How real estate attorneys can help project owners avoid delays, defects, and disputes
Brad Porter, Managing Partner and Owner
Porter Law Firm
Real estate development projects can be exciting undertakings for investors, builders, and other stakeholders, but it’s certainly possible for complications to arise. Projects of this nature often encounter hurdles related to miscommunications, unclear contracts, construction defects, or other causes, but these can be easily cleared by partnering with an experienced attorney early in the process.
There are, in fact, many steps that real estate attorneys can assist with, in order to help project owners find success.
From the get-go, attorneys can help owners understand the complexities of their construction agreement to avoid unwanted surprises down the road. Negotiating these agreements before the project begins ensures everyone is clear about their responsibilities.
Once the project is underway, delays can be common, ranging from regulatory or approval obstacles, supply chain issues or labor shortages, or contractor performance issues, to coordination or communication challenges. The exact causes and impact of these delays can vary greatly, but having an attorney involved from the beginning can help mitigate or even prevent these hold-ups. For instance, developers may sometimes face unexpected regulatory hurdles midway through a project, causing significant lags. But with the help of an attorney, all stakeholders can be briefed in advance on locally-relevant regulations, so that none of them are surprises.
Another type of mid-project complication is the construction defect. There can be numerous such defects – including problems with the building envelope, a poorly laid foundation, plumbing errors, or water intrusion – that can cost potentially millions to rectify, depending on the project’s size and scope. Attorneys can play a crucial role in such a circumstance by collaborating with third-party experts who can inspect the site and identify potential problems early on. If a construction issue leads to litigation, these experts can also gather information on-site to determine what happened and who is liable.
Speaking of litigation, attorneys who specialize in real estate see project-related disputes with some frequency, so they know the sort of minor issues that can turn into bigger problems without attention. When disputes arise, several steps can be taken. Initially, many contracts require all parties to participate in dispute-related discussions. Attorneys are often involved before this initial step, with the hope that these negotiations will lead to a successful resolution. If these initial negotiations are unsuccessful, the next step is mediation. If mediation fails, the next step is likely to be private arbitration or a public lawsuit. Before filing, owners or developers will rely on their attorney to gather evidence through the aforementioned third-party experts to fully understand the project’s issues: what went wrong, why it happened, and who is responsible.
While attorneys are best known for handling lawsuits, their expertise can be highly valuable to developers and owners during other stages of their projects, with the goal to keep them out of the courtroom and instead headed for their ribbon-cutting.
About Porter Law Firm
Founded in 2009, Porter Law is a Houston-based boutique law firm known for its extensive experience in real estate law. The firm advises on investing in a business, buying or selling commercial real estate, HOA law, construction matters, and planning for the next generation. For more, visit www.porterfirm.com
