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Work with experienced legal counsel to protect your rights under construction contract

When owners, contractors and subcontractors enter into an agreement to engage in a project, they expect that they will be able to rely on each other party to honor their obligation under the contract. Good construction contracts do, of course, allow for changes in the project timeline and, if necessary, changes in the plan itself. A certain amount of flexibility is important in any construction project.

When one party fails to live up to its obligations under a construction contract, though, the other parties involved in the project can suffer serious economic losses. Take, for example, the case of an Arizona construction company who is currently suing for millions of dollars of damages in connection with a botched project at the Chestnut Street Tower in Philadelphia. 

The Chestnut Street Tower is a 34-story student housing facility near Drexel University and the University of Pennsylvania. The Arizona company, Tutor Perini Building Corp., apparently entered into a subcontract in 2012 with a California curtain wall company to engage in curtain wall work on the Chestnut Street Tower. According to Tutor’s complaint, that project fell through because of the California company’s failure to perform its portion of the work properly, and because the project was eventually abandoned. As a result of the project’s failure, the Tutor claims it lost $5.7 million.

When disputes arise with construction projects, parties should be able to rely on clear contractual terms to resolve disagreements. Construction contracts don’t always adequately address every potential issue that can arise, though. Where possible, disputes should be resolved as quickly as possible out of court. When this isn’t possible, and where a lot of money is involved, it may be necessary for a party to work with an experienced attorney to go to court and protect the party’s rights and economic interests. 

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