Construction Dispute Law in Arizona
When a property owner and a general contractor contract for a construction project to take place on some property in Mesa, Arizona, 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 disagreements 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 avenue 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 benefits 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 a Mesa, Arizona construction dispute is never something that anyone wants to do. Nonetheless, there are sometimes no other avenues.
Examples of Construction Disputes That Might Lead to Litigation in Mesa, Arizona
Major Delays: If the contractor or a subcontractor is at fault in causing a considerable delay to a project (several months, for example), this may lead to a lawsuit. If the contract stated that time was of the essence for some reason (maybe the project was a new store that the owner hoped to open before the holiday shopping season, for example), a court can typically award the owner any damages that were caused by the delay.
Refusal to Pay: Contractors can be on the other side of legal disagreements, as well. Sometimes, the landowners who hired them refuse to pay. This is typically because the landowner believes that the contractor didn't perform under the terms of the contract, or that the work was unsatisfactory. If this is the case, it may ultimately be up to a court to decide who is right. If the contractor did, in fact, do poor work, the landowner will be excused, at least in part, from his duty to pay. If, on the other hand, the work was satisfactory, the court will order the landowner to pay the contract price immediately, and may award further damages if the refusal to pay was done in bad faith, or if it caused foreseeable economic harm to the contractor.
Subcontractors: With big construction projects, contractors typically hire other, smaller contractors to do some of the work for them. This is typically work of a specialized nature, which the general contractor isn't equipped to handle (such as plumbing or electrical wiring). The general contractor is the one who is responsible for the satisfactory completion of the project. If a subcontractor makes a mistake, or causes a delay, the general contractor is ultimately liable to the person who hired them. Nonetheless, if they are sued for the mistakes of a subcontractor, and lose, they can then sue the subcontractor to recover their losses.
Mechanic's Liens: If the contractor sues a land owner and wins, he will likely obtain a monetary judgment. If the owner declines to pay, the contractor needs some way to recover. This is where the mechanic's lien comes into play. It permits a contractor to force the sale of the land or other real property that he just worked on, and use those proceeds to cover costs.
Can a Mesa, Arizona Attorney Help?
Construction disputes and disagreements can be very challenging to deal with alone. The assistance of a Mesa, Arizona real estate attorney can make the process of dealing with these disputes much quicker and easier.