Michael L. Feinstein, P.A.

Construction litigation stems from lack of payment for project

Hiring companies to perform certain duties or to complete projects is common. Often, contracts are drawn up that detail the terms of the business relationship, and agreements are made. Of course, not everyone abides by those terms, and not everyone chooses to act in an upstanding manner. As a result, when a company is not paid as agreed, construction litigation can result.

Florida readers may be interested in a lawsuit recently filed in another state. According to reports, a construction company was hired to perform work on a county law center. The owner of the construction company filed the lawsuit claiming that the construction manager on the project and the board of supervisors withheld money paid by the county that was supposed to go to the construction company.

The construction company owner indicated that the company is owed over $600,000. As part of the initial agreement for the project, the parties agreed that the money would be paid by the county to the construction management company, which would then distribute the appropriate funds to the contractors and subcontractors working on the project. The suit also stated that the construction company was asked to perform additional work and that poor management of the project resulted in the company facing substantial costs.

Not receiving proper compensation for a construction project is certainly frustrating, but it can also mean that a company loses funds needed to pay for supplies, labor and operational costs. As this case shows, some parties may need to take legal action in order to ensure that they receive the payment owed to them. Florida company owners facing this type of ordeal may wish to look into their construction litigation options.

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