Atlanta Construction Fraud Attorney Will Assist Clients

When people hire contractors to build or remodel their homes, they generally anticipate that the contractor will complete the work with due care, using the materials specified and strictly adhering to any applicable codes and standards. Unfortunately, not all people working in the construction industry uphold the duties imposed by contractual agreements or the law. Instead, some builders and contractors actively attempt to deceive homeowners by engaging in dishonest behavior. Fraudulent construction practices not only cause frustration and inconvenience but also typically result in significant financial losses. If you are the victim of such fraud. In that case, an Atlanta construction fraud attorney from Poole Huffman can advise you of your potential claims and help you pursue compensation from the parties responsible for your damages. We regularly aid people in litigation arising out of real estate disputes in Atlanta in Decatur, and Tucker.

Examples of Construction Fraud

Generally, construction fraud claims pertaining to the construction or remodeling of a home arise when a contractor represents that it will perform work in a specific manner or use a certain quality or grade of materials without intending to do so. The contractor makes such representations to induce the homeowner into paying for the services or goods promised without ever intending to deliver them. The contractor then benefits from the homeowner’s payment while offering inferior products or work. In some cases, the contractor will flee with the homeowner’s money without performing any work. Construction fraud may also arise after a project is completed. For example, a contractor could advise a person that a property is in sound condition, despite knowing that it suffers from critical construction issues, like a cracked foundation, in order to convince the person to buy the building. Learn more about your potential claims by speaking with an Atlanta construction fraud attorney in the Atlanta area.

Pursuing Construction Fraud Claims

Unlike claims arising out of negligence, claims arising out of deceitful behavior in the remodeling or construction of a home include an element of intent. In other words, a plaintiff alleging a construction fraud claim in Georgia must show that the defendant either concealed a material fact or made a false representation and that the defendant knew that doing so was wrongful. The plaintiff must also show that the defendant made the misrepresentations with the intent to induce the plaintiff into entering into, acting, or refraining from acting. Finally, the plaintiff must prove that it relied on the defendant’s statements, the reliance was justifiable under the circumstances, and that the plaintiff sustained damages due to the defendant’s actions.

In sum, it is not sufficient for a plaintiff to merely demonstrate that the defendant breached a provision of a construction contract or negligently constructed a property. Instead, the plaintiff must produce evidence that demonstrates that the defendant lied to the plaintiff in order to obtain his or her business and that the defendant never intended to convey the goods or services promised. An Atlanta construction fraud attorney serving clients in Atlanta can assist you in determining what evidence you will need for your claim.

Compensation Recoverable for Construction Fraud

Plaintiffs that successfully demonstrate fraud may be able to recover compensatory damages, which aim to reimburse them for the financial harm caused by the defendant’s actions. In cases in which the defendants’ behavior is deemed especially offensive, plaintiffs may also be able to recover punitive damages, which essentially are designed to punish wrongdoing.

Warning Signs of Contractor Fraud

Construction fraud often flies under the radar in the early stages. However, there could be subtle signs that something is wrong if you look closely. Some notable red flags include:

Vague or Incomplete Contracts

A legitimate contractor should provide a written agreement that clearly outlines the scope of work and other important details. There should be no ambiguity regarding issues such as the payment schedule, the cost of materials, and, particularly, the overall timeline. If the contract is vague or poorly drafted, it could be a deliberate attempt to create room for fraud.

Excessive Upfront Payments

While deposits are standard in the construction industry, demanding huge payments before work begins may be a sign of bad faith. This is especially true if the contractor refuses to provide a set of firm project milestones. Fraudulent contractors often collect funds up front and then disappear or divert those funds to other projects.

Cost Overruns

Unexpected changes can occur in any project, but a steady stream of change orders and cost overruns without explanation is never a good sign. In some cases, this may be an attempt to inflate the final cost beyond the original agreement. Be wary if you’re pressured to approve changes without a clear reason.

Disappearing Crews

Inconsistent labor or prolonged inactivity may indicate deeper issues with your contractor. If they are experiencing cash flow problems or overbooking, you could be the one who ultimately pays the price. A reputable contractor will keep you informed and maintain a steady work pace throughout the life of the project.

Inflated Invoicing

Invoices that lack detail, duplicate charges, or use ambiguous language can be used to conceal fraud. Always request itemized billing and confirm material costs and subcontractor payments with receipts or third-party verification.

