Creating a thorough contract can be one of the most integral aspects of preparing to initiate operations on any type of construction project. This agreement can include terms that govern many aspects of the project, and these terms may also act to protect the interests of your company and all other parties involved.
Should another party fail to uphold its end of the arrangement, the contract may also depict your options and the next steps to take to resolve the matter. However, there may be certain types of issues that could affect the validity of the agreement or cause the contract to become unenforceable.
There may be several types of issues that could cause a construction contract to become invalid and unenforceable, some of which might include:
- Contract errors: Errors and omissions continue to be a common concern in this industry. Errors in the terms of a contract could cause at least a portion of the agreement to become invalid.
- Prior violations: A contract may also be unenforceable if one party violates the terms of the agreement. Nonpayment is a common example of an issue that could prompt similar results.
- Illegal terms: For a construction contract to be enforceable, the terms thereof must be legal. Terms or conditions that violate Florida state construction laws could diminish the contract’s validity.
- Capacity and coercion: A contract may also become unenforceable if one party involved was the subject of coercion or lacked the capacity to understand the terms of the agreement.
- Misrepresentation: The presence of misrepresentation is another type of issue that could affect the validity of a contract, and taking steps to protect against such issues could be vital.
Contract-related disputes remain one of the leading causes of conflict in this industry, and when similar issues arise, you might find it helpful to seek insight in preparing to address the situation.
Addressing the situation
The presence of similar concerns may only increase your risk of encountering conflict or disputes on a Florida construction project site. Understanding the types of issues that could affect the validity of your construction contracts could be vital to helping you prepare to take the proper steps to keep similar issues at bay. This could help you prepare to protect your company’s interests by creating thorough contract terms or help you prepare to seek advice on your options and the best course of action to take should the unimaginable arise.