Construction Dispute Law in Kentucky

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

Most often, the owners of land and contractors can end disagreements before they get too serious, thus eliminating the need for litigation. Most contracts governing construction projects have built-in remedies for the most common problems, usually requiring the party that causes a delay or other problem to pay the other party a set fee.

Even if a third party gets incorporated, it does not always need to be a court. Private mediators can assist the parties reach a settlement, or a private arbitrator who is an expert on construction litigation can render a binding decision, if mediation and negotiation fail and the parties can't resolve their dispute.

Litigation of a Mayfield, Kentucky construction dispute is never something that anyone wants to do. Nonetheless, there are sometimes no other avenues.

Examples of Construction Disputes That Might Lead to Litigation in Mayfield, Kentucky

Delays: If the contractor is culpable in a major delay in a construction project (a delay of weeks or months, for example), a lawsuit could result. If the contract particularly states that completion by a certain date is very important, or the builder has a good reason to know this, a court will often award the owner compensation for any economic harm caused by a delay.

Refusal to Pay: Contractors can be on the other side of legal disagreements, as well. Sometimes, the landowners who hired them refuse to pay. This is usually because the landowner believes that the contractor didn't perform under the terms of the contract, or that the work was unsatisfactory. If this is the case, it may ultimately be up to a court to decide who is right. If the contractor did, in fact, do poor work, the landowner will be excused, at least in part, from his duty to pay. If, on the other hand, the work was satisfactory, the court will order the landowner to pay the contract price immediately, and may award further damages if the refusal to pay was done in bad faith, or if it caused foreseeable economic harm to the contractor.

Subcontractors: With big construction projects, contractors usually hire other, smaller contractors to do some of the work for them. This is usually work of a specialized nature, which the general contractor isn't equipped to handle (such as plumbing or electrical wiring). The general contractor is the one who is responsible for the satisfactory completion of the project. If a subcontractor makes a mistake, or causes a delay, the general contractor is ultimately liable to the person who hired them. Nonetheless, if they are sued for the mistakes of a subcontractor, and lose, they can then sue the subcontractor to recover their losses.

Mechanic's Lien: When a contractor wins a case against a client for nonpayment of the contract price, and the client still declines 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. Essentially, 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 funds to the contractor, to secure payment.

Can a Mayfield, Kentucky Attorney Help?

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