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Both private and public construction laws play an increasingly vital role in our society, especially in the construction industry at present and in the future. Today, every city is getting busier. The world is expanding because of technology and at the same time getting crowded because of the building industry.
You see big universities everywhere, gigantic commercial buildings in the urban areas, and astounding real estate developments. It’s hard to believe that they come out just right with all these constructions without encountering some problems and conflicts. A real estate developer cannot simply plan to construct buildings without anticipating any legal problems or possible disputes during or after the construction.
Thus, it’s vital to understand how the construction industry works and how construction laws can be applied to these problems. This way, all these predicaments will be dealt with smoothly without resorting to civil cases filing and undergoing rigorous legal processes.
More importantly, it’s always crucial to include construction laws in the construction contract and agreement because adherence will reduce these projects’ possible damage. And to know more about why abiding by these laws are important, check out these five reasons.
Facilitates Legal Processes
Before a construction project begins, there are various legal processes to be observed. They include planning, construction contracts, approvals, and licensing from the appropriate states or government agencies.
For instance, contracts and memorandum of agreements must be drafted following construction laws about liens, bond claims, and other payment clauses. This is to ensure payment to contractors who made monetary advancements to finish the project. Construction laws have set forth guidelines for these kinds of agreements to make the contract and binding to the parties.
More so, regulatory measures must be complied with before even beginning the construction project. This regulatory work pertains to securing permits, negotiating with licensing agencies, or gathering information and complete explanation regarding the building code requirements.
Without construction laws, you won’t be able to know all these requirements. Worse, the contractors, suppliers, and developers will find it difficult to even begin the project. However, if you’re an Australian resident, all these requirements will be easy and speedy to comply with because of SureScope Building Certifiers’ help.
Prevents Expensive Lawsuits
Another reason to comply with construction laws is that it prevents expensive lawsuits. There are several protocols to be followed in a construction business or building industry to avoid mishaps and accidents. For instance, fire protection standards must be observed. Otherwise, legal claims, claims for compensation, and expensive lawsuits will occur.
That is why if you don’t take into account these all-important construction laws, you won’t have any idea of what standards and protocols to observe. Chances are, you will end up wasting a lot of money for fixing all the damage and harm you might have possibly caused for not following these procedures.
Provides Various Legal Options
Of course, it is an ordinary occurrence that contractors are not paid with the agreed contract price if the client is not satisfied with the outcome. However, other clients only make up lame excuses for non-payment. Both scenarios cause so much stress to the contractors, and most of the time, drain their pockets.
When these issues arise, construction laws offer tangible solutions as these laws provide various legal options. Therefore, contractors and construction companies can depend on options such as suing for breach of agreements of contracts, placing liens on finished projects, and so much more. This way, their legal rights are protected, and they won’t stress themselves out looking for a solution to these financial disputes.
Avoids Defective Contracts
The first step to engaging in a construction project, aside from bidding and estimating the budget, is to prepare a perfectly valid and binding contract. The execution of the contract is the birth of any construction project. But if you are not meticulous and alert, you’ll end up blowing up your project and thereby wasting a lot of money, time, and resources.
Thus, construction laws help you avoid this from happening because these laws mandate that your construction contract be specific regarding terms and conditions. These contracts are more than general contracts. For instance, you need to incorporate arbitration clauses if you want to settle legal issues amicably. Or you can also add claim notice clauses and no damage for delay clauses for your protection.
Helps Deal with Employment Issues
Employment issues are another critical area of construction laws since hiring, firing, managing, providing a non-hostile environment, wage determination, and the like are very much present in the construction industry.
Thus, adhering to construction laws means creating policies and procedures that deal with said employment issues because understanding the construction laws helps you predict these problems.
The construction and building industry is a very complex area, but with the construction laws’ guidance and your adherence to it, you won’t go wrong. It will facilitate the completion of your construction project and will help you avoid unnecessary legal problems.