What You Need to Know about Contractor Disputes
Contractor disputes arise in the construction industry for an array of reasons, oftentimes due to disagreements over project costs. The new design of the building, overtime costs, schedules, incomplete work and poor quality of construction might be issues that could invite a claim, as well. From theft of labor material to breach of contract, there are a number of issues that can lead to a claim. Contractors and owners are the two most likely parties to bring forth a contractor dispute. This is as a result of the sincere amount of money that both parties normally have invested into a commercial construction project. Unfortunately, a dispute between builders, given factors such as the tremendous amount of money at stake, can sometimes get out of hand and require litigation . For example, although the parties might have contracted for payment due upon substantial completion of the project, a developer might have its checks denied by its lender or be accused by an architect of agreeing to further modifications to the plans. Sometimes, a contractor might contract to pay at a time certain, but the receipt of payment is recognized only when certified by an independent inspector. When cash flow is reduced by a failure to receive payment, the contractor may find it difficult to obtain financing, which can compound the initial problem. By that time, a number of disputes may have arisen, and an amicable settlement between the parties is often hard to reach. When the contractor attempts to halt the work, this can create even further problems, because of losses incurred by the owner, which may make it difficult to settle.
When You Need to Hire a Contractor Dispute Lawyer
While many construction disputes can be resolved through informal communication, there are situations that necessitate hiring a contractor dispute attorney. Some of the indicators that you may need to consult an attorney include:
Unresolved Payment Issues
A general contractor is obligated to pay subcontractors for work performed on a project and how a contractor goes about meeting that obligation depends on its contract with the property owner and the contract the general contractor has with the subcontractor. If the property owner fails to pay the general contractor and the contractor remains liable to the subcontractor, regardless of whether it has been paid by the owner and the general contractor. Conversely, if the contractor fails to pay a subcontractor, the subcontractor has the option of filing a mechanics lien against the homeowner and/or the general contractor. Any potential claims that involve collection efforts against the owner should be discussed with a statutory right to lien lawyer in Gilbert, AZ as soon as possible.
Construction Defect Claims
Issues with the quality of work performed by the contractor or in the case of residential construction a subcontractor that is not up to code are referred to as defects in the contractors performance. When the contractor fails to fix defects in the quality of his work, the homeowner or commercial property owner may be entitled to recover for damages caused by the contractor’s breach of contract. If the dispute involves the quality of the material used by a subcontractor, the homeowner must first address the problem with the contractor and then with the subcontractor. The subcontractor will usually respond by offering to fix the problem. The homeowner may also contact the manufacturer of the defective material to report the problem. If the issue is not rectified by the contractor, the subcontractor and/or the material manufacturer, the homeowner may be entitled to recover damages for breach of warranty. In some cases, the defect in the contractor’s work is so obvious that the homeowner has no choice but to terminate the contract. Even if the homeowner terminates the contract and obtains a new contractor to finish the job, he does not improve his position in the eyes of the law and the homeowner will still need the assistance of an experienced litigating attorney.
Violations of state or local laws
In order to receive a license, the contractor must demonstrate that he is in compliance with all applicable state and municipal laws. The contractor also has the obligation to meet any contract and/or industry standards related to the work he is performing. If the contractor fails to comply with all the applicable laws, the homeowner has the right to pursue legal damages and in some cases even have the builder criminally prosecuted. Aggressive representation from your construction accident lawyer in Gilbert, AZ can help expedite resolution of construction disputes. If you are not getting timely responses from the contractor or subcontractor, the timeline for filing a defect claim, mechanical lien or breach of contract claim may expire.
Advantages of Retaining a Contractor Dispute Attorney
Benefiting from the Skills of a Contractor Dispute Lawyer
An attorney who focuses his or her practice on contractor disputes is well versed in a variety of construction matters related to contracts, subcontractors, and various payment issues that frequently arise during construction projects. This legal professional understands the applicable laws, regulations, and procedures associated with these types of issues, and he or she will be able to provide you with the advice and representation that you need.
Consulting with a lawyer who can represent you in a contractor dispute as quickly as possible after you become aware of an issue is essential in order to protect your best interests. He or she can handle a variety of construction contract issues, including breach of contract, loss or damage to tools, equipment, and materials, negligent work, and copyright issues. Regardless of whether or not you are Involved in a construction defect dispute, excessive change order demands, or a mechanics lien or bond claim, a lawyer who specializes in contractor disputes can help you to resolve the matter as quickly and efficiently as possible and without the need for a jury trial. In general, the lawyer will begin by negotiating the dispute on your behalf with the goal of reaching a satisfactory settlement. There may be many issues that must be resolved through this process prior to any litigation being necessary, and the lawyer will do all that he or she can to attempt to provide a satisfying outcome for you. If the dispute cannot be settled out of court, the lawyer will represent you throughout the duration of the lawsuit by advocating for your rights in depositions, pretrial conferences, courtroom trials, and during negotiations of a final settlement. This requires great understanding of the law, litigation procedures, and business negotiations skills. No matter what particular type of construction contract issue or dispute you are facing, your lawyer will have exceptional knowledge of how to best resolve the matter and protect your business interest.
