Legal issues can derail a construction project

| Aug 7, 2020 | Business Law |

The construction industry is big business in Colorado.

Many individuals and businesses, including subcontractors, property owners and other investors, as well as general contractors rely, on this industry for their livelihoods, and each plays an essential role in almost any sizeable construction project.

Government officials are also frequently involved in construction projects. Projects in the Denver area, for instance, are going to be subject to a variety of regulations enforced by local and state officials, and federal laws may also apply.  Governments also frequently award construction contracts, and these come with their own set of obligations and requirements.

In short, big projects involve many business engagements between dozens of different parties with different interests. It’s not surprising that litigation and the threat of lawsuits or other legal action are common in the course of a construction project and after its completion.

These legal issues will require a decisive and well-thought response from those involved. Doing so can help protect a company’s bottom line and its other critical business assets, including the company’s reputation.

On the other hand, not taking a construction-related legal issue seriously can mean having to pay more than one should after a trial, arbitration, or settlement.

A poor legal strategy can also mean lost business opportunities and the loss of goodwill, as a business could wind up receiving public blame or bad press unfairly.

Not responding to a construction-related legal issue could mean that a business will have to devote a lot more time, emotional capital and money to resolving a legal issue that could derail what promised to be a lucrative construction contract.