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 Littleton, Colorado, 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, 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, usually 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 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).
Construction Dispute litigation in Littleton, Colorado is usually time-consuming and expensive. But it is sometimes necessary, usually as a last resort.
Examples of Construction Disputes That Might Lead to Litigation in Littleton, Colorado
Delays: Some minor delays in a construction project are all but guaranteed to occur. Usually, 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. Furthermore, 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: Contractors can also be the victims in construction disagreements. 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." Instead, 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 situations, 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.
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 Lien: If the contractor wins in a case 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 allows 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 Littleton, Colorado Attorney Help?
Disputes over construction delays or defects can be extremely taxing. Therefore, getting an experienced Littleton, Colorado real estate attorney might mean the difference between success or failure in your business ventures.