Construction Dispute Law in Colorado

When a property owner and a general contractor contract for a construction project to take place on some property in Lafayette, Colorado, 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, the owners of land and contractors can end disagreements before they get too serious, thus eliminating the need for litigation. Most contracts governing construction projects have built-in remedies for the most common problems, typically requiring the party that causes a delay or other problem to pay the other party a set fee.

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).

Construction Dispute litigation in Lafayette, Colorado is typically time-consuming and expensive. But it is sometimes necessary, typically as a last resort.

Examples of Construction Disputes That Might Lead to Litigation in Lafayette, Colorado

Delays: Some minor delays in a construction project are all but guaranteed to occur. Typically, 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. Moreover, 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 typically file a lawsuit to recover what is owed. Of course, the owner will typically 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.

Subcontractors: Subcontractors are hired by general contractors to assist them in large construction projects, typically specialized tasks like installing plumbing. Nonetheless, 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 essentially 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 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 permits 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 Lafayette, Colorado Attorney Help?

Construction disputes and disagreements can be very challenging to deal with alone. The assistance of a Lafayette, Colorado real estate attorney can make the process of dealing with these disputes much quicker and easier.