Construction Dispute Law in Maryland

When the owner of some real estate and a contractor enter an agreement for a construction project in Montgomery County, Maryland, be it a house, landscaping project, or massive office building, there's always a chance that problems will come up, no matter how careful everyone is. A few minor setbacks are almost inevitable, in fact.

In the majority of cases, it's possible for landowners and contractors to resolve disputes amicably. There are many ways to do this, such as a simple verbal agreement to lower the contract price due to a mistake made by the contractor, for example, or an agreement to a slight price increase in the event of unforeseen obstacles beyond the control of either party.

Even if a third party gets involved, it does not always need to be a court. Private mediators can help the parties reach a settlement, or a private arbitrator who is an expert on construction litigation can render a binding decision, if mediation and negotiation fail and the parties can't resolve their dispute.

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

Examples of Construction Disputes That Might Lead to Litigation in Montgomery County, Maryland

Delays: Some minor delays in a construction project are all but guaranteed to occur. Usually, if contracts require a specific completion date, the contractor will give itself longer than the project would take under ideal circumstances, to account for possible delays. Furthermore, construction contracts usually attempt to insure against delays, such as imposing fees on contractors if the project is delayed beyond a certain point. If no such clause is included in a contract, a court will usually award the client damages that could have been reasonably anticipated at the time the contract was entered into.

Owner's Refusal to Pay: If the contractor completes the project, and the owner refuses to pay the agreed-upon price, the contractor will usually file a lawsuit to recover what is owed. Of course, the owner will usually 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: In large projects, contractors often can't handle every aspect of the construction, so they hire other (usually smaller) contractors to do some specialized work for them, such as plumbing, electrical installations, and the like. The general contractor, however, is responsible to the owner for anything that goes wrong. If a subcontractor messes up, and the owner sues the contractor, the contractor will have to pay. However, the contractor can then go after the subcontractor to recover whatever he had to pay.

Mechanic's Liens: Sometimes, when a contractor wins in a lawsuit against the landowner who hired him or her, and obtains a court order for payment, the contractor will still refuse to pay. Since a money judgment isn't worth much without a way to enforce it, the laws of many states have evolved to allow what's known as a "mechanic's lien." As a last resort, if a landowner refuses to pay the contractor for work done on the property, the contractor can force a sale of the property, and keep the proceeds, up to the amount of money owed.

Can a Montgomery County, Maryland Attorney Help?

Construction disputes can be time-consuming and costly. Hiring a good Montgomery County, Maryland real estate attorney can make it much easier to deal with such disputes, and help you avoid litigation, or prevail if litigation becomes necessary.