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 Wickenburg, 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 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 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 option 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 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 a Wickenburg, Arizona construction dispute is never something that anyone wants to do. Nonetheless, there are sometimes no other options.

Examples of Construction Disputes That Might Lead to Litigation in Wickenburg, 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 finishes a project to specifications, and the owner of the property doesn't pay the contractor, the contractor will most likely file a lawsuit to recover the agreed-upon price. In such cases, the owner will usually argue that the contractor's work wasn't of acceptable quality. In these cases, the court must decide who first breached the contract. In these cases, it's the party who did not breach first who wins the lawsuit. If the court finds that the contractor breached the contract through sub-quality work product, the owner will not be liable for payment (though he may have to pay for materials and labor), and if the court finds that the construction was acceptable, the owner has to pay, because he is the party in breach.

Subcontractor Disputes: When a construction company is contracted to complete a large project, there is usually 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 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 Wickenburg, Arizona 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 necessary, and a Wickenburg, Arizona construction disputes attorney can be of great help.