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 Sedona, Arizona, whether it's a house, some landscaping, or a remodeling project, there is always a chance 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 involved. 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 (generally 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 Sedona, 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 Sedona, Arizona
Construction Delays: Delays in construction are common sticking points between contractors and landowners. These delays can sometimes lead to litigation, especially if the construction contract makes it clear that time is an important factor, or if the contract mandates a certain completion date. In such situations, a court will often award the landowner compensation for any monetary losses he or she suffered as a result of the 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 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 decide 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, nonetheless, 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. Nonetheless, the contractor can then go after the subcontractor to recover whatever he had to pay.
Mechanic's Liens: A mechanic's lien is a way for a contractor to secure payment if a landowner declines 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 allows the contractor to force a sale of the property to cover the judgment. It is usually used when other attempts to secure payment fail.
Can a Sedona, Arizona Attorney Help?
Disputes over construction delays or defects can be extremely taxing. Therefore, getting an experienced Sedona, Arizona real estate attorney might mean the difference between success or failure in your business ventures.