Construction Dispute Law in Iowa

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

Litigation of construction disputes in Grimes, Iowa can be extremely time-consuming, stressful, and costly. Nevertheless, there are (relatively rare) times where it is the only option.

Examples of Construction Disputes That Might Lead to Litigation in Grimes, Iowa

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: if the contractor finishes a project to specifications, and the owner of the property doesn't pay the contractor, the contractor will most likely file a lawsuit to recover the agreed-upon price. In such cases, the owner will normally argue that the contractor's work wasn't of acceptable quality. In these cases, the court must decide who first breached the contract. In these cases, it's the party who did not breach first who wins the lawsuit. If the court finds that the contractor breached the contract through sub-quality work product, the owner will not be accountable for payment (though he may have to pay for materials and labor), and if the court finds that the construction was acceptable, the owner has to pay, because he is the party in breach.

Subcontractor Disputes: When a construction company is contracted to complete a large project, there is normally a great deal of specialized work to be done which they aren't equipped to handle. As a result, they hire other contractors, who, in this arrangement, are subcontractors, to do some of the work. Nonetheless, the general contractor (the one that the landowner hired to do the work) is still accountable for the completion of the project - if a subcontractor causes a problem, the general contractor is on the hook for it. This sometimes leads to landowners suing general contractors for the mistakes of subcontractors. If the general contractor loses, and has to pay the client, the general contractor can then sue the subcontractor for whatever amount of money it 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 authorizes 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 Grimes, Iowa Attorney Help?

If you are involved in a dispute over a construction project, you should try to avoid litigation, and settle the matter as amicably as possible. However, litigation is sometimes crucial, and a Grimes, Iowa construction disputes attorney can be of great help.