Construction Dispute Law in Minnesota
When the owner of some real estate and a contractor enter an agreement for a construction project in Robbinsdale, 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 someone else needs to get immersed 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 normally 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.
Because of the large cost in time and money involved, litigation in Robbinsdale, Minnesota is considered a last resort. However, in rare cases, it does become necessary.
Examples of Construction Disputes That Might Lead to Litigation in Robbinsdale, 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.
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: When a contractor wins a lawsuit against a client for nonpayment of the contract price, and the client still refuses 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. Basically, 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 proceeds to the contractor, to secure payment.
Can a Robbinsdale, Minnesota Attorney Help?
Disputes over construction delays or defects can be extremely taxing. Therefore, getting an accomplished Robbinsdale, Minnesota real estate attorney might mean the difference between success or failure in your business ventures.