Construction Dispute Law in Minnesota

When the owner of some real estate and a contractor enter an agreement for a construction project in Forest Lake, 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 usually 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 Forest Lake, Minnesota can be extremely time-consuming, stressful, and costly. Nevertheless, there are (relatively rare) occasions where it is the only option.

Examples of Construction Disputes That Might Lead to Litigation in Forest Lake, Minnesota

Delays: Some minor delays in a construction project are all but guaranteed to occur. Usually, 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. Furthermore, 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 usually 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.

Subcontractors: With big construction projects, contractors usually hire other, smaller contractors to do some of the work for them. This is usually work of a specialized nature, which the general contractor isn't equipped to handle (such as plumbing or electrical wiring). The general contractor is the one who is responsible for the satisfactory completion of the project. If a subcontractor makes a mistake, or causes a delay, the general contractor is ultimately liable to the person who hired them. Nonetheless, if they are sued for the mistakes of a subcontractor, and lose, they can then sue the subcontractor to recover their losses.

Mechanic's Lien: When a contractor wins a case against a client for nonpayment of the contract price, and the client still declines to pay, there is a problem: a monetary judgment means next to nothing if it can't be enforced. To solve this problem, the mechanic's lien has been developed. Essentially, if a landowner refuses to pay a contractor, even in the face of a court order, the court can force a sale of the property that the contractor worked on, along with all the improvements on it, and then give the funds to the contractor, to secure payment.

Can a Forest Lake, Minnesota Attorney Help?

If you are involved in a dispute over a construction project, you should try to avoid litigation, and settle the matter as amicably as possible. However, litigation is sometimes imperative, and a Forest Lake, Minnesota construction disputes attorney can be of great help.