Construction projects are complex on so many different levels. Many different companies and parties are involved, and they each have their interests and stakes in the project. Then there’s the actual project itself. Building or renovating something isn’t exactly a “quick” or “simple” process. And on top of all of that, there are the contracts and deals that are signed between the parties.
These contracts are far from a small undertaking. So much goes in to the details and the provisions that when they are violated, the parties involved are understandably upset. Holding the violating party responsible is crucial, not just for the sake of responsibility, but there are often massive financial implications to a contract violation too.
For example, take a case from right here in California where the contractor C.C. Meyers is being sued by Bay Cities Paving & Grading for $900,000 in unpaid work. The lawsuit is in relation to a $133 million highway project on Interstate 80. There seem to be additional claims as well, with Bay Cities alleging that C.C. Meyers received some several million dollars that are unaccounted for.
Whatever is true and however this case shakes out, what you can take away from this case is that when a party allegedly violates a contract, it is imperative for the other party (or parties) to hold that offending company responsible. $900,000 is a lot of money and any company would want to recoup such finances. Don’t let a contractual violation be swept under the rug.
Source: Sacramento Bee, “Two lawsuits filed against C.C. Myers Inc. construction company,” Tony Bizjak, April 5, 2016