A contractor breach of contract is when a contractor you’ve hired for a project doesn’t fulfill their duties or responsibilities as mentioned in your contract. A prime example of this is if they don’t complete the work required.
If you’re dealing with a contractor breach of contract, you’ll want to be aware of your rights and how you can resolve the matter so that you achieve the results you want.
In the rest of this article, we’ll explore the common types of contractor breach of contract, how to deal with contractor breach, how to prevent it in future, and when you should consult with a lawyer.
What are Common Types of Contractor Breach of Contract?
Some of the most commonly-seen contractor breaches of contract include the following:
- Project abandonment. The contractor stops halfway into a project, causing you stress and worries, especially if they’ve already been paid. In some cases, the contractor might disappear and stop responding to your messages.
- Incorrect materials. Although the contract might specify the materials to use, the contractor could be using different ones that reduce the quality of the project.
- Missing deadlines. In some cases, minor delays are common and not big problems during a project. However, a contractor could be delaying the project without valid reason.
- Lack of industry standards. Your contractor has to ensure their work is of a high standard that meets industry standards and building codes. A contractor is in breach if their work doesn’t achieve this.
What Are Your Rights During a Contractor Breach of Contract?
The most important thing you should do during contractor breach is to remember your rights.
You Have a Right to End the Contract
You can terminate the contract with the contractor and hire someone else to complete the project. To prevent a dispute, however, you should ensure you do this legally.
- Keep a record of all written communication and photos of the breach, such as the incomplete work or incorrect materials being used on site.
- Write a notice letter to the contractor so that they are aware of the issue. Give them a deadline in which to fix the situation, such as two weeks. If they don’t, you can end the contract.
Since laws surrounding contractors can be complex, you want to hire a lawyer to help you with sending notice letters. ContractsCounsel is an online legal network that connects vetted lawyers with clients. You can request the drafting of your letter by a lawyer so that it’s legally enforceable and in line with all appropriate regulations in your location.
You Can Seek Damages for Contract Breach
Although contract breach remedies can vary in different states, you can usually gain compensation for damages, such as any financial losses. This can include lost rental income if your property was an investment.
You Might Be Able to Make Bond Claims
Depending on your situation, you might be able to seek remedies from bond claims. For example, if you paid the contractor for the work but it wasn’t completed, you could file a claim against their bond, provided they’re carrying a surety bond.
What Should You Do During a Breach of Contract?
When experiencing a breach of contract, you should try to resolve it out of court. A lawyer can help you find the best alternative dispute resolution (ADR) method for your specific needs.
Common ADR processes include:
- Negotiation. This is an informal way to resolve misunderstandings and arguments between you and the contractor.
- Mediation. Hire a neutral, third-party mediator to help you and the other party to reach a settlement that you both find favorable.
- Arbitration. A bit more formal than the previous methods, arbitration involves hiring an arbitrator to listen to both parties’ cases and decide on a legally-binding resolution.
How Can You Prevent Contractor Breach of Contract?
In some cases, you might be able to prevent contractor breach of contract. Here’s how to protect yourself.
Draft Robust Contracts
One of the most important things you should do at the start of a contractor project is to have solid contracts written up. These should outline and define important aspects of the project, such as duties, obligations, payment, and legal consequences.
You can request a contractor agreement to be written up by a vetted lawyer on ContractsCounsel’s platform. Simply post a request and you’ll receive multiple bids from lawyers who have years of experience, expertise, and excellent credentials to create comprehensive contracts.
Get Regular Updates
You should communicate with the contractor on a regular basis to ensure you’re both on track to completing your project milestones. Keep communication lines open so that your contractor will be able to contact you should there be an issue.
Checking in on a regular basis will prevent disputes and tackle minor issues before they can escalate.
Keep all Contractor Documents
From the start of your project, you should maintain documentation and a record of communication between you and the other party. This can help you to prevent any misunderstandings and disputes.
Why Should You Consult with a Lawyer?
Breach of contract is a serious, sometimes complex situation, so you want to hire a lawyer to assist you. Here is how they can help you.
- Negotiate with the contractor on your behalf. This can help by putting pressure on a contractor who isn’t complying or who is trying to avoid you.
- Seek damages. A lawyer will gather evidence to help you state your case and get damages for the losses you’ve experienced because of the contractor’s breach.
- Document all evidence you need to strengthen your case.
- Represent you in court if ADR methods aren’t successful.
- Draft and review solid, clear, and legally-sound contracts.
- Use their legal knowledge to ensure you take legally-compliant actions.
Do you need a lawyer for a contractor breach of contract?
If you need a lawyer for a contractor breach of contract, you can hire a vetted, skilled lawyer on ContractsCounsel. They’ll use their experience and expertise to assist you throughout the dispute process to minimize your risks and prioritize your interests.
