Michael L. Feinstein, P.A.

Construction litigation can occur over lack of payment

Construction projects can often have their ups and downs, and not just in terms of demolition and building. Some contractors may agree to work on projects only to face difficulties, such as lack of payment, that result in them having to delay work or stop completely. In some cases, construction litigation may take place in efforts to work toward owed compensation.

Florida residents may be interested in such a case occurring in another state. Apparently, a construction company was hired to demolish an old hospital in order to build new housing on the site. However, a considerable portion of the hospital still stands because the construction company refuses to continue working on the project. The reasoning behind this walk-off is that the investment firm that hired the construction company owes $1.6 million.

The company was reportedly owed $2.7 million and only received $1.1 million of that amount. The construction company filed a legal petition in efforts to obtain payment, and in the meantime, the investment firm indicated that a new company was hired to continue working on the demolition. At the time of the report, no additional work had taken place at the site.

Lack of payment is a major issue for construction companies and other businesses. If Florida contractors believe that they have not received their due compensation for working on projects, they may find it in their interests to consider taking legal action. Construction litigation may seem like an intimidating step to take, but it may prove necessary if businesses have not received their owed payment.

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