Overcoming Development and Construction Legal Hurdles
Any construction or development project involves legal issues that you may need a construction lawyer to handle. During your daily business, you will encounter many challenges that can take your time and focus away from the specific details of your project. The hope is that there are no unwanted surprises, since they can cost you time and money. Unfortunately, construction and development projects are often unpredictable.
The best step you can take is staying proactive to prevent these issues from arising in the first place or developing a strategy for handling them. If you face any hurdles, you cannot ignore them because another party may hold you liable. This liability can raise your financial costs of doing business and even threaten your company’s existence.
You should hire a construction law attorney ahead of time to overcome any potential complications. A construction lawyer can plan and triage your risks and take steps to forestall the problem. Your attorney can also deal with any difficulties you may experience to keep your project running and get the best possible result from any dispute or legal issue.
Difficulties You May Face in a Construction or Development Project
You may face numerous legal problems in the construction and development process. Any of these challenges can either derail a project entirely or, at the very minimum, slow things down measurably. In addition, your business may have to deal with liability, threatening your ongoing operations.
Some difficulties that you may face in the development and construction process include:
- Contractual disputes – You may have to handle a disagreement after signing a contract. The other party may not perform in accordance with its terms, and you may have to file a lawsuit for breach. Alternatively, if there are disagreements about the meaning of the contract, you may need to have a court decide on any ambiguities. Contract litigation has little predictability because the document can have two reasonable interpretations.
- Permitting issues – Developers must obtain permits from the local authorities for a project. The authorities may deny permission for several reasons, including problems with the application or deciding that the project is not in line with their goals for smart growth. Sometimes, a developer must receive numerous environmental approvals before they can proceed. Permitting issues can cause significant delays or lead to the termination of a project.
- Zoning laws – The local zoning board must approve the development project as part of the permitting process. If the project does not fit into what is currently allowed in that zoning district, you will need to seek a variance from the zoning board. Neighboring landowners also have a right to voice their opinions during the process. If the local zoning board denies the variance, you may need to file a lawsuit against the local government.
- Construction defects and liability – A developer may hire a contractor to complete the project. The contractor may not follow the specifications outlined in the original contract or deliver shoddy work. Parties may sue the contractor for material defects, but these are often very technical and hard-fought lawsuits.
- Delays and cost overruns – Project delays can result in significant cost overruns, and it is not always clear who should cover these losses. The contract will address delays, but parties may claim that the developer is responsible because they ordered changes or did not make the site fully available.
- Mechanic’s Liens and Payment Disputes – If a contractor or subcontractor does not get paid for their work on the project, they have a lien against the property. Then, no one can sell the property until they pay the lienholder. In addition, the customer may seek to withhold payment from the contractor because they claim the builder is not complying with the contract terms.
You can take numerous steps to protect yourself and avoid some challenges that can derail a project. The same thing holds true whether you are a contractor or a developer. The more you prepare and the more foresight you exercise, the less chance you will face insurmountable hurdles. Of course, you cannot always control what someone else does, so you can never eliminate the possibility of a lawsuit or parties withholding key approvals.
Know the Legal and Regulatory Landscape
Numerous state and local laws govern any construction project during the approval and building phases. None of these should surprise you, and you should understand land use restrictions and the permitting approvals process. You should also know the laws that apply to the actual construction. For example, contractors must follow an extensive set of Occupational Safety and Hazards Administration regulations. These OSHA rules can form the basis for heavy penalties when contractors violate them, especially if a worker suffers an injury.
A key benefit of working with a construction lawyer is their knowledge of the intricacies of local and state regulations. They understand the legal landscape and can help you with permits, licenses, and zoning ordinances. By being proactive and working with an attorney from the outset, you can ensure that your project complies with all applicable laws, mitigating the risk of costly delays and legal disputes down the line.
Perform Due Diligence Before Signing a Contract
Before you agree with someone on any consequential contract, you need to know the counterparty. You must perform due diligence before you decide to enter into any business agreement. Take steps to learn of their reputation and history; particularly, you want to know whether the other party has a history of safety violations or contentious litigation. You should also investigate their financial stability and whether they have the means to pay when necessary or complete work on a project. Your construction lawyer will help you perform this due diligence, and they can advise you about what you need to know when researching another party.
Review Contracts Before Signing to Ensure Clarity
You should never sign any contract without knowing what it says in detail. Even if you understand the contract, the words may not say what you think. The terms are binding once you have affixed your signature to a legal contract. The last thing you want is to find out that you and the other party interpret the words on the contract differently during the performance phase.
