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

In the overwhelming majority of cases, however, these problems are resolvable, and do not lead to major disputes. Being rational, business-minded adults, landowners and construction contractors are usually 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 disagreements 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.

Litigating a construction dispute in Webster City, Iowa is definitely not something that anybody likes doing. Nonetheless, it is sometimes necessary, as a last resort.

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

Construction Delays: Delays in construction are common 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: 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 usually 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 significantly less than the contract price.

Subcontractor Disputes: With very large 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: 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 allow 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 Webster City, Iowa Attorney Help?

Construction disputes and disagreements can be very difficult to deal with alone. The assistance of a Webster City, Iowa real estate attorney can make the process of dealing with these disputes much quicker and easier.