Construction Dispute Law in Kentucky

When the owner of some real estate and a contractor enter an agreement for a construction project in Somerset, Kentucky, 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.

Most often, the owners of land and contractors can end disputes 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.

And even if disputes can't be resolved so easily, the courts still don't necessarily have to get involved. 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 (generally 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).

Because of the large cost in time and money involved, litigation in Somerset, Kentucky is considered a last resort. However, in rare cases, it does become necessary.

Examples of Construction Disputes That Might Lead to Litigation in Somerset, 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 specifically 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: Disputes 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 usually come up with a better one to argue in court). In these cases, a court will sometimes 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 significantly less than the contract price.

Subcontractors: Subcontractors are hired by general contractors to assist them in large construction projects, usually 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: 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 allows 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 Somerset, Kentucky Attorney Help?

Construction disputes and disagreements can be very difficult to deal with alone. The assistance of a Somerset, Kentucky real estate attorney can make the process of dealing with these disputes much quicker and easier.