Owning and running a commercial construction company can be a very rewarding position to be in. You are in charge of creating and remodeling commercial facilities that will be both functional and appealing. It can also be very profitable business creating a comfortable income for you, your family, and your employees. However, with rewards also come risks.
Commercial construction companies are at risk of lawsuits pertaining to on-the-job injuries, unhappy clients, faulty installations, and more. There are many reasons the relationship between a construction company and a client or the company and an employee may end up in a lawsuit. Due to this, builders risk insurance has become very expensive and may only be offered one year at a time. That allows the insurance company the opportunity to relook at their risk in insuring the company each year.
New technology has significantly reduced the risk of injuries, as well as engineering mistakes over recent years. However, risks can never be fully eliminated due to the nature of the job. For example, drones are now being used by engineers and architects to get more accurate views of construction related tasks. 3-D printers are also being used to create more accurate models and can now print with concrete material making incredible changes to the construction industry as a whole.
In most cases, when a commercial construction dispute ends up in a lawsuit, the case goes to arbitration. According to the American Arbitration Association, the largest claim to go through arbitration was $96 million. They also assert that alternative dispute resolution is the preferred method of dealing with these cases within the construction industry. Cases are generally settled in less than eight months, which is significantly less time than court cases.
There are advantages and disadvantages to choosing arbitration. For example, they take less time and are settled by a small group of knowledgeable people, opposed to possibly taking years and being decided by 12 average citizens who may or may not understand the case. However, arbitration is binding, so unlike in a court case, companies cannot appeal the decisions made through arbitration. There is no appeals court in arbitration. There are risks and rewards in both options.
Regardless of the path chosen to deal with possible lawsuits, construction companies need competent attorneys, who understand the construction industry and the laws that apply to that industry. Choosing attorneys that specialize in this area of law will ensure proper and aggressive representation. Construction law can be as complicated as any other area of law, and a construction attorney is the best route to choose.
When choosing an attorney, it is important to find a litigation attorney with plenty of experience winning cases. Before choosing a firm or attorney, ask about their case load, their past wins and loses, as well as the resources they have available to them. Attorneys should have the resources needed to investigate and research every aspect of the case to provide the most efficient defense against the accusations, which often involves employee experts, investigators, researchers, and more.
No construction company wants to deal with lawsuits. However, it is part of the business. Accidents happen and clients get unhappy. Instead of hoping you never get sued, you need to be prepared for if and when a lawsuit happens. The best way to prepare for that is to research law forms to know what your best options are for attorneys in your area that specialize in real estate, construction law, contract law, and other applicable areas.
The sad reality is that any company can be hit with a lawsuit whether it is deserved or not. Further, depending on the lawsuit and the outcome, it can bankrupt even a healthy company. It is essential to work with knowledgeable and experienced attorneys to work with you and your insurance companies to ensure your company is protected regardless of whether you go through the courts or through arbitration.
