The construction business in San Diego can be high-risk due to the many ways a construction defect can occur, derailing the entire project and possibly leading to a breach of contract claim. Some of the most contentious disputes involve termination for cause clauses. It is important to have experienced legal representation to ensure your rights are protected if a construction defect under a termination for cause clause gives you the right to terminate the contract.
Termination for cause
While contract law provides general principles on what the parties to a contract can do should a material default take place, construction contracts are more specific, making an attorney’s representation in the contract negotiation process essential. Construction contracts will specify in detail what events would permit either party to the contract to terminate the relationship. In addition, the construction contract will also establish the procedures that must be followed to terminate the agreement. One example of the effect of a termination for clause provision is as follows. A party that is allegedly in material default may, under the terms of the contract, have to be provided with written notice of default and the chance to remedy the situation to avoid termination of the contract.
Can you lose your contractual rights?
Procedures in the written construction contract can be modified by the actions of either party during the course of the construction project meaning that the contract laws of waiver and estoppel will cause a loss of rights under the contract. This makes it essential to have strong legal representation to assess whether the terms of the contract can be enforced.
Moreover, termination of a construction contract can be tricky because construction projects are complex involving many players with varying relationships. It can be difficult without good legal representation to determine the source of the problem and there can be considerable disagreement about whether the aggrieved party can exercise their right to termination. In addition, experienced attorneys understand that the damages the aggrieved party incurs are magnified the longer a construction project is delayed or stopped altogether. Effective legal representation is essential to finding a means of resolving the issue without stopping the project.
Construction projects can be high-risk
Construction projects in San Diego can be high-risk for property owners and real estate developers. For this reason, it is important to have experienced legal representation both in the development of the construction contract and when the construction contract needs to be enforced. These types of cases can be highly complicated, making strong and effective legal counsel a necessity.