Construction Dispute Law in Michigan
When the owner of some real estate and a contractor enter an agreement for a construction project in Harper Woods, Michigan, 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.
In the majority of cases, it's possible for landowners and contractors to resolve disputes 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 disagreements can't be resolved amongst the parties to the contract, they don't need to take their dispute into the court system. For instance, construction contracts normally call for mediation or arbitration before any disputes are resolved by the courts. Mediation is a process by which a third party serves as a sort of intermediary in settlement negotiations between the parties to the contract. The mediator can help keep negotiations on track, and suggest possible solutions the parties might not have thought of. The mediator can't issue a binding decision, however. Arbitration is a process through which the parties agree to have their dispute resolved by a third party, which can render a binding decision. Arbitration can be faster and cheaper than litigation, and it has some other advantages, as well.
Because of the large cost in time and money involved, litigation in Harper Woods, Michigan is considered a last resort. However, in rare cases, it does become necessary.
Examples of Construction Disputes That Might Lead to Litigation in Harper Woods, Michigan
Construction Delays: Delays in construction are frequent sticking points between contractors and landowners. These delays can sometimes lead to litigation, especially if the construction contract makes it clear that time is an important factor, or if the contract mandates a certain completion date. In such situations, a court will often award the landowner compensation for any monetary losses he or she suffered as a result of the 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 normally 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 substantially less than the contract price.
Subcontractor Disputes: In large projects, contractors often can't handle every aspect of the construction, so they hire other (normally smaller) contractors to do some specialized work for them, such as plumbing, electrical installations, and the like. The general contractor, however, is responsible to the owner for anything that goes wrong. If a subcontractor messes up, and the owner sues the contractor, the contractor will have to pay. However, the contractor can then go after the subcontractor to recover whatever he 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 authorizes 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 Harper Woods, Michigan Attorney Help?
Disputes over construction delays or defects can be extremely taxing. Therefore, getting an accomplished Harper Woods, Michigan real estate attorney might mean the difference between success or failure in your business ventures.