CONSTRUCTION AND/OR CUSTOMER DISPUTES

Because of the inherent risk of uncovered losses, and the difficulty of obtaining liability coverage once you have been subject to a serious lawsuit, prudent contractors make every effort to resolve customer disputes before litigation starts.  Probably the most fertile source of construction defect claims is the contractor’s filing a mechanics lien to collect unpaid change order amounts from project owners. 

Frequently, project owners who have gotten themselves in over their heads financially, find themselves with little choice but to institute a construction defect claim in order to generate sufficient bargaining power to have the contractor’s lien released.  Once they hire a construction defect lawyer, however, the dispute often spins out of control with the homeowner asserting claims far in excess of the contractor’s original lien amount.

Prudent contractors protect themselves against this scenario by preventing change order costs from outrunning their customer’s financing.  They also use considerable restraint in filing mechanics liens or lawsuits to collect from project owners.  They recognize that it is the rare construction project that cannot be unfavorably dissected by a team of construction lawyers.     

Often the subcontractor and general contractor will not be in agreement on the interpretation of the plans, or the method of construction.  In this case it is imperative that the discussion and final conclusion be in writing.  This will be the only way to determine who is actually at fault several years later when a problem arises.