Construction Dispute Law in Ohio

Owners of real estate in Washington Court House, Ohio 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.

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 normally able to resolve disputes amongst themselves. After all, both stand to gain if the project is completed, and the contractor is paid.

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).

Construction Dispute litigation in Washington Court House, Ohio is normally time-consuming and expensive. But it is sometimes necessary, normally as a last resort.

Examples of Construction Disputes That Might Lead to Litigation in Washington Court House, Ohio

Major Delays: If the contractor or a subcontractor is at fault in causing a massive 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 normally award the owner any damages that were caused by the 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.

Subcontractor Disputes: When a construction company is contracted to complete a large project, there is normally 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: If the contractor sues a land owner and wins, he will likely obtain a monetary judgment. If the owner refuses to pay, the contractor needs some way to recover. This is where the mechanic's lien comes into play. It authorizes a contractor to force the sale of the land or other real property that he just worked on, and use those proceeds to cover costs.

Can a Washington Court House, 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 necessary to hire a Washington Court House, Ohio construction disputes attorney, who can advise you on the next steps in the process.