Construction Dispute Law in Illinois

When a property owner and a general contractor contract for a construction project to take place on some property in Barrington, Illinois, 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 cases, 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 someone else needs to get engaged 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 typically 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.

Construction Dispute litigation in Barrington, Illinois is typically time-consuming and expensive. But it is sometimes necessary, typically as a last resort.

Examples of Construction Disputes That Might Lead to Litigation in Barrington, Illinois

Delays in Construction: Delays are frequently 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 typically 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." Alternatively, 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: When a construction company is contracted to complete a large project, there is typically 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 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 permit 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 Barrington, Illinois Attorney Help?

If you have a construction dispute, you should first try to resolve it amicably with the other party. If this fails, it is almost always crucial to hire a Barrington, Illinois construction disputes attorney, who can advise you on the next steps in the process.