Gathering Evidence in Construction Fraud Cases

In construction fraud cases, the strength of your evidence can determine whether or not you recover the compensation you deserve. Whether you’re seeking to recover lost funds or attempting to stop a fraudulent scheme in progress, organized documentation is key. Here are some common pieces of evidence used in these cases:

Contracts

Start with all written agreements, including the initial contract, project proposals, and any signed change orders. These documents establish the agreed scope of work, pricing, and timelines. Any deviations can be used to demonstrate bad faith or misrepresentation.

Payment Records

Collect proof of all payments made, including canceled checks or wire transfer confirmations. Compare these with invoices to identify overcharges or other transactions that do not add up.

Photos

Photograph the job site regularly, especially areas of concern. Visual evidence of unfinished work, poor materials, or safety issues can be powerful in court. Keep a project log noting when workers were present, what was done, and any delays or incidents.

Communications

The communication between you and your contractor could be the key to winning a fraud case. Save all emails, text messages, voicemails, and written notes exchanged with the contractor. These could reveal that you are the target of fraud or otherwise identify the contractor’s attempt to treat you unfairly.

How an Atlanta Construction Fraud Attorney Can Help in a Construction Fraud Case

If you suspect you’ve been the victim of construction fraud, hiring an Atlanta construction fraud attorney is one of the most important steps you can take. Fraud cases are often complex, as they can involve muddled contract terms and brazen financial misrepresentations. An attorney can help you cut through the confusion and build a clear, evidence-backed legal strategy.

First, your attorney will thoroughly review your contract and all other documentation related to your project. This includes the following:

• Agreements
• Change orders
• Written communications
• Regulatory reports
• Payment records

They can help organize your documentation and, if necessary, work with you to strengthen your case. Your attorney can also draft and send demand letters in an effort to settle on your behalf. When negotiations fail, they can take on every phase of litigation, from filing a lawsuit to appearing on your behalf in court.

Additionally, an attorney can represent you during settlement negotiations in an effort to secure the outcome you deserve. These cases frequently settle without the need for a trial, but getting a fair offer can be more difficult than you might think.

Most importantly, an Atlanta construction fraud attorney protects your rights every step of the way, helping you avoid costly mistakes and pursue the maximum recovery possible. When fraud threatens your investment, legal guidance can make the difference between loss and justice.

How Settlements and Verdicts Work in Construction Fraud Cases

You generally have two options for securing a positive outcome in a construction fraud case. Your attorney may be able to negotiate a settlement on your behalf, or they may take your case to trial and win a verdict. Either of these options can lead to the results you deserve.

Settlements involve two or more parties agreeing to resolve a construction dispute instead of taking the case to trial. There are often extensive negotiations between the parties, which can last months in some cases. It is not uncommon for a settlement to conclude in the days or hours leading up to the trial date.

A settlement may include several remedies, like the repayment of stolen funds or the termination of the contract with no further obligations. The advantage of settling is that it is typically faster and more cost-effective than going to trial. While there is less risk, you may end up accepting a resolution that is below the full value of your claim.

If settlement efforts fail, the case proceeds to trial. There, a judge or jury hears evidence and decides whether fraud occurred. A final verdict might be more than any offer the other side has made, but there is also the risk that you walk away with nothing. An Atlanta construction fraud attorney can help you weigh your options and determine the best path forward.

Frequently Asked Questions (FAQ)

What is the deadline to file a construction fraud claim in Georgia?

Generally, the statute of limitations is four years, but it can vary based on specific factors. It is always best to speak to an Atlanta construction fraud attorney regarding any legal deadlines.

Can I still sue if the contractor is bankrupt or out of business?

You have the right to sue, but there may not be any assets to cover your judgment.

Is fraud a criminal or civil matter?

Fraud can be both a criminal and a civil matter. While the police and prosecutors are in charge of any criminal case, you have the power to bring a fraud lawsuit in civil court on your own terms. 

Contact an Atlanta Construction Fraud Attorney To Help Pursue Your Claim

Parties that build and remodel homes are expected to do so with due care and sound materials, but some people and entities involved in the construction business actively attempt to deceive homeowners regarding the quality of their work by engaging in fraudulent practices. If you suffered financial losses because of construction fraud, you should meet with an Atlanta construction fraud attorney to discuss your options for seeking compensation. We at Poole Huffman are proficient at aiding those harmed by dishonest business practices in the pursuit of damages, and if you engage our services, we will fight tirelessly to help you protect your interests. We frequently represent people in real estate disputes in Atlanta, Decatur, and Tucker, where we have an office. We also aid parties in real estate matters in cities throughout Fulton, DeKalb, Cobb, and Gwinnett Counties. Contact our Atlanta construction fraud lawyers at 404-373-4008 or via our online form to schedule a confidential meeting.