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Gaithersburg, Maryland Construction Disputes Attorneys

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Lawyers for Project Delays, Poor Workmanship, and Other Construction Disputes in Gaithersburg

When real estate developers plan large-scale development projects, they will make substantial financial investments. These projects require careful planning to ensure that they can be completed on time and within the proper budgets. Contractors, subcontractors, and suppliers are expected to perform their work according to the terms of construction contracts. When issues arise that may affect the outcome of a development project, a developer or property owner may experience substantial financial losses and other issues that may affect their ability to carry out their plans.

Property owners, developers, contractors, or other parties who encounter construction disputes will need to make sure they take the right steps to protect their interests. Representation from an attorney with experience in real estate litigation can be crucial. At Fox & Moghul, we work with clients in Gaithersburg to address legal issues related to construction projects. We can help our clients protect their investments and resolve concerns that may affect their development plans.

Our lawyers have extensive experience representing clients in a wide variety of matters, and we have achieved success in litigation involving construction disputes and other aspects of real estate law. Our team has won numerous awards, and we are leaders in the field, educating other attorneys about the legal issues involved in real estate litigation and business litigation.

How Poor Workmanship Can Affect Construction Projects

When a contractor or subcontractor fails to perform work at the level required, the damage they cause can be long-lasting. Issues such as improperly installed waterproofing, inadequate structural framing, or faulty electrical wiring can trigger a chain of consequences, and what begins as a small, localized problem can quickly expand into something that requires remediation work and causes delays and financial losses.

The impact of poor workmanship can include:

  • Repair and Remediation Costs: Substandard work may need to be torn out and redone, often at greater expense due to the additional labor required.
  • Damage to Adjacent Work: A contractor's defective work may damage other parts of a building or property. For example, water intrusion from improperly installed windows can destroy insulation, drywall, flooring, and the structure of a building.
  • Code Violations and Failed Inspections: Work that does not conform to Maryland's building codes may fail inspection, forcing the project to halt and creating additional costs to bring the work into compliance.
  • Delayed Occupancy: When defective work must be remediated before a certificate of occupancy can be issued, property owners and developers may lose rental income, or they may be unable to deliver a property to a buyer or tenant on schedule.
  • Diminished Property Value: Construction defects that cannot be fully remediated or leave underlying structural damage can reduce the overall value of the property.

Property owners and developers who discover poor workmanship have several legal avenues available. A breach of contract claim may address a contractor's failure to follow the proper specifications, use the right materials, or meet standards specified in a construction contract. If the contractor refuses to fix the defect, disputes the scope of the problem, or performs substandard repair work, litigation or arbitration may become necessary.

Construction Delays and Financial Losses

Time is one of the most valuable resources in a development project. Every day that a project runs beyond the planned completion date will lead to financial consequences. Delays may not always be under the control of the contractor, and issues such as severe weather events or supply chain disruptions could affect the completion of a project. However, other types of delays may be directly caused by a contractor's failure to hire enough workers, follow the correct steps when completing work, or order materials with enough lead time.

A contractor who caused a delay through poor planning or inadequate resources may be held responsible for the losses caused by the delay. However, when a delay has multiple causes, determining a contractor's level of responsibility may require a detailed review of project schedules, daily logs, correspondence, and other records.

Construction loan interest may continue to accrue during delays, increasing the overall cost of a project. Developers who have pre-sold or pre-leased units or space may face contractual penalties or claims from tenants who are unable to move in on time. Lost rental income during each month that a rental property is unoccupied can add to significant financial losses. Property owners may also be responsible for carrying costs, including property taxes, insurance, and maintenance expenses.

Construction contracts may include liquidated damages clauses that establish a daily penalty for each day the project runs past the planned completion date. A contract may also include notice requirements for contractors in situations where extensions may be needed. Failure to provide timely written notice of a delay as required by a contract may allow a developer or property owner to receive liquidated damages. Our legal team can help property owners enforce contract provisions related to delays, ensuring that our clients' financial interests will be protected.

