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 Keokuk, Iowa, whether it's a house, some landscaping, or a remodeling project, there is always a gamble that something can go wrong. In fact, at least a very minor setback may be more likely than not.

In the overwhelming majority of instances, however, these problems are resolvable, and do not lead to major disputes. Being rational, business-minded adults, landowners and construction contractors are typically able to resolve disputes amongst themselves. After all, both stand to gain if the project is completed, and the contractor is paid.

Even if the parties can't easily resolve their disputes, and someone else needs to intervene, that somebody doesn't always need to be a judge or jury. Many construction disputes call for mediation, during which a neutral third party helps the parties to the dispute negotiate a settlement. They might also go through arbitration, during which a third party renders a binding decision.

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

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

Construction Delays: Delays in construction are prevalent sticking points between contractors and landowners. These delays can sometimes lead to litigation, especially if the construction contract makes it clear that time is an important factor, or if the contract mandates a certain completion date. In such situations, a court will often award the landowner compensation for any monetary losses he or she suffered as a result of the delay.

Refusal to Pay: Disputes 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 typically come up with a better one to argue in court). In these cases, a court will sometimes 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 considerably less than the contract price.

Subcontractor Disputes: In large projects, contractors often can't handle every aspect of the construction, so they hire other (typically smaller) contractors to do some specialized work for them, such as plumbing, electrical installations, and the like. The general contractor, however, 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. However, the contractor can then go after the subcontractor to recover whatever he had to pay.

Mechanic's Lien: If the contractor wins in a lawsuit 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 permits 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 Keokuk, Iowa Attorney Help?

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