Construction Law Newsletters

Common Construction Contract Relationships and Practices

Most construction contracts contain similar elements defining the relationships between the owner, architect and/or engineer, and contractor. Additionally, general conditions representing common construction practices are included in the contract. Naturally, construction contract documents separate out the responsibilities of the parties.

Owner's Waiver of Completion Date

Normally, when a contractor's performance under a construction contract is delayed, the owner may seek damages arising from such delay. However, if the owner has waived the agreed-upon completion date, he may not later seek damages based on the contractor's failure to complete performance on such date. To determine whether a waiver has occurred, courts will examine all the surrounding circumstances, including the actions and inaction of the owner.

OWNER'S DEFENSES TO BREACH OF CONTRACT

If a contractor files a lawsuit against an owner for damages for breach of contract, the owner may defend the lawsuit by claiming that the contractor failed to perform in accordance with the contract and that the contractor breached the contract.

"SICK BUILDINGS"

Recent litigation regarding construction defects have included defects that involve "sick buildings." "Sick buildings" are generally defined as building that make people sick. These types of buildings include buildings that are associated with air quality problems, which problems cause various diseases or allergic reactions that are traced to airborne contaminants.

Construction Contract Assignments

Generally, parties are free to assign their rights and responsibilities under a contract. However, many construction contracts include a provision prohibiting this practice absent written consent by the owner.