Construction contracts often include a lengthy inventory of requirements. Clients often demand specific results regarding the aesthetics of the finished project. They may even go so far as to require the use of specific materials.
Imported Italian bronze windows, stone countertops and hardwood floors can all be challenging to source at the quoted price, especially if there are supply chain disruptions or economic fluctuations while the project is underway. Do construction firms and general contractors need to worry about clients pursuing defect lawsuits in response to a material substitution?
Proper procedures limit litigation risk
Generally speaking, construction contracts should include clear provisions for material substitutions. Prompt communication with the client to advise them of issues with acquiring materials or changes in costs can limit the likelihood of the client objecting to a substitution after the fact. They can then choose whether to wait when there are supply chain disruptions or pay more when economic fluctuations have drastically increased the price of their preferred materials.
Prior approval from the client, ideally in writing, all but eliminates the risk of a successful construction defect lawsuit brought on claims of inappropriate material substitutions. However, if the client is not aware of the substitution in advance and the final product deviates from contract requirements, then litigation could be a concern.
Reviewing the initial agreement and any communications about supply chain or pricing issues can help clarify whether a client has grounds for a construction defect lawsuit. Companies accused of inappropriate substitutions may need support to prevent the financial consequences and reputation damage caused by a client lawsuit.
