Construction Dispute Law in Indiana

When the owner of some real estate and a contractor enter an agreement for a construction project in Merrillville, Indiana, be it a house, landscaping project, or massive office building, there's always a chance that problems will come up, no matter how careful everyone is. A few minor setbacks are almost inevitable, in fact.

Typically, contractors and landowners can resolve minor disputes amongst themselves, without having to resort to litigation. Frequently, construction contracts contain built-in remedies for mistakes and delays that can be easily corrected, such as payments to the owner for every day the project is delayed.

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 option 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 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).

Litigation of construction disputes in Merrillville, Indiana can be extremely time-consuming, stressful, and costly. Nevertheless, there are (relatively rare) occurrences where it is the only option.

Examples of Construction Disputes That Might Lead to Litigation in Merrillville, Indiana

Major Delays: If the contractor or a subcontractor is at fault in causing a considerable delay to a project (several months, for example), this may lead to a lawsuit. If the contract stated that time was of the essence for some reason (maybe the project was a new store that the owner hoped to open before the holiday shopping season, for example), a court can typically award the owner any damages that were caused by the delay.

Owner's refusal to pay: if the contractor finishes a project to specifications, and the owner of the property doesn't pay the contractor, the contractor will most likely file a lawsuit to recover the agreed-upon price. In such cases, the owner will typically argue that the contractor's work wasn't of acceptable quality. In these cases, the court must decide who first breached the contract. In these cases, it's the party who did not breach first who wins the lawsuit. If the court finds that the contractor breached the contract through sub-quality work product, the owner will not be responsible for payment (though he may have to pay for materials and labor), and if the court finds that the construction was acceptable, the owner has to pay, because he is the party in breach.

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. However, the general contractor (the one that the landowner hired to do the work) is still responsible 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 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 Merrillville, Indiana Attorney Help?

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