{"id":898589,"date":"2021-03-24T10:37:02","date_gmt":"2021-03-24T16:37:02","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=898589"},"modified":"2021-03-24T10:37:12","modified_gmt":"2021-03-24T16:37:12","slug":"construction-contract-lack-of-time","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-lack-of-time\/","title":{"rendered":"That\u2019s A Goocher: SD Court Finds Enforceable Construction Contract Despite Lack of Time Component"},"content":{"rendered":"\n<p>Matthew DeVries | <a href=\"https:\/\/www.bestpracticesconstructionlaw.com\/2021\/03\/articles\/legal-trends\/goocher\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Best Practices Construction Law<\/a><\/p>\n\n\n\n<p>What\u2019s a goocher?\u00a0 If you saw the movie,\u00a0Stand By Me, then you know exactly what I mean.\u00a0 And there are times when parties to a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/aia-construction-contracts\/\" target=\"_blank\" rel=\"noreferrer noopener\">construction contract<\/a> face a goocher.\u00a0 Here\u2019s what I mean\u2026<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/www.bestpracticesconstructionlaw.com\/wp-content\/uploads\/sites\/850\/2021\/03\/gooch-512x640.png\" alt=\"\" class=\"wp-image-3916\"\/><\/figure><\/div>\n\n\n\n<p>In\u00a0J. Clancy, Inc. v. Khan Comfort, LLC, the Supreme Court of South Dakota held that a missing time element in a construction contract did not invalidate the contract.\u00a0 In other words, the court found that a contract existed\u2014i.e., there was\u00a0 meeting of the minds among the parties\u2014despite the lack of a completion date or time of performance.<\/p>\n\n\n\n<p>In this payment dispute between the owner of a hotel and a construction contractor, there did not appear to be a traditional construction contract executed by the parties.&nbsp; However, there were numerous written documents such as a proposal, invoices, and change orders that had been either signed by or transmitted between the parties.&nbsp; Based upon those documents, the trial court held that there was not an express written contract, but that there was a series of implied-in-fact contracts between the parties.<\/p>\n\n\n\n<p>The appellate court disagreed and held that the contractor\u2019s proposal, which was signed by the owner, was an unqualified acceptance of the parties\u2019 agreement.&nbsp; The owner\u2019s subsequent payment of the initial deposit and the contractor\u2019s immediate commencement of work evidenced the formation of a contract.<\/p>\n\n\n\n<p>Here\u2019s the goocher! The appellate court held that all essential terms of an express contract were present in the contractor\u2019s proposal, despite the fact that there was not a time of performance.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>The document listed the subject matter of the work to be performed, the quantity of materials to be ordered and installed, the price for the goods, and the parties\u2019 payment terms. Missing from the September document was a timeline for completion of the work. This, however, is not fatal.<\/p><\/blockquote>\n\n\n\n<p>Relying on a South Dakota statute, the court concluded: \u201c\u201cIf no time is specified for the performance of an act, a reasonable time is allowed.\u201d<\/p>\n\n\n\n<p>Whether you are dealing with a commercial or residential project and whether you are a contractor or owner, this case illustrates a few important concepts.&nbsp;&nbsp;<strong>First, words matter.<\/strong>&nbsp;What you include in your contract will be important for avoiding a dispute, as well as determining the outcome after a dispute arises.&nbsp;&nbsp;<strong>Second, time matters.<\/strong>&nbsp;While the court in this case found that the missing element of time was not fatal, in many states the words \u201cTime is of the essence\u201d in the construction contract is a material term that needs to be included if you want to enforce that time period.&nbsp;<strong>Finally, conduct matters.<\/strong>&nbsp;Both the trial court and appellate court found that the conduct of the parties were important, although the courts reached different conclusions.&nbsp; Avoid these type of disputes by having a roadmap of risk allocation through a clear and unambiguous construction contract.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Matthew DeVries | Best Practices Construction Law What\u2019s a goocher?\u00a0 If you saw the movie,\u00a0Stand By Me, then you know exactly what I mean.\u00a0 And there are times when parties to a construction contract face a goocher.\u00a0 Here\u2019s what I mean\u2026 In\u00a0J. Clancy, Inc. v. Khan Comfort, LLC, the Supreme Court of South Dakota held&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-lack-of-time\/\">Continue reading <span class=\"screen-reader-text\">That\u2019s A Goocher: SD Court Finds Enforceable Construction Contract Despite Lack of Time Component<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,224,11436],"class_list":["post-898589","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contract","tag-south-dakota","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>That\u2019s A Goocher: SD Court Finds Enforceable Construction Contract Despite Lack of Time Component - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-lack-of-time\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"That\u2019s A Goocher: SD Court Finds Enforceable Construction Contract Despite Lack of Time Component - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Matthew DeVries | Best Practices Construction Law What\u2019s a goocher?\u00a0 If you saw the movie,\u00a0Stand By Me, then you know exactly what I mean.\u00a0 And there are times when parties to a construction contract face a goocher.\u00a0 Here\u2019s what I mean\u2026 In\u00a0J. 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