Types of Cases Handled by Auckland Construction Disputes Lawyers
An Overview of Common Legal Matters in the Construction Sector
Introduction
Construction disputes are common, and it is one of the biggest earning sectors for Auckland law firms. When you consider all of the various inter-connected companies involved in any construction project, property owners, contractors, developers, architects, engineers, and suppliers, it is not too difficult to see why there can be a dispute somewhere. Let’s take a look at some of the types of cases that Auckland construction dispute lawyers work on.
Common Types of Construction Dispute Cases
Construction projects, whatever the size, have multiple suppliers. For major building projects, the number of services providers, increases, as does the value of each stage. Very quickly, multi-millions of dollars can be at risk.
Further, given the tight cashflows that most operators have, the need for prompt and full settlement of invoices can be critical. Building in New Zealand is largely under the Construction Contracts Act 2002. Below are common issues for Auckland construction dispute lawyers.
Contract Disputes
These disagreements can be about the terms of the contract such as payment disputes, interpretation of the meaning or intention of various clauses, and performance. Performance can be delays whether in delivery of materials, or in output of work, or variations in scope such as deviating from the agreed design or quality
Termination of contracts
Under what circumstances can a contract be terminated? Is there a performance, or a time element involved?
Payment Claims
Payment ought to be one of the most visible and easy to understand clauses in a contract. It should stipulate items such as progress payments for completed works, and retentions until the work are signed off.
Another aspect that needs to be spelled out n the contract is adjudication proceedings, i.e. how, where, and by whom will the payment dispute be viewed.
Defective Workmanship and Building Defects
Defects and the standard of workmanship are common problems. Often, they are subjective, open to interpretation, rather than having a clear measure such as a short delivery of materials which can be measured in meters, tonnes, pieces, etc.
Non-compliance with building codes and standards is an easier issue to assess but can take time to get an Auckland Council building inspector to visit the site to make the assessment.
Another type of dispute relates to the use of substandard materials.
Delay Claims
Building projects can be subject to delays resulting in financial costs. A construction disputes lawyer can review the causes of the delays and consider liability for them and negotiate time extensions or financial compensation for affected parties.
Regulatory and Compliance Issues
This can be a wide range of issues including failing to meet the requirements of the design, using non-compliant materials, and more. Lawyers can advise on matters relating to building consents, compliance with Auckland Council regulations, health and safety obligations, and environmental laws.
Negligence and Professional Liability
This area generally affects the professional service firms sub-contracting to the project. Typically this involves claims against architects, engineers, or other professionals for alleged negligence or breach of duty, resulting in project failures or defects.
Disputes with Subcontractors and Suppliers
There is a myriad of sub-contractors involved in even a small project like a house renovation. Builders, plumbers, carpenters, electricians, drainage, roofers, decorators, as well as the various material suppliers.
Disagreements can arise regarding supply of the correct materials, failing to meet agreed delivery schedules, and sub-standard quality can lead to legal action between main contractors and their subcontractors or suppliers.
Insurance Claims
Insurance claims can arise due to property damage, public liability, or builder’s warranty insurance policies.
Dispute Resolution Methods
Lawyers help clients pursue or defend claims for rectification, compensation, or remedial works. Te common dispute resolution methods are:
Negotiation, which is generally between the various lawyers of each party.
Mediation where a mediator helps the partes define the issues in the dispute, develop and explore settlement options, will act to remedy the situation.
Arbitration where an independent lawyer will make a biding judgement.
High Court is the final, most expensive, and the longest process.
Conclusion
Auckland construction disputes lawyers work with clients to either defend or pursue a broad range of cases. These can be contract or payment issues, professional negligence, or regulatory compliance. Given the amount of potential finger-pointing with so many parties involved, it is a difficult and challenging area of law.
If you have a construction dispute of any kind, a good Auckland law form to approach is McVeagh Fleming. They have a team of lawyers who can help you with the complexities of construction law aiming to bring a resolution to their disputes.