Lawyers for construction companies handle a variety of legal matters for contractors. This includes drafting and reviewing contracts as well as assisting clients with insurance claims. While some lawyers for construction companies may handle cases that pertain to residential projects, others primarily focus on commercial projects. Some construction law firms, however, may work with both commercial and residential clients.
Builders Risk Coverage
In order to protect a project’s fixtures, equipment, materials, and other insurable assets, construction companies need to purchase builders risk coverage. This insurance is taken out for a minimum of one year to cover new building or structural construction as well as additions, alterations, and/or repairs to existing buildings. In order to file for and process this coverage, ISO’s Builders Risk Coverage Form, CP 00 20, is used.
Preferred Conflict-Management Process
When a breach of contract or another legal matter arises, alternative dispute resolution (ADR) is the preferred method to resolve conflicts, per the American Arbitration Association. If a breach of contract occurs within Texas, for example, a claim needs to be filed within a specific time period. Unless a contract indicates two years, these claims must be filed within four years.
While there are several reasons why ADR is the preferred method for conflict resolution, one of the primary reasons is that it generally takes less time. In 2015, for instance, the median time period was less than eight months. It’s important to note that this included the entire time span from initially filing the claim to receiving the award.
Another important reason is that when civil cases are filed in state courts, the plaintiff tends to win more often. A 2005 review of these types of cases showed that bench trials were won by plaintiffs 68% of the time. When these cases were tried by a jury, however, the plaintiffs won 54% of the time.
When Do I Need a Construction Attorney?
It makes good business sense to have an attorney to assist you with contracts and other important documents. A construction attorney can provide you with advice and counsel so that you understand the nuances of local laws and regulations that pertain to your projects. Furthermore, if a conflict does arise, a construction attorney will be able to take you through the alternative dispute resolution process. In the event that a case does need go to court, a construction attorney will be their to represent your interests there as well.