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 Trinidad, Colorado, whether it's a house, some landscaping, or a remodeling project, there is always a risk 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, normally 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 immersed. 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 (typically 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 Trinidad, Colorado 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 Trinidad, Colorado
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 particularly states that completion by a particular 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 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." Rather, 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: With very massive construction projects, general contractors don't always have the resources to do all the work themselves, so they hire other contractors to do some of the work for them. Nonetheless, it is the general contractor who is ultimately responsible to the owner for the satisfactory completion of the project. So, it is very essential to the general contractor that subcontractors do a good job. If the subcontractor causes a delay or other issue, and the owner sues the general contractor as a result, the general contractor can then go after the subcontractor to recover whatever it lost in the lawsuit.
Mechanic's Liens: Sometimes, when a contractor wins in a case against the landowner who hired him or her, and obtains a court order for payment, the contractor will still refuse to pay. Since a money judgment isn't worth much without a way to enforce it, the laws of many states have evolved to authorize what's known as a "mechanic's lien." As a last resort, if a landowner refuses to pay the contractor for work done on the property, the contractor can force a sale of the property, and keep the proceeds, up to the amount of money owed.
Can a Trinidad, Colorado Attorney Help?
Construction disputes and disagreements can be very hard to deal with alone. The assistance of a Trinidad, Colorado real estate attorney can make the process of dealing with these disputes much quicker and easier.