CONTRACT DISPUTES

Home improvement and construction projects are a huge undertaking for both the property owner and the contractor. Whether the project calls for a simple kitchen or bath remodeling, building an addition or even new construction, there are certain inevitable hurdles that will come up during the project regardless of how carefully planned and managed the project is. First, there will be delays. Second, the project will end up costing more than expected. Third, there will be changes to the project. Finally, the end result will be something less than the owner was expecting. These are simple truths that come up in every construction project.

Planning for these unexpected contigencies at the outset will go a long way toward avoiding disputes and hard feelings later on. Fortunately, the law in Virginia is straight forward - everybody is entitled to get exactly what they bargained for. The parties to a contract have to live by whatever is written into the contract and have no right to expect anything that is not written into the contract. Because of this, parties entering into any home improvement or construction project should prepare a clear, unambiguous contract written in plain English that sets forth what each party expects from the other. If specific construction terminology is used, all parties should understand what the terms mean.

Deadlines should be specified and the parties should include language that explains what will happen if deadlines are not met. The contract should also explain how changes will be handled, including how much extra, if any, will be charged for changes. The contract should also specify how and when payment is required. Finally, the contract should be very clear on when the project is over. It should set forth the conditions for final approval by the property owner and specify when final payment is due.

Virginia law is also very clear on when a party is permitted to cancel or terminate a contract. If one party fails to perform or materially breaches the contract, the other party is relieved of any obligation to complete their end of the contract. Property owners should be warned that if they fail to pay the contractor, the contractor is entitled to take a lien against the property for the cost of labor and materials. Contractors should be warned that if they fail to perform and the property owner has to hire a replacement to finish the project, the contractor will have to pay the difference in the price.

With a little planning and an understanding that problems will likely come up no matter how careful the parties are, disputes and litigation can be avoided. However, if disputes arise, you can take comfort in knowing that the law is very clear and unambiguous as to what your rights and obligations are.

The attorneys of Rutter Mills are dedicated to protecting the legal rights of our clients. If you have disputes with a contractor or property owner over a construction project, and want to find out additional information and how we can help you, click here.