Preventing and Resolving Construction Disputes: Understanding Liability

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Mandelbaum Barrett PC

Construction projects involve many moving parts, and when things go wrong—such as defects or failures—it’s crucial to understand who may be liable. Whether you’re a contractor, designer, owner, or manufacturer, each party has specific responsibilities that, if not fulfilled, could lead to disputes. Here’s a breakdown of the key types of liabilities and what they mean for your project.

Contractor Liability

Contractors are responsible for completing the construction work according to the contract’s plans and specifications. Their work must be performed in a good and workmanlike manner. When contractors fail to meet these standards, they may be held liable for issues such as structural defects or poor-quality workmanship that can compromise the project’s integrity.

Designer Liability

Architects and engineers, as project designers, have a critical role in ensuring that their designs and plans meet safety and functional requirements. Their liability often depends on the scope of work—whether they were responsible for designing the project or overseeing it on behalf of the owner. Mistakes, such as miscalculating load capacities, can lead to severe consequences like structural failure, making them liable for the damage.

Owner Liability

While less common, owners can also be held liable for defects in certain situations. If the owner provides incorrect information about the project or fails to maintain the structure properly after completion, they may face legal consequences. For example, if the space is overloaded with equipment beyond its design limits, the owner could be liable for the resulting damage.

Manufacturer Liability

Manufacturers play a critical role in providing reliable materials and equipment. If a product failure, such as a cracked boiler or a malfunctioning sprinkler system, causes damage or injury, the manufacturer may be liable for both personal injury claims and economic losses resulting from the failure.

Understanding the potential liabilities of each party is essential in preventing and resolving construction disputes. Each stakeholder must fulfill their obligations to avoid project delays, financial losses, and legal challenges.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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