Construction Dispute Law in New Jersey
Owners of real estate in Hackensack, New Jersey 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.
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 normally 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.
Because of the large cost in time and money involved, litigation in Hackensack, New Jersey is considered a last resort. However, in rare cases, it does become necessary.
Examples of Construction Disputes That Might Lead to Litigation in Hackensack, New Jersey
Delays in Construction: Delays are commonly 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 normally be liable to the landowner for any harm resulting from it.
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 normally 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 substantially less than the contract price.
Subcontractor Disputes: With very massive construction projects, general contractors don't always have the resources to do all the work themselves, so they hire other contractors to do some of the work for them. However, it is the general contractor who is ultimately responsible to the owner for the satisfactory completion of the project. So, it is very crucial to the general contractor that subcontractors do a good job. If the subcontractor causes a delay or other problem, and the owner sues the general contractor as a result, the general contractor can then go after the subcontractor to recover whatever it lost in the lawsuit.
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 authorizes 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 Hackensack, New Jersey Attorney Help?
Disputes over construction delays or defects can be extremely taxing. Therefore, getting an accomplished Hackensack, New Jersey real estate attorney might mean the difference between success or failure in your business ventures.