Construction Dispute Law in Wisconsin

Construction contractors and landowners in Baraboo, Wisconsin sometimes end up in disputes when a project that the landowner contracted for doesn't go exactly to plan. Truth be told, in any significant construction project, a few minor disputes are almost guaranteed.

Normally, contractors and landowners can resolve minor disputes amongst themselves, without having to resort to litigation. Commonly, 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.

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 Baraboo, Wisconsin 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 Baraboo, Wisconsin

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.

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." Rather, 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.

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 Baraboo, Wisconsin Attorney Help?

Construction disputes can be time-consuming and costly. Hiring a brilliant Baraboo, Wisconsin real estate attorney can make it much easier to deal with such disputes, and help you avoid litigation, or prevail if litigation becomes necessary.