When you enter into an agreement with a contractor to build or renovate property, you expect the contractor to live up to their end of the bargain. You expect the work to be done on time, on budget and to your satisfaction.
But, what if the contractor violates your agreement? What if the contractor uses poor-quality materials or provides substandard labor? What if your project gets delayed – or worse, if it does not get finished at all?
Taking Legal Action Against Contractors in the Dominican Republic
In many circumstances, when a contractor violates a project agreement, the first step should be to attempt an amicable resolution. Perhaps the contractor’s violation was unintentional. Or, maybe you can work through the issue and get the contractor (and your project) back on track. Whatever the case may be, understanding both (i) what went wrong and (ii) why it went wrong will be important to making smart decisions about enforcing your contractual rights.
If the contractor refuses to meet their obligations voluntarily, you may be forced to take your contract dispute to court. When preparing to litigate a breach-of-contract case involving a real estate development project, here are some key questions to keep in mind:
1. What does your agreement say about “cure” periods?
One important issue to consider is whether your agreement grants the contractor an “opportunity to cure.” It is not unusual for agreements to include provisions that grant a breaching party the option to address any deficiencies (usually within a specific time period, such as 30 days) and avoid legal action by the non-breaching party.
2. What does your agreement say about methods of dispute resolution?
If you are within your contractual rights to take legal action, what does the agreement say about dispute resolution? Real estate and construction contracts will commonly include provisions that require the parties to attempt mediation or arbitration before resorting to the courts. If your agreement includes an alternative dispute resolution (ADR) provision, it may be worth asking whether the provision is legally enforceable as well.
3. Is there a time limit for asserting a claim for breach or default?
In addition to requiring mediation or arbitration, your agreement could also specify a “limitations period,” after which you will be barred from taking legal action. Any time a contractor violates a project agreement, it is essential to promptly review the agreement and make sure you know how long you have to assert your rights—whether through ADR methods or in court.
4. Should you seek to engage a substitute contractor?
This can be a surprisingly difficult question. Knowing whether you should hire a substitute contractor after a breach requires a careful assessment not only of your own rights under your current project agreement, but the contractor’s rights as well. Is the violation clear-cut and justifying of termination? Or, is it possible that the contractor could prevail in your dispute and seek to enforce the terms of the agreement? It will be important to assess these types of questions before you make any decisions in the wake of a contractor’s violation of a project agreement.
Speak With a Real Estate Litigation Attorney at The Del Carpio Office
If you are dealing with a contractor’s breach of agreement in the Dominican Republic and would like to discuss your situation with an attorney, contact The Del Carpio Office. To schedule an initial consultation at our office in Santo Domingo get in touch online today.