Common Construction Disputes

Construction disputes can arise at almost any stage of a project. Delays, cost overruns, defective work, payment disagreements, and contract disputes are among the most common problems faced by homeowners, property owners, contractors, and subcontractors.

Common construction disputes may involve:

• Construction delays or missed deadlines
• Unexpected cost increases or budget overruns
• Poor or defective workmanship
• Disagreements over the scope of work
• Unapproved change orders
• Failure to complete contracted work
• Nonpayment for completed construction work
• Disputes involving warranties or building materials

These problems can affect project schedules, budgets, property values, and relationships between owners, contractors, subcontractors, and suppliers. Addressing a dispute early can often prevent the situation from becoming more complicated and expensive.

Your Rights Under a Construction Contract

Every construction project should begin with a clear and detailed construction contract. A well-written contract establishes the responsibilities of each party and provides important protections if disagreements arise.

When a construction dispute occurs, the contract is often one of the most important documents used to determine the rights and obligations of the parties.

Important Construction Contract Terms

• Scope of work: A detailed explanation of the construction, renovation, repair, or services that will be performed.
• Project timeline: The expected start date, completion date, and important project milestones.
• Change order process: The procedure for requesting, approving, documenting, and pricing modifications to the original project.
• Payment terms: The amount and timing of payments, including deposits, progress payments, and final payment requirements.
• Warranties: Promises or guarantees regarding workmanship, materials, repairs, or other aspects of the completed project.
• Dispute resolution: Contract provisions explaining whether disputes will be handled through negotiation, mediation, arbitration, or litigation.

Reviewing these provisions carefully before signing a construction agreement can help reduce misunderstandings and provide greater protection if a dispute develops.

What Happens When a Construction Project Goes Wrong?

When a contractor fails to perform the agreed-upon work, provides defective workmanship, misses important deadlines, or abandons a construction project, a homeowner or property owner may have legal options.

Contractors and subcontractors also have rights. When properly completed work is not paid for, they may be able to pursue payment through contractual remedies or other legal procedures available under applicable construction law.

Common Legal Options in Construction Disputes

• Demand letters: A formal written request asking another party to correct a problem, complete work, make payment, or provide compensation.
• Mediation: A process in which a neutral third party helps the parties attempt to reach a negotiated settlement.
• Arbitration: A dispute-resolution process that may be required by the construction contract and can provide an alternative to traditional litigation.
• Construction liens: Contractors, subcontractors, or suppliers may have the right to pursue a construction or mechanic's lien when payment requirements are not met, subject to applicable legal deadlines and procedures.
• Construction lawsuits: Litigation may become necessary when negotiation or other dispute-resolution methods cannot resolve the disagreement.

The appropriate option depends on the construction contract, the nature of the dispute, the amount involved, applicable deadlines, and the laws governing the project.

How to Protect Yourself Before Starting a Construction Project

Many construction disputes can be prevented—or made easier to resolve—through careful preparation and documentation. Whether you are a homeowner planning a renovation, a property owner beginning a commercial project, or a contractor accepting new work, it is important to protect your interests from the beginning.

Before and during a construction project, consider taking the following steps:

• Review the construction contract carefully before signing.
• Make sure the scope of work is clearly defined.
• Confirm project costs and payment schedules in writing.
• Verify appropriate contractor licensing and insurance when required.
• Document change orders and additional work in writing.
• Keep copies of contracts, invoices, receipts, emails, photographs, and text messages.
• Document the progress of the construction project.
• Communicate regularly with contractors, subcontractors, and project managers.
• Address potential construction problems as soon as they arise.

Get Help With a Construction Law Matter

Construction disputes can become complicated quickly, particularly when significant property damage, unfinished work, unpaid invoices, contractual disagreements, or construction liens are involved.

If you are facing a construction dispute or want guidance before entering into a construction contract, obtaining legal advice early can help you better understand your rights, obligations, and available options.

If you need assistance with a construction-related legal matter, I am here to help you understand your rights and protect your interests throughout the process.