To effectively resolve commercial construction contract disputes and maintain your reputation in the industry, it is important to follow these four steps:
1. Open direct communication with the client: Many disputes arise due to miscommunication. By promptly contacting the client and understanding their concerns and desired outcomes, you can work towards a resolution. Your attorney can use this information to negotiate a new agreement if possible.
2. Explore mediation: When parties cannot find common ground, a neutral third party mediator can assist in facilitating communication and finding fair solutions. Although less formal than litigation, any agreements reached through mediation are legally enforceable. It is crucial to have an experienced advocate to protect your interests during this process.
3. Consider arbitration: If mediation fails, arbitration may be a suitable alternative. Unlike mediation, an arbitrator has the authority to examine the facts and make a binding decision. It is essential to have legal representation to advocate for your rights during arbitration.
4. Preserve your lien rights: If you have a direct contract, you likely have lien rights against the property owner. Subcontractors must fulfill specific requirements to establish a lien. Filing and serving the necessary documents within the specified timeframes are crucial to perfecting a construction lien. Without a valid lien, your ability to resolve issues with the contracting party will be limited.
If all other options prove unsuccessful, litigation may be necessary. Having a knowledgeable firm that understands commercial construction regulations can greatly benefit your case. Carefully reviewing your contract, assessing your position relative to the other party, and understanding the strengths and weaknesses of your case are essential. Contact us for more information to help determine the appropriate steps to take.