Contract disputes can be both manageable and avoidable. A breach of contract lawsuit was filed in Louisiana last month by a subcontractor alleging a breach of contract. As part of an offshore living quarters construction project, the contractor used a fire sprinkler installation company as a subcontractor for the project. According to the contract between the parties, the subcontractor was to provide installation labor and materials for the installation of a fire sprinkler system. The subcontractor alleges that as part of the agreement between the parties, it was to receive monetary incentives for completing the project ahead of schedule.
Under the premium rate, the subcontractor asserts that it submitted three invoices for completed work, totaling $603,764.58. According to the subcontractor, the contractor has refused to pay any of the invoices for the completed work. The subcontractor has brought the breach of contract lawsuit to recover the $603,764.58, as well as damages for attorney’s fees and interest. A breach of contract lawsuit can be a costly and time-consuming disruption to a business. It may also sometimes, unfortunately, also be necessary to get the matter officially resolved.
To help avoid potential contract disputes, it is important to carefully consider and negotiate a comprehensive contract. This can help avoid contract litigation that everyone likely wishes to avoid down the road. If a breach of contract does occur, though, it is important for both parties to respond quickly to preserve important rights. It is important to promptly attend to a breach of contract claim for a variety of reasons, including important timelines and avoidance of a potential default judgment against a party.
A contract dispute can be a manageable aspect of conducting business, however. The proper guidance when negotiating and executing a contract, as well as appropriate contract enforcement, can achieve a positive resolution if a contract dispute arises and get the parties back to the daily concerns of a successful business.
Source: The Louisiana Record, “Alleged non-payment of $600K for work on offshore living quarters spawns lawsuit,” Kyle Barnett, May 7, 2014