Project delayed while construction law issues are resolved
Many California residents can understand why a community might feel frustrated if a demolition/construction project that was scheduled to be complete in a year was left unfinished. Construction law problems can arise that cause serious delays on a job site. That appears to be the problem in another state where real estate developers have stifled payments on a contract they say has fallen way behind schedule.
An old hospital building was supposed to be demolished so that a new apartment complex could be built on the site. Developers say they have paid more than $1 million so far but refuse to issue any additional payments because the work is not being done according to the terms of the agreement. The contractor is accused of making false statements in calling the project 90% complete.
The developers say the five-story building has not even been torn down. According to the contract, the project was scheduled to be complete (with new apartment building erected) by the end of this summer. The president of the company said he has no intention of paying for unfinished work.
Construction law can be quite complex, making disputes like this one difficult to resolve. This is why most California contractors and real estate developers rely on experienced attorneys to negotiate or litigate for them, as needed. An attorney can also carefully review a proposed contract before signing, to make sure all parties clearly understand and accept the terms of the agreement, which often helps prevent legal problems from arising down the line.