Construction Dispute Law in Pennsylvania
Landowners and contractors in New Freedom, Pennsylvania 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.
Most often, landowners and construction contractors are able to resolve minor to moderate disagreements between themselves, and litigation is rarely necessary. Nobody likes litigation, so, to this end, most construction contracts have built-in remedies in case something goes wrong, like set price reductions if construction is delayed.
Even if a third party gets incorporated, it does not always need to be a court. Private mediators can assist 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.
Litigation of construction disputes in New Freedom, Pennsylvania can be extremely time-consuming, stressful, and costly. Nevertheless, there are (relatively rare) occurrences where it is the only option.
Examples of Construction Disputes That Might Lead to Litigation in New Freedom, Pennsylvania
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: If the contractor completes the project, and the owner refuses to pay the agreed-upon price, the contractor will typically file a lawsuit to recover what is owed. Of course, the owner will typically 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.
Subcontractors: Subcontractors are hired by general contractors to assist them in large construction projects, typically specialized tasks like installing plumbing. Nonetheless, 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 essentially 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 declines 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 New Freedom, Pennsylvania 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 crucial to hire a New Freedom, Pennsylvania construction disputes attorney, who can advise you on the next steps in the process.