Whether you’re a property owner, contractor, subcontractor, real estate developer, or material provider, there are numerous risks and legal challenges involved in the construction industry on Long Island. Since the scope of construction projects is often complex, even just a minor legal misstep can cause delays, result in regulatory penalties, and lead to potential litigation. To ensure the success and longevity of your company, it’s important to understand what measures to take to safeguard your business interests.
Here are several ways you can protect your business interests if you’re involved in the construction industry on Long Island:
Negotiate and Enforce Strong Contracts
Well-drafted and thorough contracts are the foundation of every successful construction project. They not only outline each party’s expectations, rights, and obligations — but they can prevent disputes before they start. It’s essential to negotiate a strong contract to help ensure the project goes smoothly and to minimize risk.
A solid contract should contain clear and unambiguous provisions regarding the following:
- Scope of work
- Payment terms
- Timeliness of completion
- Dispute resolution methods
- Force majeure
Critically, a poorly negotiated or drafted contract can lead to project delays, damage to business relationships, additional expenses, and time-consuming litigation.
Ensure Compliance
Ensuring compliance is crucial to protect your business interests at both the planning stage and during the construction phase of a project. Compliance can include obtaining the necessary permits before starting any work, confirming all builders and contractors are properly licensed, verifying that contractors have the necessary insurance coverage, adhering to building codes, conducting inspections, and providing safety training. In addition, it’s vital to be familiar with the local codes and zoning regulations in the municipality in which you’re building.
Identify and Manage Risk
There are a wide range of risks in construction, including financial, legal, safety, and schedule risks. Conducting regular risk assessments is critical to mitigate these risks and ensure legal compliance. Effective risk management can enhance profitability, improve safety, ensure timely project completion, and prevent minor issues from becoming a major hurdle.
File a Mechanic’s Lien to Protect Your Financial Interests
A mechanic’s lien is a legal claim against a property that guarantees payment to builders, contractors, and subcontractors for their work and materials. As the lien can impact the sale or refinancing of the property until the issue of payment is resolved, it puts pressure on the property owner — if the debt isn’t settled, the lienholder may recover the amount owed by foreclosing on the property.
Consider Alternative Dispute Resolution When Disputes Arise
From breach of contract claims to project delays and defects, disputes are sometimes unavoidable in the construction industry. Alternative dispute resolution (ADR) methods such as mediation or arbitration can help to settle conflicts outside of court. ADR is less time-consuming and more cost effective than litigation — and it can also help to preserve crucial business relationships. Often, construction project contracts will contain a clause that specifies ADR should be attempted to resolve a dispute before filing a lawsuit.
Contact an Experienced Long Island Construction Law Attorney
Construction disputes on Long Island can be complex. It’s important to have a trusted construction law attorney by your side to protect your business interests. At Barnes & Barnes, P.C., we handle a wide range of construction law matters and are dedicated to helping each client achieve the best possible outcome in their case. Contact us at (516) 673-0674 to schedule a consultation.
