Commercial property development in Massachusetts involves various intricate processes, and a key aspect is the contractual relationships formed with contractors.
Unfortunately, there are instances where a contractor fails to meet the agreed-upon terms, leading to a breach of contract. In such situations, commercial property developers need to be aware of their options for resolution.
1. Review the contract terms
The initial step for a commercial property developer facing a contractor breach is to thoroughly review the contract terms. Understand the specific obligations and responsibilities outlined in the agreement. This can provide clarity on whether the breach is genuine and what remedies might be available.
2. Communication and mediation
Open communication is necessary in resolving contract disputes. Initiate a conversation with the contractor to discuss the issues at hand. Exploring mediation can also be beneficial. A neutral third party can assist in facilitating dialogue and finding common ground for resolution without resorting to legal measures.
3. Document the breach
Detailed documentation of the breach is a must for future actions. Record instances of non-compliance, delays or any other breaches with supporting evidence. This documentation can be valuable if legal action becomes necessary or if alternative dispute resolution methods are necessary.
4. Performance guarantees and bonds
Some contracts may include performance guarantees or bonds. These financial assurances can serve as a remedy for contractor breaches. Property developers can explore the option of invoking these guarantees to recover losses or complete the project through an alternative contractor.
When it comes to developing a property, time is money. If a contractor fails to perform, it could lead to expensive consequences. While taking legal action is often a last resort, 31,469 civil trial cases in 2023 involved contract disputes.
