Analysis of Construction Claims and Damages in Birmingham AL

It seems that more and more construction projects and real estate deals in today’s current economic climate are falling into financial traps. When parties fail to understand the terms and conditions stated in their contracts before signing, disputes involving construction claims and damages in Birmingham AL can arise and may end up in court.

Construction Liens Law in the State of Alabama

Alabama law states that any party performing work or services to any structure or building is entitled to assert their legal rights and claim a lien against the improved property, but in doing so are legally compelled to provide notice to all other concerned parties.

A verified liens pertaining to construction claims and damages in Birmingham AL must be filed by the original party or parties within six months of the last installment of work, labor or material.

Types of Damages Relating to Construction Claims

  • Breach of Contract: Such claims should return the awarded party to their position prior to the violation of the contract. Additional amounts may be awarded in cases where profit would have been reasonably ascertained.
  • Faulty Construction: A homeowner may seek litigation in instances where a contractor’s failure to complete the work to a standard results in a difference of value between the fair market estimate and the value of the property as it was constructed.
  • Mental Anguish: Alabama state law allows individuals to bring claims for mental anguish in regards to damages sustained by breaches of contract or breaches of warranty related to the home.
  • Prejudgment Interest: Alabama recognizes instances where liquidated claims show an amount of damages that could have been reasonably ascertained and where damages are at known standards of value fixed at a particular point in time.