Construction Dispute Law in New Hampshire
Owners of real estate in Seabrook, New Hampshire commonly 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.
Most often, landowners and construction contractors are able to resolve minor to moderate disputes between themselves, and litigation is rarely necessary. Nobody likes litigation, so, to this end, most construction contracts have built-in remedies in case something goes wrong, like set price reductions if construction is delayed.
And even if disputes can't be resolved so easily, the courts still don't necessarily have to get immersed. For example, a construction contract may require mediation before any further action is taken. Mediation is a process by which a third party tries to guide the parties to the dispute to a settlement. The mediator cannot, however, render any binding decision. Another option is arbitration. This is where the parties go to a private arbitration service, which can render a binding judgment (typically enforceable through contract law, as the parties agree in advance to abide by the arbitrator's decision). Arbitration has advantages over litigation, as the parties can have a say in choosing the arbitrator (allowing them to have their case arbitrated by an expert on construction disputes, for example).
Litigation of a Seabrook, New Hampshire construction dispute is never something that anyone wants to do. Nonetheless, there are sometimes no other options.
Examples of Construction Disputes That Might Lead to Litigation in Seabrook, New Hampshire
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 particular 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: Contractors can be on the other side of legal disputes, as well. Sometimes, the landowners who hired them refuse to pay. This is normally 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 additional 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 normally hire other, smaller contractors to do some of the work for them. This is normally 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. However, 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: If the contractor wins in a lawsuit against the land owner, and the court orders the owner to pay the contractor for services rendered, the contractor needs a way to secure payment, if the owner refuses. In some cases, a mechanic's lien authorizes the contractor to force the sale of the land, and any improvements to it, in order to secure payment for the services it provided.
Can a Seabrook, New Hampshire Attorney Help?
Disputes over construction delays or defects can be extremely taxing. Therefore, getting an accomplished Seabrook, New Hampshire real estate attorney might mean the difference between success or failure in your business ventures.