Originally posted 2015-09-28 09:00:20.

Construction is a zero sum game.  What do I mean by that?  I mean that even where you, a construction professional with a great construction lawyer, have reviewed and edited a subcontract presented to you or provided a well-drafted contract to the other party that contains an attorney fees provision, every dollar that you spend on litigation is a dollar less of profit.

Couple the fact that no construction company can or should bid or negotiate work with an eye toward litigation (aside from having a well written contract that will be enforced to the letter here in Virginia).  Particularly on “low bid” type projects, contractors and subcontractors cannot “pad” their bids to take into account the possibility of attorney fees, arbitration, or litigation.  Furthermore, the loss of productivity when your “back office” personnel are tied up dealing with discovery, phone calls, and other incidents of litigation that do nothing but rehash a bad project and increase the expense sap money from the bottom line.  While the possibility of a judgment including attorney fees may soften this blow, you are still out the cash. Continue Reading