Legal Question in Construction Law in Maryland

Re: Contract Breach

Construction contracts can be complicated and are also governed fairly tightly by both state and local laws. Such laws require certain disclosures, certain informative statements, very specific warranty requirements, performance standards, etc. -- plus some things are fobidden from being included in residential contracts. Additionally, there are licensing, code compliance, and other related requirements.

Unfortunately, there is very little advice that any attorney can give you without reading the actual contract that you have and considering your specific facts in light of the laws in your state and local jurisdiction.

I know this sounds like a cop out --- but it sounds as if you already KNOW the general information -- the specific legal information that you need can only be provided after a proper assessment of your facts in light of the applicable laws.

Please feel free if you would like to chat about setting up an appointment to review your materials.

Lawrence R. Holzman, Esquire

Joseph, Greenwald & Laake, P.A.

6404 Ivy Lane, Suite 400

Greenbelt, MD 20770

(301) 220-2200

fax (301) 220-1214

Disclaimer: Please note that the posting of this response is not intended to constitute legal advice. You should contact an attorney to obtain information applicable to your situation. This posting is not confidential or privileged and does not create an attorney/client relationship.

Re: Contract Breach

The "basic" contract that you think you have is more than basic. Any contract over a purchase of land and building of an improvement thereon must comply with an array of legal requirements. If the contract does not comply, certain remedies may lie.

A contract for performance that does not state a time for performance is typically imputed with a reasonable time. This "reasonable" time has many factors. Unless contracted otherwise, a contactor's supply of workman to perform under a contact is not a basis for non-performance. Most contacts of this type have clauses to address temporary labor shortages. But more importantly, it does not appear that your contractor is faced with a labor shortage that is outside of his control. What appears is that he is faced with a personal situation that has affected the cash flow of his business. If such is the case, there is no contact clause that legally excuses such a matter and keeps you bound for your reciprocal performance. A contact is just that, a contact for performance and not a contact for excuses.

If he does good work, he may be in demand. Your contract may not be providing him with as high of a profit margin as other contracts that he is performing under. If he has taken more work than he can complete, this is his problem.

As to the matter of incurring additional interest cost under the life of the loan, this is a matter that you may or may not be able to recover at a later time. Again, this all depends on the exact provisions in the contract with the builder. Depending on the size of the loan, there are many creative financing methods to address your long-term mortgage needs.

Having an attorney review of the builder's contract to discern any actions that you can take there under should be your first course of action. Please feel free to contact me if you would like to discuss. I am available for a reasonable fee to review your contract and to identify your legal options.

G. Joseph Holthaus III, Esq.

(410) 799-9002

(410) 619-5918 (voicemail)