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3 common issues that lead to construction contract disputes

Real estate development is in high demand in major cities across the country. Right here in Florida, metros like Orlando, Tampa, St. Petersburg and Sarasota are all seeing an influx of newcomers – and that’s good news for the construction industry.

While business may be booming, that doesn’t mean there won’t be disputes. Even a well-planned development project can face setbacks regarding contractual obligations. That’s because multiple parties are often involved in the decision-making process, including property owners, contractors and subcontractors.

Common reasons for construction disputes

Owners need to be aware of these potential setbacks:

  • Contracts containing errors or insufficient information: This is one of the most common causes of construction disputes. All parties should take steps to ensure that their contract has been thoroughly reviewed and agreed upon.
  • Non-compliance with/breach of contract: A specific and transparent agreement can make a world of difference. However, that doesn’t necessarily mean all parties will hold up their ends of the deal.
  • Disputes over site conditions: It's easy to assume that site of the project will match the conditions described in the contract. Unfortunately, that’s not always the case. It's important to ensure that the terms of the contract take into account the reality of the project.

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