project’s design, materials, or workmanship. These defects can include but are not limited to:

Unfinished or improperly executed construction work.
Employing unskilled contractors, resulting in subpar construction quality.
Poorly poured concrete leading to structural weaknesses or aesthetic flaws.
Incorrect selection, application, or installation of materials, compromising durability or causing aesthetic discrepancies.
Structural defects or dangers that pose risks to occupants, neighboring properties, or the general public.
Electrical or plumbing issues, including faulty wiring and leaky piping systems.
Errors in drywall installation or finishing.

Property owners and commercial entities may file a construction defect claim to seek remedies for damages incurred on account of these defects. Damages could include repair costs, loss of property value, and even injuries (slips and falls on staircases or more complicated cases, such as a balcony collapsing and causing injury to building occupants.

3. Breach of Contract Claims

Breach of contract claims occurs when one party fails to fulfill their obligations as specified in a legally binding agreement. These situations can lead to disputes as the aggrieved party seeks compensation or remedies for the breach. Whether it’s a failure to meet deadlines, deliver materials, or adhere to quality standards, breaches of contract can interrupt business operations and cause financial losses.

Breach of contract claims encompass quality of work and delay issues, like the examples listed above. In addition, they can involve:

Nonpayment to general contractors, subcontractors, or other involved parties.
Incorporating unauthorized work order changes.
Failure to follow design schematics or agreed-upon expectations.
Imposing unjustifiable price hikes during the project’s execution.

Seeking legal recourse through breach of contract claims can help resolve these disagreements and hold the responsible party accountable. From negotiating settlements to pursuing litigation, an experienced attorney can work toward achieving a fair outcome that upholds the integrity of the original agreement.

4. Commercial Construction Lien Foreclosure Actions

Construction lien foreclosure actions are legal steps taken to enforce a mechanic’s lien placed on a property due to unpaid debts for construction work or materials. Contractors or suppliers without compensation for their services or materials usually pursue these actions. They may opt to file a lien against the property to secure their claim.

When efforts to resolve the debt amicably fail, the unpaid party may pursue foreclosure proceedings. Foreclosure actions involve seeking a court order to force the sale of the property to satisfy the outstanding debt. This process may allow the lienholder to recover the amount owed from the property sale proceeds. Construction lien foreclosure actions are complex legal undertakings, requiring adherence to specific statutory procedures and timelines. Seeking the assistance of a knowledgeable attorney well-versed in Phoenix construction law is essential to navigate these proceedings effectively and protect one’s rights and interests.

5. Commercial Construction Lien Exaggeration Claims

Some contractors overexaggerate how much money they are owed when they file a construction lien, which is fraudulent and illegal. This ploy is often used to maximize potential recovery in lien foreclosure actions. Resolving such claims involves conducting thorough investigations, analyzing documentation, and presenting evidence to refute the exaggerated amounts. Property owners facing exaggerated lien claims may seek legal assistance to challenge the validity of the lien and protect their interests in the property.

FR Law Group Has You Covered

Whether you’re seeking legal recourse for a breach of contract or defending against allegations of negligence, knowing your rights and obligations can help you achieve a favorable outcome.

Work with our commercial construction litigation attorneys for assistance in evaluating claims, identifying responsible parties, and pursuing appropriate legal solutions. Contact us today at 602-497-1507 to schedule an appointment.