Construction Dispute Law in Ohio

Owners of real estate in Archbold, Ohio 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 overwhelming majority of instances, however, these problems are resolvable, and do not lead to major disputes. Being rational, business-minded adults, landowners and construction contractors are usually able to resolve disputes amongst themselves. After all, both stand to gain if the project is completed, and the contractor is paid.

Even if a third party gets involved, it does not always need to be a court. Private mediators can help the parties reach a settlement, or a private arbitrator who is an expert on construction litigation can render a binding decision, if mediation and negotiation fail and the parties can't resolve their dispute.

Litigating a construction dispute in Archbold, Ohio 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 Archbold, Ohio

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.

Owner's refusal to pay: Contractors can also be the victims in construction disputes. Sometimes, the person who hired them will refuse to pay the agreed-upon fee, or withhold a portion of it. This, without more, certainly constitutes breach of contract. However, in such cases, the owner will rarely go to court and say "I just didn't feel like paying, so I didn't." Instead, they will claim that they had a very good reason to withhold all or part of the payment, such as unsatisfactory work by the contractor. In these cases, the court has to determine if the owner has a valid reason for not paying. If it concludes that he or she does not, it will order the owner to pay the agreed-upon price.

Subcontractor Disputes: With very large 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 essential 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 Lien: When a contractor wins a lawsuit against a client for nonpayment of the contract price, and the client still refuses to pay, there is a problem: a monetary judgment means next to nothing if it can't be enforced. To solve this problem, the mechanic's lien has been developed. Essentially, if a landowner refuses to pay a contractor, even in the face of a court order, the court can force a sale of the property that the contractor worked on, along with all the improvements on it, and then give the proceeds to the contractor, to secure payment.

Can a Archbold, Ohio 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 an Archbold, Ohio construction disputes attorney can be of great help.