Construction Dispute Law in Oregon
Landowners and contractors in Canby, Oregon frequently contract with each other for major construction projects. With any large construction projects, some small delays or problems are all but inevitable, but they don't usually derail the project or lead to major disputes between the parties.
Typically, contractors and landowners can resolve minor disputes amongst themselves, without having to resort to litigation. Frequently, construction contracts contain built-in remedies for mistakes and delays that can be easily corrected, such as payments to the owner for every day the project is delayed.
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 Canby, Oregon 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 Canby, Oregon
Delays: Some minor delays in a construction project are all but guaranteed to occur. Typically, if contracts require a specific completion date, the contractor will give itself longer than the project would take under ideal circumstances, to account for possible delays. Moreover, construction contracts usually attempt to insure against delays, such as imposing fees on contractors if the project is delayed beyond a certain point. If no such clause is included in a contract, a court will usually award the client damages that could have been reasonably anticipated at the time the contract was entered into.
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." Alternatively, 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.
Subcontractors: Subcontractors are hired by general contractors to assist them in large construction projects, typically specialized tasks like installing plumbing. However, no matter how much of the work is performed by subcontractors, the general contractor (the one that the client actually hired to do the project) is liable to the landowner as if it were doing all the work itself. This basically means that, if a subcontractor messes up, the general contractor is the one who gets sued. But all is not lost in such a situation. If the general contractor has to compensate the owner because of the mistakes of a subcontractor, it can sue the subcontractor for whatever it had to pay to the landowner.
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 permits 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 Canby, Oregon Attorney Help?
Construction disputes can be time-consuming and costly. Hiring a knowledgeable Canby, Oregon real estate attorney can make it much easier to deal with such disputes, and help you avoid litigation, or prevail if litigation becomes necessary.