Construction Dispute Law in Tennessee
Landowners and contractors in Jackson, Tennessee commonly 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, the owners of land and contractors can end disagreements before they get too serious, thus eliminating the need for litigation. Most contracts governing construction projects have built-in remedies for the most common problems, normally requiring the party that causes a delay or other problem to pay the other party a set fee.
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.
Litigating a construction dispute in Jackson, Tennessee is definitely not something that anybody likes doing. Nonetheless, it is sometimes necessary, as a last resort.
Examples of Construction Disputes That Might Lead to Litigation in Jackson, Tennessee
Construction Delays: Delays in construction are frequent sticking points between contractors and landowners. These delays can sometimes lead to litigation, especially if the construction contract makes it clear that time is an important factor, or if the contract mandates a certain completion date. In such situations, a court will often award the landowner compensation for any monetary losses he or she suffered as a result of the delay.
Refusal to Pay: Disagreements can also arise from a client's refusal or inability to hold up his end of the deal. Sometimes, once a project is complete, or nearly so, a landowner will express an unwillingness to pay the contractor for his services. There might be a variety of reasons for this - sudden loss of money, or dissatisfaction with the quality of the work are a few examples. It's rare that a client will refuse to pay a contractor simply because they don't feel like it (and if that is the reason, they'll normally come up with a better one to argue in court). In these cases, a court will occasionally have to decide if the client is obligated to pay the full price. If the work was, indeed, not up to the standards laid out in the contract, the contractor is not entitled to the full price, but is still entitled to the actual value of the work, even if it's substantially less than the contract price.
Subcontractor Disputes: With very massive 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. Nonetheless, it is the general contractor who is ultimately responsible to the owner for the satisfactory completion of the project. So, it is very crucial to the general contractor that subcontractors do a good job. If the subcontractor causes a delay or other issue, 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 Liens: A mechanic's lien is a way for a contractor to secure payment if a landowner declines 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 authorizes 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 Jackson, Tennessee 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 imperative, and a Jackson, Tennessee construction disputes attorney can be of great help.