The Contractor Dispute Process
When it comes to resolving construction conflicts legally, the process generally begins with filing a claim. For contractors, this claim typically goes through a claims department with their organization. It may also be submitted to a project manager or an executive within the company. Claims are often reviewed by the legal department of a construction firm in order to determine if the company is on board with taking the conflict to court. This is not an easy decision, because lawsuits can be incredibly costly for all parties involved. When possible, conflicts are settled without proceeding to litigation. In some cases, parties may turn to mediation as a way to stave off the litigation process. Mediation is a process in which a neutral third party meets with the parties in the dispute to attempt to bring about a resolution. A mediator can work with one side or both to make sure that all parties are communicating effectively and knowing their rights. After a negotiation process, if a settlement cannot be reached, the case will move to court. This is the last resort and where an experienced contractor dispute attorney can be most helpful. In this process , a judge or jury listens to the comprehensive account of the situation and then makes a decision, which is known as a verdict. The legal process for contractor disputes involves a lot of paperwork. Most cases involve a very lengthy written document that outlines the issues involved. This document, called a bill of particulars, provides the court with information about the case. This information includes the cause of action, the nature of the contract and which remedies the injured party is seeking to recover. When estimating damages, the injured party must provide the court with as much information as possible about how the faulty materials or work affected the company’s business. If a breach of contract case is involved, it must be shown that the contractor interfered with the property owner’s ability to work and that the owner suffered damages as a result of the interference. Litigation can be a long and drawn out process, but it is frequently necessary to achieve a solution to a case. Working with a qualified contractor dispute attorney is essential to obtaining a favorable outcome.
How to Choose the Right Contractor Dispute Attorney
When it comes to resolving a contractor disagreement, working with a qualified construction litigation attorney can be of great assistance. However, as you search for the right lawyer to help you, there are a few factors that you should consider to ensure that you make the best selection for your personal circumstances. For example, experience, a proven track record of success, and client testimonials are three of the top criteria to weigh when making this important selection.
Experience is obviously the most important factor to consider. In order for any attorney to have the requisite knowledge and expertise in any field, they must have been in practice long enough to gain that experience. Without experience, there is no way that an attorney could make any meaningful contributions to a case. Construction contractor litigation attorneys must have experience on both sides of these cases.
A proven track record of success also allows you to find out about an attorney’s capabilities. Testimonials from clients can be very helpful to evaluate specific details that may be beneficial in this situation. By finding the right attorney, you will be able to improve the chances of a successful outcome for your case. Successful attorneys will tend to have a strong history of successful outcomes and will be able to prove their worth through that method. Even if your case is not won through settlement or litigation, the value of the case will be preserved because of the investment that you made in the selection of your attorney.
Lastly, outstanding communication skills are imperative. This skill set will be necessary for your case given the legalities involved in these types of litigation. Your needs are also important and the discussion of those needs must be highlighted, while remaining within reason and within the law.
What to Do Before Meeting with a Lawyer
Attorney consultations for contractor dispute issues can be expensive, so it pays to be as prepared as possible before you meet. You can save yourself time and money by bringing any relevant documentation and a list of questions to you meeting. This is especially important for complex situations in which there may be more than one contractor involved and numerous contracts to review. Your attorney can help you gather all necessary documentation, but you should bring the following to your first meeting:
- All contracts, including both signed and unsigned versions, if applicable
- All accompanying paperwork, including warranties, delivery tickets, lease agreements, and invoices
- Any correspondence with the contractor or subcontractor
- Any photographs related to the project
- Documents related to financing and payment
- Insurance documentation, including both yours and your contractors’
- And in some cases , any relevant lease agreements
You should also write down a list of questions you want to ask your attorney. Questions you might want to include are:
- How long have you practiced?
- How long have you worked in construction law or contractor disputes? What percentage of your practice does construction law make up?
- Who will I be dealing with throughout the process? Will I be primarily dealing with you or a different attorney? How often will we communicate, and how will you keep me up to date with what’s happening in my case?
- Can you describe a typical case of this type? Should I expect costs to be about the same, or are there significantly different circumstances that I may be unaware of that could increase costs or change the outcome?
- Can you provide references from any former clients?
- Has anyone else ever made allegations similar to the ones I’m making? What was the outcome of those cases?
- What are potential outcomes and costs?
Your contractor dispute attorney should not hesitate to help you prepare documents and walk you through the process. It’s critical for your attorney to be well-versed in your situation to avoid wasted time and money.