Construction law involves any legal issues that is associated with the construction of a building or any other structures. Legal issues related to construction activities can arise from local, state and federal laws. Federal statutes such as employment laws, workplace safety and regulation and changes in the worksite hiring practices. Some states may impose additional regulations on existing federal laws. County and city ordinances may also impose additional restrictions on construction noise and zoning.
Before you begin any construction process, it is essential that you understand the construction laws in your area. All levels of the government play a role in construction regulation and issues can arise in many ways. Common construction-related disputes at workplace include construction defects, injuries, accidents, contact issues and problems associated with obtaining planning and building permits.
Financial issues are some common legal issues that may arise during a repair or construction project. Some construction projects can go over budgets because of unexpected material or labor costs. Alternatively, some clients may refuse to pay the construction companies for products that do not meet their expectations. When such legal issues arise, the contractor should have a good grasp of construction law. Many constructors will seek help when such financial problems occur and it is imperative that you understand construction law to prevent incurring further costs and financial difficulties. The existing government plays an integral part in construction law. When bidding, the contractors must pay close attention to job specifications to ensure compliance and the laws relating to the project. A construction contract provides a legally binding document between the builder and contractor. The contract covers how the job will be done and amount of the compensation or the total cost of the project.
There are different types of construction contracts in the industry. The details about specific terms such as quality, duration and specifications are some of the common aspects that cannot be underestimated in any construction activity. Construction law indicates that there should be a clear indication of the contract type. A fixed price contract includes overall construction related activities and may include other benefits such as early termination, liquidated damages and late termination fees. Lump sum fees are preferred when there is a defined scheduled and clear close. The contract is used when risks is transferred from the builder to the owner and in cases where the builder want to avoid change orders for unspecified work. However, the contract must include some percentage in monetary terms for the risks involved in carrying out such a risk.
Cost plus contracts usually cover payments of the actual costs, expenses and other purchases that are generated from the construction activity. Cost plus contracts have specific information about the re-negotiated amount to include material and labor costs. The costs must be detailed and put under the classification of indirect or direct costs.
Material and time contracts are used when the scope of the project is not clear or it has not been defined. The owner of the contract must establish daily or hourly rates which include additional expenses that could arise during the construction process. The costs should be classified as markup, direct, indirect and all information on the construction law should be considered
Why Do I Need To Know Construction Law?
It is important to get a grasp of construction law because it will help you from having to cover unnecessary costs that may occur during the process. A construction attorney will perform a number of functions which include review of documents to determine if there are any potential risks for the clients. Moreover, he will ensure that all provisions included in the construction laws protect your interest. When dealing with home or commercial real estate property, some lenders will require that you have an attorney or construction lawyer. This will help in relieving burden of proof especially on the builder. The lawyer will define for you the functions of each party. The construction lawyer will help you understand the aspects that are covered in the contact in relation to sale or purchase of commercial or real estate properties.
The essence of having construction law knowledge cannot be underestimated. You should protect your own interest if your are constructing a building. Especially if you have borrowed the money, you cannot pay huge interest costs and still make a mistake in dealing with the construction of the property. You should have all the information to help you through the construction process. In some jurisdictions, it is a legal requirement that you include a construction lawyer in the transaction. These states provide lawyers who are authorized to practice construction law. These states will require that you provide a lawyer before the construction process begins.
Some challenges during the construction process include costs, labor, and noise, environmental issues, among others. You may not be able to deal with all these alone. When you have a construction law professional, you will be able to make the right choice. Understating the complexities involved throughout the construction process is a feature that any building or commercial real estate owner will want to know. You should know all the information on zoning disputes, historical properties, water rights, gas rights, and adverse possession of claims, among others. Having a construction attorney will save you money in the end because you can deal with emerging issues quickly and clearly. In addition, you are likely to have a high value property when you involve a construction lawyer during the process.