Forrest Construction Dispute Lawyers

Forrest Construction Dispute Lawyers, AR

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Construction Dispute Law in Arkansas

When a property owner and a general contractor contract for a construction project to take place on some property in Forrest, Arkansas, whether it's a house, some landscaping, or a remodeling project, there is always a gamble that something can go wrong. In fact, at least a very minor setback may be more likely than not.

Most often, landowners and construction contractors are able to resolve minor to moderate disputes between themselves, and litigation is rarely necessary. Nobody likes litigation, so, to this end, most construction contracts have built-in remedies in case something goes wrong, like set price reductions if construction is delayed.

And even if disputes can't be resolved so easily, the courts still don't necessarily have to get engaged. For example, a construction contract may require mediation before any further action is taken. Mediation is a process by which a third party tries to guide the parties to the dispute to a settlement. The mediator cannot, however, render any binding decision. Another option is arbitration. This is where the parties go to a private arbitration service, which can render a binding judgment (usually enforceable through contract law, as the parties agree in advance to abide by the arbitrator's decision). Arbitration has advantages over litigation, as the parties can have a say in choosing the arbitrator (allowing them to have their case arbitrated by an expert on construction disputes, for example).

Litigation of construction disputes in Forrest, Arkansas can be extremely time-consuming, stressful, and costly. Nevertheless, there are (relatively rare) occurrences where it is the only option.

Examples of Construction Disputes That Might Lead to Litigation in Forrest, Arkansas

Delays: If the contractor is culpable in a major delay in a construction project (a delay of weeks or months, for example), a lawsuit could result. If the contract specifically states that completion by a specific date is very important, or the builder has a good reason to know this, a court will often award the owner compensation for any economic harm caused by a delay.

Owner's Refusal to Pay: If the contractor completes the project, and the owner refuses to pay the agreed-upon price, the contractor will typically file a lawsuit to recover what is owed. Of course, the owner will typically claim that there is a good reason for not paying, arguing that the contractor didn't conform to the project's specifications, or that the quality of construction was unacceptably poor. In such a case, the court will have to determine if the contractor actually breached the contract by doing shoddy work, which could, at least in part, excuse the owner's duty to pay.

Subcontractor Disputes: When a construction company is contracted to complete a large project, there is typically a great deal of specialized work to be done which they aren't equipped to handle. As a result, they hire other contractors, who, in this arrangement, are subcontractors, to do some of the work. However, the general contractor (the one that the landowner hired to do the work) is still responsible for the completion of the project - if a subcontractor causes a problem, the general contractor is on the hook for it. This sometimes leads to landowners suing general contractors for the mistakes of subcontractors. If the general contractor loses, and has to pay the client, the general contractor can then sue the subcontractor for whatever amount of money it had to pay.

Mechanic's Liens: A mechanic's lien is a way for a contractor to secure payment if a landowner refuses to pay. In such cases, if the contractor sues and wins, he or she can sometimes impose a mechanic's lien on the property he or she just worked on. This permits the contractor to force a sale of the property to cover the judgment. It is usually used when other attempts to secure payment fail.

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Can a Forrest, Arkansas Attorney Help?

If you are involved in a dispute over a construction project, you should try to avoid litigation, and settle the matter as amicably as possible. However, litigation is sometimes essential, and a Forrest, Arkansas construction disputes attorney can be of great help.

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