Knowing when a party fails to perform an obligation on a construction project is relatively easy; unsatisfied expectations will manifest. However, knowing whether those unsatisfied expectations are enough to legally prove a claim for breach of contract is sometimes challenging.
In California, to legally establish a claim for breach of contract a party must generally prove: (1) the existence of a contract; (2) their own performance or excuse for nonperformance; (3) that all the conditions required for the other party’s performance occurred; (4) that the party breached that obligation; and (5) that damages have been proximately caused by that party’s breach.
So, before the unsatisfied expectations begin to fester, a party may want to ask themselves whether there is an enforceable written or oral contract, whether they have done everything required by it in order to appropriately demand that the other party perform, whether the failure to perform was actually that party’s fault, and whether there is actual evidence of damages caused by the breach. If the answer to any of those questions is “no,” then it is unlikely that a party can legally establish a claim for breach of contract. However, there could be alternative claims to help achieve their objective, such as quantum meruit, among others.
Lastly, each contract is unique because there might be other project documents incorporated into it, or it could be subject to specific statutory requirements. Therefore, before taking any action which could have an adverse impact on a contractual relationship, it is important to fully evaluate the case’s factual circumstances and all applicable contract documents.