Construction Dispute Law in Georgia

When a property owner and a general contractor contract for a construction project to take place on some property in Baxley, Georgia, 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.

In the majority of cases, it's possible for landowners and contractors to resolve disagreements amicably. There are many ways to do this, such as a simple verbal agreement to lower the contract price due to a mistake made by the contractor, for example, or an agreement to a slight price increase in the event of unforeseen obstacles beyond the control of either party.

Even if someone else needs to get immersed to resolve a dispute, this does not automatically mean litigation is necessary. For example, the parties might attempt mediation, in which a neutral third party tries to help guide the parties to an agreement, but cannot render a binding decision himself. They might also agree to arbitration, during which a third party is able to render a binding decision. Arbitration is normally done through a private company, and may cost less than litigation, and is overseen by an arbitrator who is an expert in the relevant field.

Because of the large cost in time and money involved, litigation in Baxley, Georgia is regarded a last resort. However, in rare cases, it does become necessary.

Examples of Construction Disputes That Might Lead to Litigation in Baxley, Georgia

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.

Refusal to Pay: Disagreements can also arise from a client's refusal or inability to hold up his end of the deal. Sometimes, once a project is complete, or nearly so, a landowner will express an unwillingness to pay the contractor for his services. There might be a variety of reasons for this - sudden loss of money, or dissatisfaction with the quality of the work are a few examples. It's rare that a client will refuse to pay a contractor simply because they don't feel like it (and if that is the reason, they'll normally come up with a better one to argue in court). In these cases, a court will occasionally have to decide if the client is obligated to pay the full price. If the work was, indeed, not up to the standards laid out in the contract, the contractor is not entitled to the full price, but is still entitled to the actual value of the work, even if it's substantially less than the contract 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 important 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: If the contractor sues a land owner and wins, he will likely obtain a monetary judgment. If the owner declines to pay, the contractor needs some way to recover. This is where the mechanic's lien comes into play. It authorizes a contractor to force the sale of the land or other real property that he just worked on, and use those proceeds to cover costs.

Can a Baxley, Georgia Attorney Help?

Disputes over construction delays or defects can be extremely taxing. Therefore, getting an accomplished Baxley, Georgia real estate attorney might mean the difference between success or failure in your business ventures.