Construction projects, by their very nature, are a complex web of promises and obligations. From timelines and payments to materials and workmanship, a detailed contract is the blueprint for a successful project. But what happens when one party fails to follow the plan? This is where a breach of the construction contract comes into play. While the fundamental principles are similar across the country, New York and Florida have their own specific laws and legal nuances.

The Foundation of a Breach of Contract Claim

Regardless of the state, a successful claim for a breach of contract generally requires proving four key elements:

1. A Valid and Enforceable Contract: There must be a legally binding agreement between the parties. This includes a clear offer, acceptance, and an exchange of something of value (known as “consideration”).
2. Performance by the Plaintiff: The party bringing the lawsuit must demonstrate that they fulfilled their obligations under the contract.
3. Breach by the Defendant: The other party failed to perform their essential duties as outlined in the contract.
4. Damages: The breach caused the plaintiff to suffer some form of financial loss or harm.

Common Breaches in Construction

In the construction industry, a breach can manifest in various ways. Some of the most common issues include:

• Failure to Pay: A property owner or general contractor failing to make timely payments to a contractor, subcontractor, or supplier.
• Defective or Incomplete Workmanship: A contractor performing work that does not meet the specified quality standards, building codes, or design plans.
• Project Delays: A contractor failing to complete a project within the agreed-upon timeline, causing significant financial losses to the owner.
• Use of Substandard Materials: A contractor substituting materials of lower quality than what was specified in the contract.
• Abandonment: A contractor walking off the job and leaving the project unfinished.

New York: Navigating the Empire State’s Construction Law

New York law distinguishes between minor and material breaches. A minor, or partial, breach is a slight deviation that doesn’t significantly impact the overall purpose of the contract. The non-breaching party must still perform their obligations but can sue for damages resulting from the minor breach.

A material breach, on the other hand, is a failure to perform a core obligation that essentially defeats the purpose of the contract. This can give the non-breaching party the right to terminate the agreement and seek damages.

A key concept in New York construction law is “substantial performance.” This doctrine applies when a contractor has completed most of the work, and the project is functional and usable, despite some minor defects. In such cases, the contractor may still be entitled to payment, minus the cost to fix the minor issues.

Key Legal Considerations in New York:

• Statute of Limitations: The statute of limitations for a breach of contract claim in New York is generally six years.
• Home Improvement Contracts: New York has specific regulations for home improvement contracts, including requirements for a three-day cancellation notice and the use of escrow accounts for advance payments.
• Mechanic’s Liens: Contractors and suppliers can file a mechanic’s lien on a property to secure payment for their work.

Florida: The Sunshine State’s Approach to Construction Disputes

Similar to New York, Florida law focuses on the distinction between material and non-material breaches. A material breach in Florida is a failure to perform a duty that is so essential that it substantially impairs the value of the entire contract. This allows the non-breaching party to stop their performance and sue for full damages.

Florida’s legal framework for construction is influenced by specific statutes, particularly Chapter 558, Florida Statutes. This law addresses construction defect claims and often requires the non-breaching party to provide pre-suit notice and an opportunity for the breaching party to cure the defect before a lawsuit can be filed.

Key Legal Considerations in Florida:

• Statute of Limitations: The statute of limitations for a breach of a written contract in Florida is five years, but it’s important to note that the statute of limitations for construction defect claims can be different.
• Florida Construction Lien Law (Chapter 713): This is a critical legal tool for contractors, subcontractors, and suppliers to protect their right to payment. It outlines strict requirements for notices and deadlines.
• Damages: Florida law typically seeks to award “compensatory damages” to “make the injured party whole” by covering the actual losses caused by the breach. The contract may also include “liquidated damages” clauses that pre-determine the amount of damages for specific breaches.

Resources for New York and Florida

If you are facing a construction contract dispute in either state, it is crucial to seek legal counsel from an experienced attorney who specializes in construction law.

New York Resources:

• New York State Attorney General: Offers resources and consumer information regarding contractors and home maintenance.
• NYC Bar Association: Provides information on how to prove a breach of contract and common defenses.
• New York State Unified Court System: Offers information on civil litigation procedures.

Florida Resources:

• The Florida Bar: Provides legal resources and information on various areas of law, including breach of contract.
• Florida Department of Business & Professional Regulation (DBPR): Offers a way to verify contractor licenses and file complaints.
• Florida Attorney General’s Office: Provides consumer protection resources related to contractors.

John Caravella Esq., is a construction attorney and formerly practicing project architect at The Law Office of John Caravella, P.C., representing architects, engineers, contractors, subcontractors, and owners in all phases of contract preparation, litigation, and arbitration across New York and Florida. He also serves as an arbitrator to the American Arbitration Association Construction Industry Panel. Mr. Caravella can be reached by email: John@LIConstructionLaw.com or (631) 608-1346.

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