A Guide to Hiring a Construction Law Firm
The construction industry is the backbone of modern society. Every single building is created by the construction industry and therefore, it is an industry that affects everyone’s lives. Thus, hiring a construction law firm is a huge deal for so many construction companies and more.
In just a year of 2016 alone, the construction market in the United States had a value of $1,162 billion. Therefore, this construction industry is a huge market with a large profit. Markest with large profits have a lot to lose in the court of law. this alone makes hiring the right construction law firm a make or break situation for most business.
Per Texas law, a breach of contract claim must be filed within four years, unless the contract specifies two years. Lawyers need to look over these kinds of contracts before they ever sign on the dotted line. That way, they do not get into a bad situation. After all, there is so much money on the line with these large construction industry markets.
Builders risk coverage is written for a minimum one-year term to cover a new building or structure under construction or an existing structure undergoing additions, alterations, or repairs. As a result, these detailed risk coverage documents must be surveyed by talented lawyers. That way, a construction project is covered on all bases for the best possible process. After all, a construction law firm is going to really protect the companies from immediate legal danger.
In 1926, the merger of the Arbitration Society of America and Arbitration Foundation created the American Arbitration Association. Simply put, this association aims to offer resolutions for disputes to help prevent civil court proceedings. These civil court proceedings are very lengthy and costly in terms of money. Lawyers are not cheap and therefore, construction companies need to get the proper protection.
In 2015, the American Arbitration Association administered 551 construction industry cases with claims of $500,000 or more. The largest mediated construction case was for $2.6 billion, while the largest arbitration case was $96 million. The total value of all claims and counterclaims in 2015 was $5.5 billion. All of this money is no joke and needs to be taken seriously by construction companies.
If a dispute goes to civil court then it is really dangerous for their stocks and for their overall profitability. Therefore, getting legal protection from construction law firm and a litigation attorney goes a really long way. Thus, this should be a priority for every single construction company as they gear up for a new project.
According to the American Arbitration Association, alternative dispute resolution, or ADR, is the preferred conflict-management process in the construction industry. The median time frame from filing to award for 2015 construction arbitration cases was just 232 days or less than eight months. Alternative dispute resolution helps bring about a quick solution for construction companies. That way, they do not spend too much money or time out in courtrooms.
According to the American Arbitration Association, the largest case resolved by one arbitrator was a claim of $232 million. The smallest case, which was resolved by a panel of three arbitrators, was a claim for just $23,000. A huge claim of $232 million is hazardous for any business let alone a local construction company. As a result, the talents of a construction law firm are required to really protect construction companies from immediate economical danger.
Each and every single year, the construction industry continues to grow and develop. Therefore, the demand for the work of a construction law firm will only continue to rise as well. After all, the legal industry is a huge part of these construction companies and their projects all across the country. So make sure your company is protected by the talents of reputable and experienced lawyers!