The contract is the basic unit of every agreement as it is comprised of all clauses under which the parties get engaged in the projects. However, construction contracts are a critical piece of paper because anything can happen in the middle of the process.
So, it is essential to consider each and everything mentioned in project agreements to avoid misunderstandings and conflicts in later stages. Particularly, when you are dealing with construction projects in UAE, you should think of every clause for agreement in detail to avoid breaches.
The article is aimed to provide you with a brief yet comprehensive overview of breach of contract claims and its core reasons. Keep reading!
What is a breach of contract?
A breach of contract in the construction can be defined as a violation of clauses mentioned in the contract. It can be in the form of the delayed construction process or other consequences.
As a result, any contracting party can claim for the damages, but the decisions are usually made with the help of quantum experts. It is because an expert witness is essential to figure out a justifiable excuse for breaking the agreed clauses of the project.
Breach of Contract Claims in Construction – Causes and Remedies
Nevertheless, breaches in contractual agreements are the bad news for all the contracting parties. It is because they cause to damage the reputation of the companies as well as waste the investments in many cases. Therefore, it is essential to avoid construction claims related to contract breaches. You can do this by understanding the core causes as given below:
Delays caused by the owner
The scenario clearly enables the contractor to make a claim against the violation caused by the owners. For example, a general contractor signs an agreement to complete the overall structure of the building while a subcontractor is liable to complete the roofing process for the building. However, the owner failed to pay the required investment to the subcontractor – it is a breach of contract.
The situation can be avoided by making timely payments and considering the project work plan comprehensively.
Subsequent Buyers
It is a complicated reason for the contract breach. For example, the project owner has sold the project to another person who will be the subsequent buyer in this regard. However, the subsequent buyer was not initially mentioned in the contract, but he is liable to pay his share for the successful completion of the project. In any case, if he cannot make the payments and the original owner will also be unable to make payments. This chain may cause contractual breaches.
It is imperative for the original or the main buyer to consider taking payments in advance to avoid a bottleneck in the later stages of the project completion.
Substantial or Low-Quality Performance
It is a straightforward cause of contractual breach claim because the project was intended to be high-quality, but the builder performed really pathetic. In this case, the project owner can significantly raise a claim against the contractor.
So, improving the quality of work can help to eliminate the causes of contract breach. However, if you think that your contractor did not perform well, you can take assistance from quantum experts for analysis and evaluation.
Final Note on Contractual Breach Claims
Summing up the discussion, contracts in constructions are not the fun-walks in the park. It is because the individuals should actively involve in completing the projects without any delay or disruption. So, it is better to avoid disagreements and delays to ensure project success!
