Are you in the construction industry? If so, you have likely experienced an instance or two when something went wrong the contract agreed upon between your company and the other individual or company you were working for at the time. When this happening, you may or may not have tried to hire one of the best attorneys in the area. Depending on what type of litigation attorney you hired, it may have helped your case. This is why it is crucial to always research and find the right construction lawyer if an issue develops with your contract.
Interested in learning facts about the construction industry and how arbitration cases are typically handled in the United States? Keep reading for more information on why finding the right attorneys can make the difference in your case.
Interesting Facts About the Construction Industry
1. As of 2016, the construction industry in the United States alone was work around $1,162 billion.
2. The workforce has actually decreased in the construction industry throughout the last few years. In fact, statistics show that more than 40 percent of employees lost their jobs between April 2006 and January 2011 in the construction space.
3. Some construction companies are venturing into 3D printing to make better use of money, materials, and time. One of the main ways in which the industry is using 3D printing is to print things like concrete materials.
4. Construction companies and builders need to rely on builders risk coverage to assist when working on new construction. This can help protect them during the process of building, altering, or repairing a structure. If anything were to happen to the structure during the construction process like theft or vandalism, this may help provide some insurance.
Instances of Construction Arbitration Cases in the United States
Not only do construction companies need to rely on new tools like 3D printing to save money and builders risk coverage to protect them, but also they need to know when to hire the right type of attorneys in potential arbitration cases. When a construction company has signed a contract with another party to build or repair a structure, an issue may develop with the contract.
For example, the other party may believe the construction company is taking longer than necessary to complete the project. This may be increasing the cost of the project by requiring more hours of work and more money spent on materials. The other party may threaten to break the contract or try to adjust the contract.
This may require both parties to hire attorneys to assist with coming to an agreement to the end the dispute. Each party can work with a lawyer to head into arbitration. The construction company may want to search for a construction law firm because they will best know how to prepare for this case.
In 2015 alone, the United States had more than 551 construction arbitration cases, according to the American Arbitration Association. For these cases, the individual claims equaled $500,000 or more each time. In some instances, the cases were mediated. The largest mediated case in the construction industry was for $2.6 billion. Other times, the cases required arbitration. In these cases, the largest was for $96 million. For all claims and counterclaims in 2015, the total value was $5.5 billion.
As this data shows, heading into mediation or arbitration to resolve construction industry cases is not cheap. This is why it is very important to make sure all parties agree on the contract and that both parties work hard to stay on the same page about costs and expectations throughout the building process. That way, it can help reduce the potential for issues, disagreements, and court cases down the road.