The construction industry is constantly evolving, and with it come new legal challenges that can impact contractors, developers, property owners, and other stakeholders. As we move into 2024, staying ahead of construction law issues is crucial for avoiding disputes, maintaining compliance, and ensuring smooth project completion.

From contract disputes to supply chain delays and regulatory changes, understanding these legal risks can help you proactively address potential challenges before they escalate into costly problems.

In this guide, we’ll explore six major construction law issues you might face in 2024 and how to navigate them effectively.

1. Contract Disputes & Ambiguous Agreements

The Issue

Construction projects rely heavily on contracts, and poorly drafted or vague agreements often lead to disputes over scope, payment, and liability. In 2024, with continued market fluctuations and increased project costs, contract disputes are expected to rise.

Common Contract Disputes:

✔️ Scope of Work Conflicts – Unclear project responsibilities and deliverables.

✔️ Payment Delays – Owners withholding payments due to disputes over work quality.

✔️ Change Order Disagreements – Verbal agreements leading to conflicts over additional work and costs.

✔️ Project Delays – Disputes over contract deadlines and penalties.

How to Avoid Contract Disputes in 2024

  • Ensure clear and detailed contracts that outline responsibilities, timelines, and payment structures.
  • Always use written change orders with signatures from all parties.
  • Include alternative dispute resolution (ADR) clauses to handle conflicts through mediation or arbitration.
  • Work with an experienced construction attorney to review contracts before signing.

2. Supply Chain Delays & Rising Material Costs

The Issue

Supply chain disruptions continue to impact construction projects, causing delays in material deliveries and cost overruns. Contractors who fail to account for these risks in their contracts could face breach-of-contract claims or financial losses.

How to Protect Your Business

✔️ Incorporate Material Escalation Clauses – Allow for adjustments in pricing if material costs rise unexpectedly.

✔️ Plan for Delays – Build flexibility into project timelines to accommodate supply chain disruptions.

✔️ Communicate with Suppliers – Stay updated on potential shortages and secure materials early when possible.

✔️ Use Force Majeure Clauses – Protect against unforeseen events that could delay your project.

Having a construction lawyer review your contracts can ensure you are protected against financial risks caused by rising costs and delays.

3. Regulatory & Code Compliance Changes

The Issue

In 2024, new regulations related to building codes, environmental laws, and worker safety are expected to impact construction projects. Failing to comply with these regulations can result in fines, work stoppages, or legal liability.

Key Areas of Concern:

✔️ Stricter Environmental Laws – New green building regulations and emissions standards.

✔️ OSHA Safety Updates – Revised workplace safety protocols and enforcement actions.

✔️ Building Code Changes – Local and state governments updating fire safety, accessibility, and energy efficiency standards.

How to Stay Compliant in 2024

  • Monitor changes in local, state, and federal regulations to ensure compliance.
  • Consult a construction law attorney before starting new projects.
  • Maintain proper documentation of safety training, permits, and environmental impact assessments.
  • Work with code compliance experts to review project designs before submission.

Ignoring new regulations can lead to costly delays and legal consequences—stay proactive to keep projects on track.

4. Labor & Employment Law Challenges

The Issue

The construction industry faces ongoing labor shortages, wage disputes, and evolving worker classification rules. Employers who misclassify employees or violate wage laws could face lawsuits, penalties, and reputational damage.

Potential Legal Issues:

✔️ Worker Misclassification – Contractors vs. employees under changing IRS and Department of Labor rules.

✔️ Prevailing Wage Disputes – Public projects requiring compliance with minimum wage laws.

✔️ Union Conflicts – Increased labor organization efforts in the construction industry.

How to Manage Labor Law Compliance

  • Properly classify workers to avoid penalties and lawsuits.
  • Keep detailed payroll records to ensure compliance with wage laws.
  • Provide proper OSHA safety training to minimize workplace accidents and liability.
  • Work with a construction lawyer to ensure employment agreements meet state and federal labor laws.

Failure to follow labor laws can result in fines, lawsuits, or project shutdowns—staying compliant is critical.

5. Construction Defects & Liability Claims

The Issue

Defective work claims are one of the most common construction law disputes. Whether due to poor materials, design flaws, or workmanship issues, contractors and developers can face lawsuits demanding costly repairs.

Common Defect-Related Claims:

✔️ Structural Failures – Weak foundations, cracked walls, or unstable structures.

✔️ Water Intrusion & Mold – Improper waterproofing leading to damage.

✔️ Mechanical & Electrical Failures – HVAC, plumbing, or wiring problems.

How to Protect Your Business

  • Use ironclad warranties and clear defect liability clauses in contracts.
  • Keep detailed project records to defend against claims.
  • Ensure subcontractors are properly insured and licensed.
  • Have a construction attorney draft contracts that limit liability exposure.

Legal disputes over defects can result in millions in damages—having a strong legal strategy is essential.

6. Payment & Lien Disputes

The Issue

Delayed or missing payments continue to be a major legal challenge for contractors, subcontractors, and suppliers. In 2024, with economic uncertainty and rising project costs, payment disputes are expected to increase.

Common Payment Disputes:

✔️ Late Payments – Owners delaying contractor payments.

✔️ Mechanic’s Liens – Contractors filing liens due to unpaid work.

✔️ Change Order Disputes – Conflicts over additional work costs.

How to Secure Your Payments

  • Use detailed payment schedules and clearly defined invoicing procedures.
  • File mechanic’s liens promptly if payments are overdue.
  • Require lien waivers before releasing payments to subcontractors.
  • Work with a construction lawyer to enforce contracts and recover unpaid funds.

Failure to protect payment rights can cripple cash flow and threaten project viability—ensuring legal safeguards is critical.

Reach out to SJJ Law today to get started!