There are a number of different ways, depending on the circumstances, that a contract dispute may be resolved. One lawsuit, citing breach of contract, was recently filed in a Louisiana court by a construction company against a subcontractor. In addition to the breach of contract claim, the construction company also alleged poor quality workmanship against the subcontractor.
As part of the lawsuit, the construction company asserted that it entered into an agreement with a Louisiana school board for over $12 million in renovations and additions. According to the contract, work was to be completed within 487 days of the start of work, which was authorized May 23, 2012, or by September 22, 2013.
To complete the work, the construction company engaged a steel subcontractor and a testing services contractor. Subsequently, according to the lawsuit, inspections and surveys revealed the steel columns were not erected according to specifications or according to guidelines set by the American Institute of Steel Construction guidelines. Corrective designs and actions were necessary and the construction company asserts that, as a result, the project was completed 691 days after the completion deadline had passed.
The construction company is seeking damages for the breach of contract, including monetary damages, as well as other types of damages. A breach of contract can lead to costly losses as the non-breaching party may be delayed or incur additional costs associated with the breach. There are methods to help avoid a breach of contract, plan for one and respond to on that contracting parties should be aware of. As a result of the significant impact of a breach of contract, it is always important to be familiar with possible concerns related to breach of contract when drafting a contract and when enforcing a contract.
Source: The Louisiana Record, "Subcontractors face suit over work done on Audubon School," Hoang Tran, Feb. 10, 2016