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Construction litigation may result when projects are mismanaged

Many people in California need to hire contractors in order to complete construction projects, whether for personal or business reasons. In particular, business-related construction projects can be costly endeavors, and those hiring the contractors want to make sure that budgets are kept and agreements are followed. Of course, not every agreement goes as planned, and in some cases, construction litigation may be necessary to resolve issues.

It was recently reported that the Sacramento Kings have filed a lawsuit against the general contractor they are using to construct a downtown hotel. Apparently, the hotel opened in October of last year, but the project itself has not been completed as some of the condo units on the upper floors have not been finished. The Kings believe that mismanagement of the project has resulted in blown budget estimates, which were originally totaled at $148 million and have now reached estimates of $194 to $198 million.

In addition to the claims of mismanagement from the Kings, the contractor had already filed a construction lien against the Kings' development company for lack of payment. The lien was reportedly for $36 million in unpaid work. The contractor did not provide further comment for the report.

Construction litigation can be a tricky to navigate, but it may be necessary when major projects are on the line. If California residents and business owners feel that they may need to take such action due to issues with their construction projects, they may want to consider their legal options. Having their cases evaluated by knowledgeable legal professionals may allow them to determine their best courses of action.

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