Construction Dispute Law in Missouri
Owners of real estate in Union, Missouri often contract with other parties ("contractors") for construction on the property they own. Such projects are likely to suffer at least a few minor setbacks, and any project also carries the risk of major setbacks, delays, or unexpected costs.
Usually, contractors and landowners can resolve minor disputes amongst themselves, without having to resort to litigation. Often, construction contracts contain built-in remedies for mistakes and delays that can be easily corrected, such as payments to the owner for every day the project is delayed.
Even if the parties can't easily resolve their disputes, and someone else needs to intervene, that somebody doesn't always need to be a judge or jury. Many construction disagreements call for mediation, during which a neutral third party helps the parties to the dispute negotiate a settlement. They might also go through arbitration, during which a third party renders a binding decision.
Litigation of construction disputes in Union, Missouri 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 Union, Missouri
Delays in Construction: Delays are often points of contention between contractors and landowners. Contracts sometimes have clauses which explicitly state that the project needs to be completed by a certain date, or penalties will be imposed on the contractor (reduced payments, for example). However, if the contract doesn't contain such built-in remedies, or one party refuses to abide by them, litigation may be necessary. If a contractor causes a delay that it could have prevented, it will usually be liable to the landowner for any harm resulting from it.
Refusal to Pay: Disagreements 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 usually come up with a better one to argue in court). In these cases, a court will occasionally 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 significantly less than the contract price.
Subcontractor Disputes: In large projects, contractors often can't handle every aspect of the construction, so they hire other (usually 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 Liens: A mechanic's lien is a way for a contractor to secure payment if a landowner declines to pay. In such cases, if the contractor sues and wins, he or she can sometimes impose a mechanic's lien on the property he or she just worked on. This allows the contractor to force a sale of the property to cover the judgment. It is usually used when other attempts to secure payment fail.
Can a Union, Missouri Attorney Help?
If you have a construction dispute, you should first try to resolve it amicably with the other party. If this fails, it is almost always crucial to hire an Union, Missouri construction disputes attorney, who can advise you on the next steps in the process.