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 Lincolnwood, 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.

And even if disputes can't be resolved so easily, the courts still don't necessarily have to get engaged. For example, a construction contract may require mediation before any further action is taken. Mediation is a process by which a third party tries to guide the parties to the dispute to a settlement. The mediator cannot, however, render any binding decision. Another avenue is arbitration. This is where the parties go to a private arbitration service, which can render a binding judgment (usually enforceable through contract law, as the parties agree in advance to abide by the arbitrator's decision). Arbitration has benefits over litigation, as the parties can have a say in choosing the arbitrator (allowing them to have their case arbitrated by an expert on construction disputes, for example).

Construction Dispute litigation in Lincolnwood, 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 Lincolnwood, Illinois

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: 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 typically 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 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, nonetheless, 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. Nonetheless, the contractor can then go after the subcontractor to recover whatever he 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 Lincolnwood, 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 Lincolnwood, Illinois construction disputes attorney, who can advise you on the next steps in the process.