Construction Dispute Law in Louisiana

When the owner of some real estate and a contractor enter an agreement for a construction project in Natchitoches, Louisiana, 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, normally 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 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).

Litigation of a Natchitoches, Louisiana construction dispute is never something that anyone wants to do. Nonetheless, there are sometimes no other options.

Examples of Construction Disputes That Might Lead to Litigation in Natchitoches, Louisiana

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 particular 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 disputes, as well. Sometimes, the landowners who hired them refuse to pay. This is normally 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 additional damages if the refusal to pay was done in bad faith, or if it caused foreseeable economic harm to the contractor.

Subcontractor Disputes: With very massive construction projects, general contractors don't always have the resources to do all the work themselves, so they hire other contractors to do some of the work for them. However, it is the general contractor who is ultimately responsible to the owner for the satisfactory completion of the project. So, it is very crucial to the general contractor that subcontractors do a good job. If the subcontractor causes a delay or other problem, and the owner sues the general contractor as a result, the general contractor can then go after the subcontractor to recover whatever it lost in the lawsuit.

Mechanic's Liens: If the contractor sues a land owner and wins, he will likely obtain a monetary judgment. If the owner refuses to pay, the contractor needs some way to recover. This is where the mechanic's lien comes into play. It authorizes a contractor to force the sale of the land or other real property that he just worked on, and use those proceeds to cover costs.

Can a Natchitoches, Louisiana Attorney Help?

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