Construction Dispute Law in Minnesota
When the owner of some real estate and a contractor enter an agreement for a construction project in Mankato, Minnesota, be it a house, landscaping project, or huge 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 overwhelming majority of instances, however, these problems are resolvable, and do not lead to major disputes. Being rational, business-minded adults, landowners and construction contractors are normally 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 involved, it does not always need to be a court. Private mediators can help 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.
Litigating a construction dispute in Mankato, Minnesota is definitely not something that anybody likes doing. However, it is sometimes necessary, as a last resort.
Examples of Construction Disputes That Might Lead to Litigation in Mankato, Minnesota
Delays: Some minor delays in a construction project are all but guaranteed to occur. Normally, 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. Additionally, 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.
Owner's refusal to pay: Contractors can also be the victims in construction disputes. Sometimes, the person who hired them will refuse to pay the agreed-upon fee, or withhold a portion of it. This, without more, certainly constitutes breach of contract. However, in such cases, the owner will rarely go to court and say "I just didn't feel like paying, so I didn't." Rather, they will claim that they had a very good reason to withhold all or part of the payment, such as unsatisfactory work by the contractor. In these cases, the court has to determine if the owner has a valid reason for not paying. If it concludes that he or she does not, it will order the owner to pay the agreed-upon price.
Subcontractors: Subcontractors are hired by general contractors to assist them in large construction projects, normally specialized tasks like installing plumbing. However, 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 basically 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: 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 Mankato, Minnesota Attorney Help?
Construction disputes can be time-consuming and costly. Hiring a brilliant Mankato, 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.