4 Basic Factors In All Construction Litigation
Construction litigation is a common problem because there are bound to be disputes about how well a job was handled. Every attorney in the field will ask a handful of basic questions about each case, and it can be helpful to think about these concerns before conducting a consultation.
Scope
At its core, a dispute over construction work is fundamentally a form of business litigation. That means the first question that has to be addressed is whether a complaint is contained within the scope of the contract.
One of the main arguments for hiring a general contractor who then assigns tasks to subcontractors is to guarantee that all the work being done will be encompassed by the main contractor. If there's a problem with the electrical system, for example, you'd likely still focus your construction litigation efforts on the general contractor, not the subcontractors.
Ripeness and Exhaustion
Two questions that most courts want to address in civil litigation are whether the issue is ripe for review and whether the two parties have exhausted the available remedies. Ripeness refers to the idea that a problem has progressed to the point that it deserves to be reviewed by a court. If delays are ongoing but they haven't exceeded the scope that the contract set out for completing the job, then the matter may not be considered ripe. Exhaustion means showing the court that a good-faith effort was made to solve the problem by making modifications, indemnifying the upset party, or some other arrangement.
Documentation
Throughout construction work, a lot of documentation will change hands. It's not uncommon, for example, to produce a punch list at the end of a project. A punch list itemizes work that either hasn't been completed or that wasn't finished to the customer's satisfaction. Producing such documentation with accompanying signatures can help a party show that certain issues were acknowledged and that a best effort was made to address them. This can go a long way to showing the court that you've exhausted less legally aggressive remedies.
Liens and Bonds
Another factor that features prominently when construction litigation gets rolling is the question of how problems will be paid for. If a contractor believes they weren't properly paid, for example, they might seek a lien against the property. Similarly, a customer who is upset might pursue compensation based on the contractor's bond. This can get especially complicated in states where subcontractors have similar rights to contractors, potentially creating unexpected conflicts with property owners.
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