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How to Handle Construction Contract Disputes

Unfortunately, construction disputes will happen from time to time when dealing with contracts. It doesn’t matter how many proper steps you take, there will be misunderstandings. When these disputes arise, speak with an attorney who understands construction law to help you through. 

Common Contract Disputes

Construction contract payment disputes happen all the time despite clear contracts in place. There are several different types of contract disputes:

·      Lack of understanding the conditions of the contract

·      Delays (failure to comply in a timely manner)

·      Failure to administer the contract (failure to adhere to conditions)

·      Incomplete claims by parties involved (failure for payment)

·      Changes to contracts

The most common dispute is the failure to pay. If your contract clearly states payment details, you should have no problem being able to get the money you are owed, especially with the legal representation of a skilled construction law attorney. 

Disagreements over modifications and amended plans occur quite often as well. These disputes are usually during the construction process or after the project is finished. Plans should never be confusing, but when they are, things can be misinterpreted easily. All plans should be just like contracts, clear and concise with all details included. 

Of course, miscommunication can cause costly delays along with disputes and even legal issues, costing you more money and time in the end. Sometimes, there is no communication and updates about delays in the project aren’t projected. In addition, inadequate reasons or explanations are also going to raise disputes. At the end of the project, if any defects are found, it could result in a dispute. Communication should always be strong and any changes or delays to the project should be communicated right away. 

Try to prevent these disputes from providing a clear and complete contract meaning a clear understanding of rights, obligations, and consequences of a breach of contract.

Resolving and Handling Disputes

You can try to resolve disputes on your own, but it is best to work with an experienced construction attorney. 

·      Address the issue promptly

·      Be aware that there could be a number of conflicts present

·      Try to reach an agreement between parties with the help of lawyers, but without needing to attend court

·      Be aware of other options such as mediation. This is where a mediator acts as a judge, but it is less costly and less time consuming than court 

·      Negotiation is another option. This is when both parties reach an agreement over the dispute, where everyone is satisfied

·      Arbitron is also common. Just like mediation uses a neutral party to help resolve disputes

·      Litigation is the last resort when there is no other resolution. This is costly and time-consuming

Statute of Limitations

Remember, each state has its own statute of limitations when it comes to filing a lawsuit to resolve disputes over construction contracts. In the state of Arizona, you have six years to dispute a contract and this starts when the project is finished.

Working with an Attorney

If you have been caught in a construction contract dispute, the team at Murphy Cordier PLC is well-versed when it comes to Arizona construction law and contracts. We proudly serve the greater Phoenix area, specializing in construction law. Our skilled and experienced attorneys can assist you during any construction contract disputes, offering the advice and legal representation you need.