Firm News

Resolving Disputes In Building Projects

Construction workers on a scaffold.

Building projects are often an effective way for businesses to grow and expand, developing their influence and increasing their cash flow. However, this kind of construction work is often complex, involving multiple contractors, schedules, construction companies, and legal obstructions. Disputes and roadblocks are not uncommon, and these can slow down construction, cost money, or even lead to legal action in extreme cases. Resolving disputes efficiently and comprehensively can help ensure the business’s growth and security.

For more information on resolving construction disputes, consider speaking with an experienced business litigation attorney from Schwab & Gasparini. Schedule a consultation by calling the relevant office at (315) 422-1333 in Syracuse, (518) 591-4664 in Albany, (914) 304-4353 in White Plains, or (914) 304-4353 in Hudson Valley.

What Is a Construction Dispute?

Construction disputes occur because the process of engaging in a building project is complex, involving financial, physical, and legal factors. Contractors and workers must be paid on time, materials cost money to provide, and there is the ultimate hope for profit once the project is finished. In addition, materials must be delivered on time, construction workers need time to finish the building project, and they may encounter unexpected complications in the middle of their work. Over all this, the agreements between parties are governed by legal contracts detailing the time, cost, and other factors involved in the building project.

When one or more of these aspects conflict with another, a dispute may arise. When contracts are not met or the standards expected and implied by the payment are not met, this may lead to frustration and dissatisfaction for either or both parties. In this case, resolving disputes becomes key to continuing with the construction and finishing the building project.

Common Construction Disputes

Each building project is unique and may lead to individual challenges specific to that project. However, many common construction disputes may challenge a majority of construction projects. The Building and Construction Trades Council of Greater New York may assist in jurisdictional disputes.

Payment Disputes

One of the more common building project disputes is that of payments. Construction workers may feel cheated or neglected if contracts are not clear or if payment is not delivered on time. The State of New York is generally in favor of the contractor in these situations, as per the Prompt Payment Act. Many contractors may be legally allowed to suspend work if payment is not offered within the requisite timeframe.

Breach of Contract or Warranty

Most building projects involve at least one contract, and many more complex projects may involve multiple. If the standards or expectations of the contracts are not fulfilled, this may lead to a breach. Breaches can be costly and difficult and can occur on the part of the contractor or the employer. Understanding and clarifying the details of the contract can help relieve missed expectations and help in resolving disputes.

Adjoining Property Owners

In addition to these, sometimes the building project dispute isn’t with any of the contracted parties. Adjoining property owners may take issue with a building project, specifically if the construction interferes with the function or quality of their business endeavor or ease of access to the property. Adjoining property owners may have certain rights that need to be addressed when resolving disputes.

Delay and Inefficiency Claims

Occasionally, an employer may feel that their contracted crews are working inefficiently and causing unintended delays. This can cause additional financial strain on the business owner and can lead to losses if not addressed. In some circumstances, these delays could be due to workers failing to complete tasks on time, or they could be due to material insufficiencies from delays in the supply chain.

Poor Behavior From a Contractor

Depending on the contractors or subcontractors involved, a business owner may find themselves resolving disputes related to the behavior of their contractors. If employees are displaying rude or disrespectful behavior, that may reflect poorly on the employer. Being prepared to address these disputes and properly train or inform the contractors can help avoid this issue.

Construction Site Injury

Building projects also have common hazards that can lead to injury. Depending on the nature of the contract or the individual who was injured, this may lead to a construction dispute. Resolving disputes like this may involve insurance and determining liability for the injury, and could be costly if the employer is liable.

For more information on the various disputes that may arise regarding a building project, consider speaking with an experienced New York business litigation attorney from Schwab & Gasparini.

How to Resolve Construction Disputes

Resolving disputes regarding building projects may be challenging, as there are often multiple factors at play that complicate the situation. Understanding how these relate to each other, and what laws govern their resolution, can be taxing and financially burdensome if managed incorrectly. There are several important differences and benefits to both arbitration and litigation.

Some employers and business owners opt for litigation if a dispute cannot be resolved. This allows the courts to decide who is in the right and who is in the wrong. However, this method of resolving disputes may be costly and could damage relationships with contractors and hurt the business in the long run.

An alternative to this course of action is to employ Alternative Dispute Resolution or pursue mediation. Oftentimes, an experienced negotiator and mediator can help resolve disputes over building projects where both parties can walk away happy with the result. Just as there are a myriad of disputes that can arise in the construction and business industries, there are often many solutions that may present themselves to a skilled mediator.

Contact a New York Business Litigation Attorney Today

Construction of building projects may be a viable way for a business to grow and expand its influence. In many fields, such as real estate development, this is the primary function of the business itself. For those interested in growing and developing property, understanding the importance of resolving disputes quickly and equitably is crucial. A business that can keep its employed contractors and subcontractors on track and happy can avoid loss due to costly disputes and delays.

A skilled and experienced business litigation attorney from Schwab & Gasparini can help clients navigate the landscape of building projects and construction disputes with clarity and understanding. Consider scheduling a consultation by calling the relevant office at (315) 422-1333 in Syracuse, (518) 591-4664 in Albany, (914) 304-4353 in White Plains, or (914) 304-4353 in Hudson Valley for more information.

Sun Nov 17 2024, 12:00am