Understanding Philadelphia Commercial Construction Project Risks
Starting a commercial construction project in Philadelphia comes with many legal risks that must be properly managed to avoid delays, fines, lawsuits, and other headaches down the road.
The construction lawyers at Davis Bucco & Makara have extensive experience helping contractors navigate payment disputes. Call today at 610-238-0880 for more information.
As an experienced construction real estate lawyers in Philadelphia, we have seen these 10 issues trip up many contractors and developers in 2024:
Failing to Pull Necessary Permits
Philadelphia has stringent permitting rules for construction projects. Skipping steps or failing to keep permits current with project changes can lead to stop work orders, zoning and code violations, fines, and even needing to undo finished work. Work closely with the Philadelphia Department of Licenses and Inspections to make sure you pull all required permits.
2. Violating Zoning Ordinances
Make sure your architect reviews all project plans to confirm your building complies with Philadelphia zoning codes for aspects like maximum height, setbacks, parking, landscaping, and permitted uses. Zoning violations can scuttle entire projects.
3. Encroaching on Neighboring Properties
Comply with Philadelphia codes regarding safeguarding adjacent properties during excavations, protecting shared walls, controlling dust and noise, properly disposing of materials, and preventing flooding or damage to nearby buildings. Violations put neighbors’ safety at risk and bring lawsuits.
4. Inadequate Site Safety and Security Practices
All construction sites in Philadelphia must follow safety rules on issues ranging from fall protection and trenching to hazardous materials handling and equipment operation. Lax practices endanger workers and the public, bringing OSHA fines and liability claims. Properly securing sites also reduces vandalism and theft risks. It is important to discuss all construction projects and safety measures with your construction lawyers.
5. Failure to Pay Subcontractors and Suppliers
Pay subcontractors and building supply vendors according to contract terms to maintain positive relationships, avoid mechanic’s liens on the property, and prevent work stoppages or supply delays that affect the schedule.
6. Defective Construction Methods or Materials
Shoddy construction quality leads to high correction costs, lawsuits by owners and occupants, and damage claims against contractors and architects long after projects finish. Vet subcontractors thoroughly, inspect work continually, and choose designs and building methods that reduce defect risks. Contact a construction attorney that understands Philadelphia construction laws.
7. Insufficient Insurance Coverage
Carry adequate general liability, builder’s risk, workers compensation, and specialty insurance policies with high enough limits to cover injuries, accidents, weather delays, materials theft, design errors, and other project risks. Update coverage as needed when project designs change.
8. Failing to Document Change Orders Properly
Get every project change order or contract modification approved by the owner in writing to avoid disputes over unexpected costs or billing changes. Erratic documentation causes payment arguments and hurts client relationships.
9. Not Planning for Delays
Build contingencies for bad weather, supply shortages, labor disputes, financing issues, and other unpredictable delays into the master schedule. Seek contract clauses letting you recover costs related to events beyond your control. Staying on-schedule avoids fines and keeps clients happy.
10. Skipping Necessary Contract Terms
Ensure construction contracts clearly specify project scope details, material quality standards, change procedures, allowable subcontracting, insurance requirements, indemnification clauses, dispute resolution approaches, construction attorney fees recovery terms, and contingency planning procedures. Ambiguous or incomplete contracts spawn conflicts.
Frequently Asked Questions:
1. What permits do I need to start construction in Philadelphia?
Common permits include building, electrical, plumbing, mechanical, use & occupancy, demolition, fire protection, zoning, and streets department permits for aspects like scaffolding. Requirements differ by project.
2. When do I need independent soil testing before excavation?
Soil testing is required before excavations deeper than eight feet to check for adequate load-bearing capacity and prevent collapses. Testing is also needed near SEPTA tunnels, basements, or retaining walls.
3. What safety practices prevent construction injuries?
Require fall protection above six feet, trench shields beyond five feet deep, hazardous materials training, tool guards, eye and hearing protection, safe equipment use policies, accident reporting, and site security measures.
4. Who pays for mistakes or changes orders?
Contracts should clearly state whether owners or contractors pay for changes not due to contractor fault. Good documentation also defuses arguments over responsibility.
5. What happens if I fall behind schedule?
Review force majeure contract clauses covering late finishes due to extreme weather, strikes, external delays etc. If penalties or fines are involved, proactively negotiate waivers or extensions with owners.
Choosing a Construction Lawyer in Philadelphia
Avoiding these common legal pitfalls takes diligence and experience. Contact our Philadelphia construction law attorneys for proactive guidance tailored to your next commercial project. Our insights help contractors and developers manage risks and liabilities throughout all construction phases. Call Davis Bucco & Makara at 610-238-0880 for a consultation today.