Since Miami is such an attractive location, there will inevitably be a great amount of construction in the city. Businesses that wish to take advantage of tourism and the agreeable climate will seek to get a construction project going as quickly as possible. However, there are times when there will be a construction dispute or issues between the developer and the contractor. This might be due to a breach of construction contract or some other problem that can cause construction litigation. With the litany of factors that go into this industry, having legal protection is a must.
According to a recent report, a company from Brazil that sought to open a restaurant in Miami has filed a lawsuit against the firm it contracted to do the construction. It alleges that the company left the job - worth $4 million - and it led to a seven-month delay. The case was filed in January and states that $93,577 was paid by the restaurant for materials and services that the company kept for itself. In response, the construction company filed a lawsuit against the owner of the restaurant. In its case, it alleges that the company did not make its payments, did not make the site available for the work to be done and terminated the company's right to keep working. Breach of contract is alleged from both sides.
The restaurant company is leasing the property and came to an agreement for $3.7 million with the construction company. This was slightly more than one year ago. The amount rose to $4.3 million due to changes. The work was ongoing through September of 2016. After the disagreements with the owner, the work stopped after October. The restaurant company blames the construction company for the delay. This was set to be the first location for this particular restaurant in the U.S.
Construction can be complicated, particularly when it is done in the attempt to build a business. When there are high-end businesses trying to come to Miami and construction is expected to reach the millions of dollars, there are high expectations on both sides. If there are disagreements, it is not just a case of coming to a consensus and hammering them out. It can go beyond that, as it has in this case.
Source: constructionequipmentguide.com, "Coco Bambu Restaurant Owners and Construction Firm Locked in Litigation," Ina Cordle, Jan. 30, 2017