Construction Dispute Law in North Carolina

Owners of real estate in Trinity, North Carolina 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 disagreements can't be resolved amongst the parties to the contract, they don't need to take their dispute into the court system. For instance, construction contracts usually call for mediation or arbitration before any disputes are resolved by the courts. Mediation is a process by which a third party serves as a sort of intermediary in settlement negotiations between the parties to the contract. The mediator can help keep negotiations on track, and suggest possible solutions the parties might not have thought of. The mediator can't issue a binding decision, however. Arbitration is a process through which the parties agree to have their dispute resolved by a third party, which can render a binding decision. Arbitration can be faster and cheaper than litigation, and it has some other advantages, as well.

Litigating a construction dispute in Trinity, North Carolina 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 Trinity, North Carolina

Delays: If the contractor is culpable in a major delay in a construction project (a delay of weeks or months, for example), a lawsuit could result. If the contract specifically states that completion by a certain date is very important, or the builder has a good reason to know this, a court will often award the owner compensation for any economic harm caused by a delay.

Refusal to Pay: Disputes 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 sometimes 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.

Subcontractors: Subcontractors are hired by general contractors to assist them in large construction projects, usually 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: A mechanic's lien is a way for a contractor to secure payment if a landowner refuses 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 Trinity, North Carolina 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 necessary, and a Trinity, North Carolina construction disputes attorney can be of great help.