Butler Williams & Skilling Blog

With Rough Economy Comes Increase In Construction Litigation

As the credit markets tighten and the economy seemingly grinds to a halt, a corresponding uptick in construction litigation has resulted.  For the first half of this decade ambitious builders and developers experienced something of a golden age.  While large scale construction inevitably leads to disagreement and disputes, during this “boom” period those involved understood that delaying a project due to litigation worked to no one’s benefit.  Now, however, as those involved with a project face an uncertain future, we find that construction disputes more and more often make it all the way court.  

In the past, parties to a construction lawsuit could typically assume a settlement would be reached prior to trial, but the economic downturn has drastically altered the equation.  When the prospect of settlement no longer represents a realistic or profitable option, litigation necessarily emerges.  A recent article published in the Virginia Lawyers Weekly describes several construction lawsuit scenarios which in the past would likely have settled.  Such situations include;

            -Defective Construction

            -Construction Delays

            -Foreclosure

Certainly, there are other reasons for a construction lawsuit, especially breach of contract for nonpayment.  However, that type of suit might find its way into court even under the best economic conditions. 

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