Breach of Contract in Construction: Legal Tools for Owners and Defenses for Contractors

When construction projects go off track, the finger-pointing usually begins with one word: breach. Did the contractor fail to deliver what was promised? Did the property owner interfere or refuse to pay? These questions are at the heart of construction defect litigation, where breach of contract claims often decide who bears the financial loss.

For property owners, breach of contract is often the most straightforward legal avenue to recover damages from unfinished, delayed, or defective work. For contractors, being hit with a claim can feel like an attack on their business, even when the issue wasn’t entirely their fault. Understanding how breach of contract claims work—and how they’re defended—is critical for both sides of the dispute. Let’s break it down.

What Exactly Is a Breach of Contract in Construction?

At its simplest, a breach of contract occurs when one party fails to uphold their part of the agreement. In construction, where contracts often run dozens of pages and cover everything from timelines to materials to payment schedules, disputes can pop up in many forms. Examples include:

• A contractor fails to complete the work by the agreed deadline.
• The property owner refuses to make timely payments.
• The contractor uses cheaper materials instead of what was specified.
• Work doesn’t comply with building codes or passes inspections.

The stakes are high because contracts are legally enforceable, and courts typically hold parties accountable to the letter of what’s written.

The Property Owner’s Perspective: Why Breach of Contract Matters

For property owners, a breach of contract claim can be the strongest legal tool available. Unlike negligence or fraud claims, owners don’t need to prove intent—they only need to show that the contractor didn’t do what the contract required.

Common Breach Issues for Owners

• Delays: Projects dragging on months beyond schedule.
• Defective work: Substandard craftsmanship or code violations.
• Substitution of materials: Lower-quality or cheaper products used without consent.
• Failure to complete: Walking off the job before finishing.

How Owners Should Protect Themselves

• Read the contract carefully before signing. Many disputes stem from vague language.
• Document everything. Take photos, keep inspection reports, and save all communications.
• Hire experts if needed. An independent inspector or engineer can strengthen your claim.
• Consult a construction attorney early. The sooner you act, the more leverage you’ll have in negotiations or litigation.

The Contractor’s Perspective: Defending Against Breach Claims

For contractors, breach of contract claims can feel inevitable in a complex project. However, not all claims have merit. Contractors have several potential defenses that can protect them from unfair liability.

Common Defenses

• Substantial Performance: If the work is mostly completed and defects are minor, the law may view the contract as fulfilled.
• Owner Interference: If an owner made frequent changes, delayed approvals, or blocked access, delays or issues may not be the contractor’s fault.
• Failure to Pay: An owner’s breach (like nonpayment) may excuse a contractor’s obligations.
• Scope Creep: When owners request additional work without proper documentation, disputes over performance can be challenged.

How Contractors Should Protect Themselves

• Keep meticulous records. Timesheets, receipts, and signed change orders are invaluable.
• Use clear contracts. Define scope, deadlines, and payment terms in writing.
• Communicate proactively. Document all delays or owner-requested changes.
• Work with an attorney. Legal counsel can help draft stronger contracts and mount effective defenses when disputes arise.

Remedies Available in Breach of Contract Cases

For Property Owners: If an owner wins a breach claim, they may be entitled to:

• Compensatory damages for the cost of repairs or completion.
• Rescission, which cancels the contract and requires repayment.
• Specific performance, which forces the contractor to finish the work.

For Contractors: If contractors successfully defend a claim—or bring counterclaims—they may recover:

• Unpaid contract amounts.
• Compensation for delays caused by the owner.
• Attorney’s fees, if allowed under the contract.

Why Legal Guidance Is Essential

Construction disputes are rarely black and white. Owners often feel they’ve been wronged, while contractors believe they’ve been unfairly blamed. Because contracts are the backbone of construction projects, both sides need skilled legal representation to interpret terms, build evidence, and argue their case.

At DuFault Law, we understand these disputes from both sides. We’ve represented property owners seeking to recover damages for defective work and contractors fighting to protect their businesses from inflated or unfair claims.

Final Takeaway

For Property Owners: A well-documented breach of contract claim can help you recover damages and avoid paying for defective or unfinished work out of pocket.

For Contractors: A strong defense—built on contracts, records, and legal strategy—can prevent unfair liability and protect your reputation.

No matter which side you’re on, one thing is clear: in construction defect litigation, breach of contract is often the battleground where the outcome is decided.

Need help with a construction breach of contract claim?

Don’t let a broken contract break you. Whether you’re a property owner dealing with costly construction defects or a contractor facing an unfair breach of contract claim, the stakes are too high to go it alone. At DuFault Law, we provide trusted guidance and relentless advocacy to protect your rights, your reputation, and your financial future.

• Call us at (239) 422-6400
• Email us at contact@dufaultlaw.com
• Or Visit our Contact Page to schedule a consultation