Construction Dispute Law in California
When a property owner and a general contractor contract for a construction project to take place on some property in Hollister, California, 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.
Even if disagreements can't be resolved amongst the parties to the contract, they don't need to take their dispute into the court system. For instance, construction contracts typically call for mediation or arbitration before any disputes are resolved by the courts. Mediation is a process by which a third party serves as a sort of intermediary in settlement negotiations between the parties to the contract. The mediator can help keep negotiations on track, and suggest possible solutions the parties might not have thought of. The mediator can't issue a binding decision, however. Arbitration is a process through which the parties agree to have their dispute resolved by a third party, which can render a binding decision. Arbitration can be faster and cheaper than litigation, and it has some other advantages, as well.
Litigating a construction dispute in Hollister, California is definitely not something that anybody likes doing. However, it is sometimes necessary, as a last resort.
Examples of Construction Disputes That Might Lead to Litigation in Hollister, California
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: Contractors can also be the victims in construction disputes. Sometimes, the person who hired them will refuse to pay the agreed-upon fee, or withhold a portion of it. This, without more, certainly constitutes breach of contract. However, in such cases, the owner will rarely go to court and say "I just didn't feel like paying, so I didn't." Alternatively, they will claim that they had a very good reason to withhold all or part of the payment, such as unsatisfactory work by the contractor. In these cases, the court has to determine if the owner has a valid reason for not paying. If it concludes that he or she does not, it will order the owner to pay the agreed-upon price.
Subcontractors: Subcontractors are hired by general contractors to assist them in large construction projects, typically specialized tasks like installing plumbing. However, no matter how much of the work is performed by subcontractors, the general contractor (the one that the client actually hired to do the project) is liable to the landowner as if it were doing all the work itself. This basically means that, if a subcontractor messes up, the general contractor is the one who gets sued. But all is not lost in such a situation. If the general contractor has to compensate the owner because of the mistakes of a subcontractor, it can sue the subcontractor for whatever it had to pay to the landowner.
Mechanic's Lien: If the contractor wins in a lawsuit against the land owner, and the court orders the owner to pay the contractor for services rendered, the contractor needs a way to secure payment, if the owner refuses. In some cases, a mechanic's lien permits the contractor to force the sale of the land, and any improvements to it, in order to secure payment for the services it provided.
Can a Hollister, California 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 Hollister, California construction disputes attorney can be of great help.