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Other Common Causes of Construction Disputes

Disputes Over the Scope of Work and Change Orders

One of the most common sources of conflict during construction projects involves disagreements over what is required under a contract. If additional work will be performed outside the original scope of the contract, the contractor may be entitled to additional compensation. Contractors may claim that certain tasks were not covered under the contract. Owners may believe that those tasks fell within the original scope of work.

Change orders can lead to additional conflict. When the scope of a project evolves, a contract will typically require changes to be documented through written change orders signed by both parties. If contractors perform additional work based on verbal agreements, they may then ask for additional compensation for this work. An owner may believe that this work was included in the original contract and refuse to pay for additional work. Mediation, arbitration, or litigation may be required to resolve these disputes.

Nonpayment and Payment Disputes

Property owners and developers may refuse to make payments because they believe the work performed by a contractor is deficient, incomplete, or does not meet the requirements under the contract. Contractors may sometimes withhold payments from subcontractors even after receiving payment from the owner.

General contractors and subcontractors who are not paid for work they have performed may file a mechanic's lien against the property. This will create a security interest in the property, affecting the owner's ability to sell or refinance until the dispute is resolved. Property owners who receive notice of a mechanic's lien should treat it seriously and consult with legal counsel promptly.

Construction Defects Discovered After the Completion of a Project

Defective work may not be visible right away. Defects involving issues such as waterproofing, roofing, foundation work, or concealed structural elements may not become known until months or years after a project is completed. While most contract claims in Maryland must be brought within three years of the date of a breach of contract, additional time may be provided to file a claim if a breach is not discovered until later. Property owners who learn about construction can consult with our lawyers to determine what time limits may apply and what steps they can take to file claims.

Construction Dispute FAQs

Q

What Should I Do if I Discover a Construction Defect on My Project?

You can start by documenting the defect as thoroughly as possible with photographs, written descriptions, and inspection or engineering reports. Preserve any physical evidence, and do not allow repairs to proceed before the defect has been properly documented. Our attorneys can review your contract to ensure that you understand the standards that apply and the dispute resolution procedures that may be required. We can work with you to notify the contractor in writing of the defect and allow them to respond. If the contractor disputes the issue or refuses to make adequate repairs, we can help you take steps to address the breach of contract and the losses you have suffered as a result.

Q

Can I Withhold Payment From a Contractor if Their Work Is Defective?

An owner may have the right to withhold payment when a contractor's work is deficient. However, the right to withhold payment may depend on the specific terms in the contract and the nature of the defect. Withholding payment without legal justification could lead to a breach of contract claim. Our lawyers can help you understand what steps to take to address defective work, including whether you can withhold payments.

Q

If I Signed a Contract With a General Contractor, Can I Bring a Claim Against a Subcontractor?

Generally, property owners do not have contractual relationships with subcontractors, since subcontractors are hired by and report to the general contractor. Claims against subcontractors are typically not available to owners. However, an owner may pursue a claim against the general contractor who was responsible for the subcontractor's performance. Our attorneys can help determine which parties may be liable in a specific situation.

Q

What Happens if a Contractor Walks Off the Job Before Finishing the Project?

When a contractor abandons a project without legal justification, the owner may have a claim for breach of contract, and they may be entitled to recover compensation for the costs of hiring another contractor to complete the work, losses due to delays, and other damages. Our lawyers can provide guidance on the steps that should be followed in these cases to protect a property owner's rights and financial interests.

Contact Our Gaithersburg, MD Construction Dispute Lawyers

When a construction project has been derailed by poor workmanship, delays, payment disputes, or other issues, the team at Fox & Moghul can provide guidance on the legal options that are available. Our lawyers have the experience needed to handle construction disputes correctly, and we work closely with our clients to find practical solutions. Contact our Gaithersburg construction litigation attorneys at 301-409-5316 to arrange a consultation.

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