In the business world, things can change in an instant for Miami business owners. Whether it is due to external forces like the market conditions or internal conditions like things going on within the business itself, there are any number of reasons why the business climate can change for the better or for the worse.
The construction industry is no different from other segments in this respect. Indeed, the construction industry may be more prone to these issues than other industries.
For instance, South Florida developers saw a hit during the final months of 2015 in the residential development market. Due to factors like the lower price of oil and volatile stock markets, there was a reduction in the sales of houses and condos. Meanwhile, in January of this year, non-residential construction took a hit.
While the numbers impacted many potential construction projects, more money was still spent on South Florida construction during this time than anywhere else in the country. Moreover, a new report shows that residential construction picked up in January of this year, as there has been a 13 percent jump in construction compared to January of last year.
The up-and-down turmoil of the market frequently leads to construction litigation between different parties. For instance, a project that is stalled may result in unpaid contracts between the owner, developer and subcontractors.
On the other hand, when there is a boom in the market, there may be more deals entered into between different entities as projects develop. Even in good times, there can be disputes as to the language of these contracts or other related issues that result in the natural course of business. Accordingly, it is vital that businesses protect themselves, both at the time they enter into deals with other companies and when disputes arise.
Source: The Real Deal, “Residential construction picks up for SoFla in January,” Sean Stewart-Muniz, March 31, 2016