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  1. Home
  2. Construction Contract Dispute in Washington, D.C.: Contract Termination and Owner Remedies

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Construction Contract Dispute in Washington, D.C.: Contract Termination and Owner Remedies



A Washington, D.C.–based real estate development company entered into a construction contract with a local builder for the erection of a five-story commercial building. 

 

The owner(client) initially relied on the contractor’s building elevation plans and paid a substantial deposit intended for material procurement. 

 

However, the contractor repeatedly delayed construction, demanded additional funds, and delivered substandard and incomplete work.

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1. Construction contract Washington D.C. — Background of the Development Dispute


Construction contract Washington D.C. — Background of the Development Dispute

 

The owner executed the construction contract after reviewing architectural renderings and approving the scope of work. 

 

Despite receiving approximately USD 400,000 in deposits and supplementary payments, the contractor failed to make reasonable progress and delivered defective workmanship.


The owner was operating another project out of state, which limited direct oversight. 

 

The contractor exploited this distance by offering excuses for delays while requesting repeated additional payments. 

 

Even after multiple payments were made, structural work, plumbing, interior finishing, and waterproofing remained incomplete.


Site inspections later revealed severe defects, including unstable framing, unfinished walls, improper pipe installation, and active water intrusion throughout multiple levels. 



2. Construction contract Washington D.C. — Legal Strategy and Framing of Claims


Litigating a construction contract dispute in Washington, D.C. requires aligning the factual record with statutory and common-law principles governing breach, damages, and termination. 

 

Our legal team developed a targeted strategy combining documentary evidence, photographs, payment logs, and communication records.

 

To establish the contractor’s liability under D.C. contract law, counsel submitted:

 

Under District of Columbia law, a material breach occurs when a party fails to perform essential obligations, rendering the contract’s purpose unattainable. 

 

By proving extensive delays, abandonment of the project, and poor workmanship, the owner established clear statutory grounds for termination of the construction contract.


Counsel emphasized that the contractor exceeded the agreed completion date by nearly a full year, violating the fundamental expectation of timely performance.



Demonstrating Good-Faith Efforts to Avoid Termination


The owner made multiple attempts to preserve the relationship and avoid litigation. 

 

Evidence included two separate supplementary payments requested for “material shortages” and several deadline extensions granted at the contractor’s request.


These concessions showed that the owner acted reasonably and in good faith, a critical factor when seeking judicial approval of construction contract termination.

 

Presenting this record supported the argument that termination was not premature but rather necessary due to the contractor’s persistent non-performance.



3. Construction contract Washington D.C. — Remedies and Judicial Findings


Construction contract Washington D.C. — Remedies and Judicial Findings

 

In Washington, D.C., an owner may terminate a construction contract when the contractor fails to perform or engages in misrepresentation. 

 

Courts typically evaluate whether the breach is substantial and whether the non-breaching party sought reasonable alternatives before terminating.

 

After reviewing the evidence, the court affirmed the owner’s right to terminate the construction contract. 

 

The court concluded that:

  • The contractor materially breached contractual obligations
  • The owner provided ample opportunities to cure defects
  • Payments made were disproportionate to completed work
     

The ruling allowed the owner to disengage from the fraudulent builder and pursue damage recovery, including repair costs, delay damages, and potentially the return of misappropriated funds.


This case demonstrates that proper documentation, site inspections, and proactive legal strategy are essential when confronting construction fraud or abandonment.



Key Lessons for Developers and Property Owners


Construction disputes can escalate quickly, especially when delays, cost overruns, or misrepresentation arise. 

 

Washington, D.C. law provides strong protections for property owners who encounter contractor deceit or grossly defective work.

 

Developers entering a construction contract in the District should consider the following safeguards:

 


When a contractor repeatedly fails to meet obligations, termination may not only be justified but essential to preventing escalating financial losses.


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The information provided in this article is for general informational purposes only and does not constitute legal advice. Reading or relying on the contents of this article does not create an attorney-client relationship with our firm. For advice regarding your specific situation, please consult a qualified attorney licensed in your jurisdiction.
Certain informational content on this website may utilize technology-assisted drafting tools and is subject to attorney review.

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