Construction Dispute Law in Michigan

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

In the majority of cases, it's possible for landowners and contractors to resolve disagreements amicably. There are many ways to do this, such as a simple verbal agreement to lower the contract price due to a mistake made by the contractor, for example, or an agreement to a slight price increase in the event of unforeseen obstacles beyond the control of either party.

Even if someone else needs to get engaged to resolve a dispute, this does not automatically mean litigation is necessary. For example, the parties might attempt mediation, in which a neutral third party tries to help guide the parties to an agreement, but cannot render a binding decision himself. They might also agree to arbitration, during which a third party is able to render a binding decision. Arbitration is typically done through a private company, and may cost less than litigation, and is overseen by an arbitrator who is an expert in the relevant field.

Litigation of a Caro, Michigan 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 Caro, Michigan

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 specific 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.

Owner's Refusal to Pay: If the contractor completes the project, and the owner refuses to pay the agreed-upon price, the contractor will typically file a lawsuit to recover what is owed. Of course, the owner will typically claim that there is a good reason for not paying, arguing that the contractor didn't conform to the project's specifications, or that the quality of construction was unacceptably poor. In such a case, the court will have to decide if the contractor actually breached the contract by doing shoddy work, which could, at least in part, excuse the owner's duty to pay.

Subcontractors: Subcontractors are hired by general contractors to assist them in large construction projects, typically specialized tasks like installing plumbing. Nonetheless, 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 essentially 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 Liens: A mechanic's lien is a way for a contractor to secure payment if a landowner declines to pay. In such cases, if the contractor sues and wins, he or she can sometimes impose a mechanic's lien on the property he or she just worked on. This permits the contractor to force a sale of the property to cover the judgment. It is usually used when other attempts to secure payment fail.

Can a Caro, Michigan Attorney Help?

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