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Business litigation often arises over construction contracts

Georgia businesses have many different types of contract disputes that sometimes end up in court litigation. One area of prolific lawsuits often involves small or middle-size construction companies that have obtained a contract to construct or repair a public property. One recent example of a case that may resort to business litigation involves a contract for a company to construct a taxiway at a local airport. The City Commission controlling the project voted recently to declare the contractor in default of the contract.

The city already put out for bids to finish the work and awarded the new contract to the second lowest bidder. The city declared that the original contractor, JMMC, had failed to complete enough work to be done by the November deadline in the contract. The president of JMMC said that he had not even been given the information on the meeting in which the contract was passed over for a new one. He stated that the city’s interpretation was incorrect and that the company did not breach the contract.

The airport director stated that delays on the taxiway put other projects in jeopardy and could not be tolerated. However, JMMC, asserted that the delays were caused by the city itself. The airport director countered that JMMC tried to perform the project without sufficient staff, equipment, materials and management resources. The city claims that it will take $200,000 plus to get the project back on track.

There are many reasons why a dispute may arise over a construction contract. In Georgia, such disputes are relatively common and are often taken through the business litigation process prior to resolution. When a case does not settle and is not dismissed after all business litigation procedures are completed, the case will be decided by a jury trial or a trial before a judge.

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