Construction Dispute Law in New York
Owners of real estate in New Windsor, New York 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.
In the majority of cases, it's possible for landowners and contractors to resolve disagreements amicably. There are many ways to do this, such as a simple verbal agreement to lower the contract price due to a mistake made by the contractor, for example, or an agreement to a slight price increase in the event of unforeseen obstacles beyond the control of either party.
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 procedure through which the parties agree to have their dispute resolved by a third party, which can render a binding decision. Arbitration can be quicker and cheaper than litigation, and it has some other advantages, as well.
Construction Dispute litigation in New Windsor, New York is usually time-consuming and expensive. But it is sometimes necessary, usually as a last resort.
Examples of Construction Disputes That Might Lead to Litigation in New Windsor, New York
Construction Delays: Delays in construction are common sticking points between contractors and landowners. These delays can sometimes lead to litigation, especially if the construction contract makes it clear that time is an important factor, or if the contract mandates a certain completion date. In such situations, a court will often award the landowner compensation for any monetary losses he or she suffered as a result of the delay.
Owner's Refusal to Pay: If the contractor completes the project, and the owner refuses to pay the agreed-upon price, the contractor will usually file a lawsuit to recover what is owed. Of course, the owner will usually claim that there is a good reason for not paying, arguing that the contractor didn't conform to the project's specifications, or that the quality of construction was unacceptably poor. In such a case, the court will have to decide if the contractor actually breached the contract by doing shoddy work, which could, at least in part, excuse the owner's duty to pay.
Subcontractor Disputes: When a construction company is contracted to complete a large project, there is usually a great deal of specialized work to be done which they aren't equipped to handle. As a result, they hire other contractors, who, in this arrangement, are subcontractors, to do some of the work. Nonetheless, the general contractor (the one that the landowner hired to do the work) is still accountable for the completion of the project - if a subcontractor causes a problem, the general contractor is on the hook for it. This sometimes leads to landowners suing general contractors for the mistakes of subcontractors. If the general contractor loses, and has to pay the client, the general contractor can then sue the subcontractor for whatever amount of money it 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 New Windsor, New York 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 imperative to hire a New Windsor, New York construction disputes attorney, who can advise you on the next steps in the process.