Construction Dispute Law in Connecticut
When a property owner and a general contractor contract for a construction project to take place on some property in Stamford, Connecticut, 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.
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 normally 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 procedure through which the parties agree to have their dispute resolved by a third party, which can render a binding decision. Arbitration can be quicker and cheaper than litigation, and it has some other advantages, as well.
Because of the large cost in time and money involved, litigation in Stamford, Connecticut is regarded a last resort. However, in rare cases, it does become necessary.
Examples of Construction Disputes That Might Lead to Litigation in Stamford, Connecticut
Delays in Construction: Delays are commonly points of contention between contractors and landowners. Contracts sometimes have clauses which explicitly state that the project needs to be completed by a certain date, or penalties will be imposed on the contractor (reduced payments, for example). However, if the contract doesn't contain such built-in remedies, or one party refuses to abide by them, litigation may be necessary. If a contractor causes a delay that it could have prevented, it will normally be liable to the landowner for any harm resulting from it.
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: In large projects, contractors often can't handle every aspect of the construction, so they hire other (normally 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: When a contractor wins a case against a client for nonpayment of the contract price, and the client still declines to pay, there is a problem: a monetary judgment means next to nothing if it can't be enforced. To solve this problem, the mechanic's lien has been developed. Basically, if a landowner refuses to pay a contractor, even in the face of a court order, the court can force a sale of the property that the contractor worked on, along with all the improvements on it, and then give the funds to the contractor, to secure payment.
Can a Stamford, Connecticut Attorney Help?
Construction disputes can be time-consuming and costly. Hiring a seasoned Stamford, Connecticut real estate attorney can make it much easier to deal with such disputes, and help you avoid litigation, or prevail if litigation becomes necessary.
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