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 Marengo, Illinois, 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 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 normally 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 immersed. 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 option is arbitration. This is where the parties go to a private arbitration service, which can render a binding judgment (typically enforceable through contract law, as the parties agree in advance to abide by the arbitrator's decision). Arbitration has advantages 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 Marengo, Illinois is normally time-consuming and expensive. But it is sometimes necessary, normally as a last resort.

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

Delays: Some minor delays in a construction project are all but guaranteed to occur. Normally, if contracts require a specific completion date, the contractor will give itself longer than the project would take under ideal circumstances, to account for possible delays. Additionally, construction contracts usually attempt to insure against delays, such as imposing fees on contractors if the project is delayed beyond a certain point. If no such clause is included in a contract, a court will usually award the client damages that could have been reasonably anticipated at the time the contract was entered into.

Owner's refusal to pay: Contractors can also be the victims in construction disputes. 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." Rather, 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 cases, 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.

Subcontractors: Subcontractors are hired by general contractors to assist them in large construction projects, normally specialized tasks like installing plumbing. However, no matter how much of the work is performed by subcontractors, the general contractor (the one that the client actually hired to do the project) is liable to the landowner as if it were doing all the work itself. This basically means that, if a subcontractor messes up, the general contractor is the one who gets sued. But all is not lost in such a situation. If the general contractor has to compensate the owner because of the mistakes of a subcontractor, it can sue the subcontractor for whatever it had to pay to the landowner.

Mechanic's Lien: When a contractor wins a lawsuit against a client for nonpayment of the contract price, and the client still refuses to pay, there is a problem: a monetary judgment means next to nothing if it can't be enforced. To solve this problem, the mechanic's lien has been developed. Basically, if a landowner refuses to pay a contractor, even in the face of a court order, the court can force a sale of the property that the contractor worked on, along with all the improvements on it, and then give the proceeds to the contractor, to secure payment.

Can a Marengo, Illinois 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 essential, and a Marengo, Illinois construction disputes attorney can be of great help.