It is important for construction companies in Pennsylvania to take care when they draft their contracts and to review all proposed contracts with which they are presented. The language in a contract can be used to help companies reduce their risks.
Contract disputes occasionally arise between Pennsylvania businesses. Many companies are able to resolve their disputes through mediation. Some companies may have contracts that call for mediation in the event of a dispute while others elect to mediate their disputes so that they can continue to perform under their contracts.
Most construction projects in Pennsylvania involve substantial investments by both a project owner and contractor. Contracts form the foundation of their relationship. Careful consideration of every detail for the project, including the potential for disagreements between the parties, could prevent costly and time-consuming disputes.
Pennsylvania homeowners who have a construction defect in their home should know that the value of their home may be reduced because of that defect. Examples of obvious construction defects may include water seepage; however, there are several defects that are not as noticeable and may not be noticed until many years after the construction of the home.
In our previous post, we mentioned that the rules governing contract bidding are different for public contracts and private contracts. Specifically, the bidding process on public contracts is governed by greater formality and more rules, among which is the some variation of the rule that a bid must be selected based on the lowest responsible bid.
In construction law, the bidding process is a crucial phase of a construction project, since it is when parties establish the overall cost of the project. For contractors, getting the numbers right is important, not only to ensure the contractor is a competitive bidder, but also to ensure the contractor doesn’t set itself up for failure and financial loss.
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.
We’ve been looking at the issue of delay in construction projects, particularly how delays are to be handled under a construction contracts. Picking up where we left off last time, concurrent delays are another issue that should be dealt with in construction contracts. Concurrent delays are those for which there are two or more potential explanations for the cause of the delays, including actions or omissions of both the property owner and the contractor.
Previously, we began looking at the issue of construction delays and the potentially significant costs associated with them. As we noted, construction delays often do not come with drastic costs until they result in delays in the overall construction project.
With the road construction season upon us, Pennsylvania readers are sure to soon experience the inconveniences associated with such projects. In particular, two Pennsylvania Department of Transportation construction projects, one on Route 147 in Point Township and another on Interstate 80 in Montour County, are expected to cause traffic delays.