Moving into a freshly built or newly renovated home can be exhilarating—until you find a flaw, and it turns into a nightmare. That’s why, especially in Florida, it’s crucial to ensure your contracts are ironclad and advantageous before construction even begins. This article covers everything you need to know about construction contracts in the context of construction defect claims, including:
- What needs to be included in your contract (with examples).
- Your rights should the contract be breached.
- How to negotiate a better contract and the role of an attorney in the process.
What Should You Include In A Construction Contract In Florida?
A well-drafted construction contract should include the following specific terms:
- Terms
- Conditions
- Price
- Damages
- A dispute clause
The dispute clause is particularly vital, as it clarifies who will be responsible for paying attorney’s fees if litigation arises. Typically, the prevailing party should be the one entitled to recover these fees, but this must be explicitly stated in the contract.
In general, your contract should also specify:
- Certain dates
- Certain prices
These details are essential, yet they are often overlooked in many contracts.
Unfortunately, just like with dispute resolution clauses, many contracts are one-sided and heavily favor the contractor when they should be fair to both parties, particularly when it comes to who pays attorney fees in the event of litigation.
Today, many builders prefer arbitration over court litigation. Unfortunately, arbitration is often less favorable for homeowners, who lose the opportunity for a jury trial.
Many construction contracts now include arbitration clauses that require homeowners to file with the American Arbitration Association, a process that can be lengthy and costly.
Attorney Eric Jones’s time in the military only honed the natural discipline and integrity he brings to every contract negotiation or construction litigation in Florida courts. He is an ardent defender of the rights of Florida homeowners and businesses owners alike, and wants to make sure no one is taken advantage of, or finds justice if they are.
Have you had your building contract reviewed by a skilled lawyer? Has a contractor failed to follow through with the terms of your contract? Contact The Jones Law Firm today to schedule an initial consultation.
What Are My Rights If A Contractor Fails To Meet The Contract Terms?
Contracts are critical because they determine your rights in the event of a breach. Even if the contract doesn’t specify, you always have the right to sue. What isn’t automatic, however, is the forum in which the dispute will be resolved—this could be either in court or through arbitration.
Another right you always have is to file a Chapter 558 Defect Notice with the assistance of a credible lawyer. While you can file it without a lawyer’s help, it’s wise to have your submission reviewed by one. Not only will a lawyer’s guidance increase the likelihood of winning your case, but it can also significantly increase the amount you recover.
Unfortunately, many homeowners and business owners aren’t aware of this. They might send a simple email expressing their dissatisfaction or noting that something is broken, but they don’t do it the right way with the support of credible experts. It’s important to understand that this “soft approach” can weaken your position during negotiations.
How Can I Negotiate More Favorable Terms In My Construction Contracts?
For any contract to be valid, there must be a meeting of the minds. You should never sign a contract blindly. It’s crucial to take any construction contract to an attorney—preferably one who specializes in construction—before signing. This is especially important when substantial amounts of money are involved.
You should also ensure the contract includes a clause allowing for changes in the terms and conditions with a signed written agreement by both parties. A contract should be like a living document, capable of being amended, but only when there’s mutual agreement, formalized in writing, and added as an addendum to the contract.
What Are Clauses Should I Include In My Florida Construction Contract?
Many contracts include common clauses that are often added by default, though it’s important to verify their presence and details. Some common clauses include:
- Damages Clauses: These may include provisions for liquidated damages, allowing a party to receive up to three times the amount if they prevail in a trial.
- Dispute Resolution Procedure Clauses: These clauses specify whether disputes must be resolved in court or through arbitration.
- Basic Contract Terms: This includes an offer, acceptance, and consideration.
The contract must clearly state the offer, the terms and conditions of that offer, and it must be accepted and signed by you, the homeowner.
Your contract should also include a clear statement of consideration—how and when payments will be made, whether upfront, quarterly, or upon completion of the project. Furthermore, it’s wise to withhold the final payment until the home or renovation passes the final inspection, as this provides you with leverage over the contractor.
Unfortunately, some homeowners place too much trust in their contractors and pay the full amount before the final inspection, only to find themselves entangled in construction defect or contract litigation, or stuck with a poorly completed job. This is where an experienced construction litigation attorney can step in to help you recover losses associated with a breach of contract.
What Is The Role Of A Construction Attorney In A Contract Dispute?
Construction litigation is intricate and highly detailed, with specific rules and procedures. The role of a construction attorney is to navigate this complex system to seek justice on your behalf.
In contract law, damages are intended to compensate for the harm done, not to provide a windfall (except in rare cases involving punitive or deceptive practices).
The goal of a construction attorney is not to make you rich but to make you whole— to restore you to the position you should have been in when you signed the contract.
The objective is to undo as much of the damage as possible, enabling you to properly repair your home or business according to what the contract should have delivered.
Still Have Questions? Ready To Get Started?
For more information on Your Rights In Construction Contracts, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (904) 569-8222 today.
Attorney Eric Jones’s time in the military only honed the natural discipline and integrity he brings to every contract negotiation or construction litigation in Florida courts. He is an ardent defender of the rights of Florida homeowners and businesses owners alike, and wants to make sure no one is taken advantage of, or finds justice if they are.
Have you had your building contract reviewed by a skilled lawyer? Has a contractor failed to follow through with the terms of your contract? Contact The Jones Law Firm today to schedule an initial consultation.
