How can a buyer recover damages under a construction contract

On Behalf of | Mar 11, 2022 | Construction Litigation

If you have a contract with a builder to construct your new home, you need to know your rights under the agreement. The contract terms spell out specific actions that the contractor must complete.  The builder is also expected to comply with building codes and other standards of care.

If the contractor fails to complete the specified action, commits fraud or acts negligently, the buyer has an action for damages.

Failure to perform

A buyer can recover damages for a breach of contract if a builder fails to perform a contract element. The purchaser has to show that a written contractual obligation exists requiring the work by the contractor. Next, the buyer must show that the specified work was not completed.

Fraudulent action

If a contractor has promised you that they will complete a job using specific materials or methods and then they use something else, you may have a claim based on fraud. Fraud also occurs when you pay a contractor to complete something, and they do not. To recover, you will need to show that you justifiably relied on the contractor’s representations.

Negligent performance

Builders must complete jobs in a manner that complies with the state and local building requirements. If a contractor fails to follow these requirements, you might have an action for negligent performance.

A construction project is a large and expensive undertaking. If you are the buyer, you need to know that you have remedies if the project does not turn out as you expected.