Recuperating Lost Profits

When business owners take on a contract, they are also taking on the risk that there might be issues with the agreement. Usually, the contract process will go according to plan without any problems. But inevitably, there will come a time where the complications associated with a contract will manifest themselves. By that point, a contractor may have been the victim of a delay, defect or breach of contract that resulted in damages. At this point, it may be time to call legal counsel to decide what to do next. There are various forms of remedies for the impaired construction business in response to the delay, defect or breach of contract. One of the most prevalent remedies is the recuperation of lost profits damages. Another may be lost value damages, but the focus of this article will remain on lost profits.

If the decision is to proceed with a lawsuit, the first step is to contact legal counsel. Hire a damages expert to analyze the lost profits associated with the company’s impairment. There are many things a contractor can do at this time to help the case and to help the damages expert complete their analysis. They will be basing their analysis on objective, factual, reasonable and well-supported information, so It’s critical the business owner provides the necessary documentation and resources that will help the damages expert build the most credible analysis possible.