3 Serious Consequences Of Construction Lawsuits
Running a successful construction company can be very rewarding and lucrative. However, construction projects can take a lot of time and involve a number of contractors and vendors, so they can be quite complicated. Unfortunately, a lot of construction companies will run into at least one lawsuit while they are in business. Some of the most common construction lawsuits involve breach of contract or construction defects.If you own a construction company, it is in your best interest to have an experienced construction litigation attorney on retainer, even if you are not involved in any active lawsuits. Being represented by a reputable attorney can help prevent some of the negative consequences of a drawn out lawsuit, such as:
1. Penalties and Damages
No construction company wants to be found liable in a construction lawsuit. When a construction company loses a lawsuit, they may be ordered to pay penalties and damages that can add up to be a very large amount of money. In some cases, the penalties and damages that a construction company is ordered to pay can negate any profits on a project, or could even lead to losing money. A great construction litigation attorney will work hard on your companies behalf to help ensure a positive outcome during a construction lawsuit. If your attorney is not able to win the lawsuit outright, he or she may be able to arrange a settlement that is less than what you would be ordered to pay if the lawsuit went to trial.
2. Serious Delays on Projects
In order for a construction company to be successful, each project needs to be completed on time and within budget. When a construction lawsuit is brought forth against a construction company, it can lead to progress on a project halting, making it impossible to finish the project on time. Delays can be especially long if the lawsuit has to go to trial. If your company has a construction litigation attorney on retainer, he or she can take the steps needed to resolve a lawsuit as quickly as possible so your company can resume work on your current construction project.
3. Diminished Reputation
In the construction industry, reputation is very important. Construction companies often secure bids for new projects based on their reputations. Thus, being involved in one or more lon, drawn-out construction lawsuits can greatly damage the reputation that a construction company has worked hard to earn. If your construction company has a construction litigation representing you, he or she can work on your behalf to take care of potential issues in a timely manner so you don't get stuck going through a lengthy trial that can damage your company's reputation.
Contact your local business litigation attorney's, such as Wright, Ponsoldt & Lozeau, Trial Attorneys, for more information.