Select Page

Construction companies in Alabama must be cognizant of the possibility that they will face a lawsuit for a breach of contract. Since people who hire a company to complete a construction project will have certain expectations as to how it will be completed, any issue related to what was in the contract should anything go wrong will be heavily scrutinized. These companies could have their reputation besmirched and face significant professional issues from these claims. Having legal assistance that understands breach of contract is critical.

When an agreement is made and there are obligations the construction company must deliver the customer, the consumer might assert that the finished product did not adhere to the plans and specifications. If it is found in favor of the customer, the doctrine of substantial performance might lead to the builder needing to pay the contract price and subtract how much the property has declined in value because the builder did not adhere to the contract.

When the contract has been breached, the damaged party might seek enforcement of it or to receive financial compensation for what they have lost. If the case cannot be settled, then a lawsuit is likely. There are certain dollar figures that will dictate whether the case will be in small claims court or not. Mediators can hear the contract dispute to try and come to a settlement. With breach of contract, the party claiming to be damaged can ask for damages, specific performance or cancellation and restitution.

Damages can be compensatory, punitive, nominal and liquidated. With specific performance, damages might not be sufficient to cover what was lost and the court will order that the contract be adhered to as it was crafted. Finally, there is the option of canceling the contract and ordering there be restitution to pay for the mistakes the company is alleged to have made. Companies that are on the receiving end of an accusation or a lawsuit that they breached a contract and are dealing with construction litigation should have legal advice from a law firm experienced in construction issues.