Construction Dispute Law in Ohio
Owners of real estate in Mentor, Ohio frequently 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 typically able to resolve disputes amongst themselves. After all, both stand to gain if the project is completed, and the contractor is paid.
Even if the parties can't easily resolve their disputes, and someone else needs to intervene, that somebody doesn't always need to be a judge or jury. Many construction disputes call for mediation, during which a neutral third party helps the parties to the dispute negotiate a settlement. They might also go through arbitration, during which a third party renders a binding decision.
Litigating a construction dispute in Mentor, 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 Mentor, Ohio
Major Delays: If the contractor or a subcontractor is at fault in causing a considerable delay to a project (several months, for example), this may lead to a lawsuit. If the contract stated that time was of the essence for some reason (maybe the project was a new store that the owner hoped to open before the holiday shopping season, for example), a court can typically award the owner any damages that were caused by the delay.
Owner's refusal to pay: if the contractor finishes a project to specifications, and the owner of the property doesn't pay the contractor, the contractor will most likely file a lawsuit to recover the agreed-upon price. In such cases, the owner will typically argue that the contractor's work wasn't of acceptable quality. In these cases, the court must decide who first breached the contract. In these cases, it's the party who did not breach first who wins the lawsuit. If the court finds that the contractor breached the contract through sub-quality work product, the owner will not be responsible for payment (though he may have to pay for materials and labor), and if the court finds that the construction was acceptable, the owner has to pay, because he is the party in breach.
Subcontractor Disputes: When a construction company is contracted to complete a large project, there is typically 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. However, the general contractor (the one that the landowner hired to do the work) is still responsible 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 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 permits 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 Mentor, Ohio 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 essential to hire a Mentor, Ohio construction disputes attorney, who can advise you on the next steps in the process.