Frequently, the parties involved with building a construction project believe that one of the other parties is acting unreasonably. There are times where one of those parties — the owner, the prime contractor, or the subcontractor — act so unreasonably that they may violate the implied covenant of good faith and fair dealing.
Under Florida law, every contract contains an implied covenant of good faith and fair dealing. The purpose of the implied covenant of good faith and fair dealing is to protect the reasonable expectations of the contracting parties in light of their express agreement.
While not a Florida case, a recent federal court case that went to trial in Idaho shows an example of a prime contractor acting unreasonably with its subcontractors on a federal government project.
Continue Reading How the Implied Covenant of Good Faith and Fair Dealing Can Apply in Construction Disputes