Construction Dispute Law in Texas

Landowners and contractors in Hewitt, Texas often 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, usually requiring the party that causes a delay or other problem to pay the other party a set fee.

Even if disagreements can't be resolved amongst the parties to the contract, they don't need to take their dispute into the court system. For instance, construction contracts usually call for mediation or arbitration before any disputes are resolved by the courts. Mediation is a process by which a third party serves as a sort of intermediary in settlement negotiations between the parties to the contract. The mediator can help keep negotiations on track, and suggest possible solutions the parties might not have thought of. The mediator can't issue a binding decision, however. Arbitration is a procedure through which the parties agree to have their dispute resolved by a third party, which can render a binding decision. Arbitration can be quicker and cheaper than litigation, and it has some other advantages, as well.

Construction Dispute litigation in Hewitt, Texas is usually time-consuming and expensive. But it is sometimes necessary, usually as a last resort.

Examples of Construction Disputes That Might Lead to Litigation in Hewitt, Texas

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

Refusal to Pay: Contractors can be on the other side of legal disagreements, as well. Sometimes, the landowners who hired them refuse to pay. This is usually 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 further damages if the refusal to pay was done in bad faith, or if it caused foreseeable economic harm to the contractor.

Subcontractors: With big construction projects, contractors usually hire other, smaller contractors to do some of the work for them. This is usually work of a specialized nature, which the general contractor isn't equipped to handle (such as plumbing or electrical wiring). The general contractor is the one who is responsible for the satisfactory completion of the project. If a subcontractor makes a mistake, or causes a delay, the general contractor is ultimately liable to the person who hired them. Nonetheless, if they are sued for the mistakes of a subcontractor, and lose, they can then sue the subcontractor to recover their losses.

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 allows 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 Hewitt, Texas Attorney Help?

Construction disputes and disagreements can be very difficult to deal with alone. The assistance of a Hewitt, Texas real estate attorney can make the process of dealing with these disputes much quicker and easier.