Private contractors are often asked to participate in publicly-funded construction projects. Delays in such projects due to litigation or court injunctions can thus affect private companies or corporations involved in such projects.
One of the intricacies about construction litigation is determining who is liable when construction defects or deficiencies are found. Because most general contractors enter into contracts that agree to guarantee their work, but also agree to defend other subcontractors, engineering firms or similar companies, one might assume that the liability would usually fall upon the general contractor. It all depends on the contract that was signed, though, and one example of this is the current legal wrangling in progress in the Yolo County Superior Court in California.
The SOMA Grand, a 22-story building in San Francisco, California, is known for selling all 246 residential units very quickly - even in a very tight housing market. The high-rise was built in 2009 and according to a lawsuit by many of the residents filed recently in the California Supreme Court, there are many construction defects. In addition, the lawsuit alleges building standard violation.