Parties who enter into residential construction contracts can sue each other for breach of contract. The damages awarded may vary depending on the circumstances of the case, but there are two methods to determine the amount. One is the cost to complete method, wherein the party found in breach pays to complete the project as specified in the contract. The other method is to calculate the difference between the property value of the project as is and the expected value after the project is completed.
Do you have additional questions regarding liens against residential construction contracts? Our real estate attorneys are here to assist you throughout the process and answer any questions you may have. Contact a real estate lawyer near you today.
Listed below are legal aspects and contractual clauses for residential construction contracts:
The required warranty clauses in residential construction contracts include new home warranties or home improvement warranties, depending on the type of work being done. The new home warranty is split into three parts. The first one is a one year warranty for faulty workmanship and defective material usage. The two year warranty is for the installation defects, such as plumbing, heating, electrical wiring and more. The 10 year warranty is for major construction faults.
There may be exclusions in the contract. For example, exclusions can be inserted for defective design or material if the owner specifies use of said materials and design. The types of damages awarded for breach of contract can vary. If the contract specifies a sum in case of breach of contract, then that is called liquidated damages. Performance is where the court forces the losing party to fulfill the contract.
Do you or does someone you know need legal information regarding residential construction contracts? Our real estate lawyers are here to help. Contact a real estate attorney in your area today for more information.
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