The contract’s ambiguity can cause uncertainty because you are unsure of what the agreement says. In that case, a judge may need to interpret the words of the contract if there is a lawsuit. Although breach of contract lawsuits are common, you can prevent a court case altogether when a construction law attorney drafts the document or reviews it closely before you sign it.
Construction projects involve multiple parties, including contractors, subcontractors, suppliers, and vendors. A well-drafted contract is essential to protect your rights and interests. An attorney can carefully review and negotiate terms, ensuring your contract is fair, balanced, and enforceable. They can also assist in dispute resolution and, if necessary, represent your best interests in litigation proceedings.
Ensure Proper Risk Management
Your business needs to manage risks to avoid lawsuits and potential compliance issues with regulators. Risk management assesses any possible challenges that you may face. Then, you need strategies for preventing and dealing with these issues as they arise.
Risk management begins with your policies and procedures. You must draft these ahead of time, and it is best to have an attorney guide you through this process. These policies and procedures can address significant business issues and areas of liability.
If you are facing a lawsuit or regulators are considering taking any action against you, they will first ask for your policies and procedures and scrutinize your compliance with them. If you either do not have policies or fail to follow the ones that you have, you may face some complications.
Use Alternative Dispute Resolution When Possible
Even if you disagree with another party, it does not always mean you have to file or face a lawsuit. There is a chance that the two parties can proactively engage each other early in the dispute to find common ground before one or both of them file a lawsuit. You will exchange viewpoints at the outset of the conflict and potentially reach a settlement agreement or agree on a compromise.
If you are in the middle of a lawsuit, there are still ways to avoid a trial, potentially saving money and reducing your amount of risk. You can engage in various forms of alternative dispute resolution to end the disagreement before your case proceeds to trial.
Mediation is the most common form of alternative dispute resolution. Here, a neutral third party facilitates these discussions between you and the other party. People turn to mediation because it is often effective and highly successful.
Arbitration is another means of dispute resolution. In arbitration, the arbitrator acts as a judge and makes a decision based on the evidence and arguments presented by both parties. Unlike mediation, where a neutral third party facilitates negotiations between the parties, the arbitrator has the authority to make a final legally binding decision.
Your contract with the other party may even require arbitration instead of allowing the parties to take their case to court. Arbitration is sometimes a less expensive means of resolving a dispute, which can remove the cloud hanging over your business when you have any legal challenges.
Hire a Construction Law Attorney to Prevent Possible Hurdles
One of the most important things you can do to facilitate progress is to hire a construction law attorney to represent you early in the process. You should not wait until you face complications to get legal help. In fact, early engagement with a construction attorney can ensure that you avoid some of these challenges altogether.
- A construction lawyer can ensure you are proactive and can spot potential problem areas before they arise. They can assess your legal and regulatory risks and help you take action in advance to address them. You will better understand the situation with an experienced professional on your side.
- Hiring a construction attorney can help you objectively resolve a dispute with the other party because they can provide you with timely and objective legal advice. Your attorney will communicate on your behalf, helping you take emotion out of dealing with the other party.
- Your construction attorney works as your partner to plan for what you may face in the future. They will guide you through transactions and any disputes that may arise. Engaging a lawyer during the negotiation phase of any deal can help ensure that the written terms you have agreed to reflect your exact impression of the agreement.
- Legal help means you are ahead of the curve and can have peace of mind. You will have less stress in your life, so you can focus on your business and earn money.
If you hire a construction law attorney after encountering problems, your costs and risks are likely much higher. Nonetheless, if you do not already have a construction lawyer, you should retain one at the first sign of trouble. Hiring a construction law attorney as a proactive measure can free you up to focus on what is most important to you, namely, conducting your business and earning revenues.
When it comes to construction law, time is of the essence. Construction projects often operate on tight schedules, and unnecessary delays can have significant financial implications. Working with an attorney can streamline the legal process, ensuring you file all necessary paperwork promptly and accurately. They can also advocate for your interests in negotiations, helping resolve disputes efficiently and keeping your project on track.
A Construction Lawyer is Your Best Ally
Development and construction projects are not without their legal hurdles. Hiring an experienced Seattle real estate attorney can give you the knowledge and support you need to deal with these challenges successfully. From ensuring compliance with regulations to overseeing contract negotiations and resolving disputes, an attorney can be your trusted partner throughout the construction process. With their assistance, you can overcome legal obstacles and achieve a successful outcome for your project.