Construction Dispute Law in Minnesota
When the owner of some real estate and a contractor enter an agreement for a construction project in Faribault, Minnesota, 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 overwhelming majority of cases, however, these problems are resolvable, and do not lead to major disputes. Being rational, business-minded adults, landowners and construction contractors are typically able to resolve disputes amongst themselves. After all, both stand to gain if the project is completed, and the contractor is paid.
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 construction disputes in Faribault, Minnesota can be extremely time-consuming, stressful, and costly. Nevertheless, there are (relatively rare) occurrences where it is the only option.
Examples of Construction Disputes That Might Lead to Litigation in Faribault, Minnesota
Delays: Some minor delays in a construction project are all but guaranteed to occur. Typically, if contracts require a specific completion date, the contractor will give itself longer than the project would take under ideal circumstances, to account for possible delays. Moreover, construction contracts usually attempt to insure against delays, such as imposing fees on contractors if the project is delayed beyond a certain point. If no such clause is included in a contract, a court will usually award the client damages that could have been reasonably anticipated at the time the contract was entered into.
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 typically 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.
Subcontractor Disputes: In large projects, contractors often can't handle every aspect of the construction, so they hire other (typically smaller) contractors to do some specialized work for them, such as plumbing, electrical installations, and the like. The general contractor, nonetheless, 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. Nonetheless, the contractor can then go after the subcontractor to recover whatever he had to pay.
Mechanic's Lien: If the contractor wins in a case 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 permits 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 Faribault, Minnesota Attorney Help?
Construction disputes can be time-consuming and costly. Hiring a reliable Faribault, Minnesota real estate attorney can make it much easier to deal with such disputes, and help you avoid litigation, or prevail if litigation becomes necessary.