Drone footage of the inside of a house under construction surrounded by building equipment taken at sunrise in spring 2019
Share on Facebook
Share on Twitter
Share on LinkedIn

Complex construction in a busy area like Manhattan can sometimes lead to intense legal disputes, ultimately requiring litigation to resolve. In order to handle these disputes effectively, you first need to understand what sort of disagreements are likely to arise. Let’s explore some of the most common types of construction disputes, as well as how to respond to them.

Common Types of Construction Disputes

Parties in a construction project may get into various legal disputes. Some of the most common kinds of disputes include:

  • Contract disputes: Construction contract disputes may arise due to parties’ breaches of contract, disagreements over the scope of work, or disputes over interpretation of contract terms. 
  • Payment disputes: Parties in a construction project may have disputes over payment, including delays, failure to make payments, increased materials costs, or retainer of advanced payments. 
  • Construction defects: Construction defects can take the form of design defects (errors in the project’s architectural or engineering designs), materials defects (using incorrect or substandard construction materials), or workmanship defects (negligently performed construction work by contractors). 
  • Project delays: In some cases, contractors may bear financial liability for delays in meeting project milestones, especially when construction contracts include “time is of the essence” clauses or impose firm milestone deadlines. Due to the difficulty in calculating losses caused by delays, construction contracts may grant the property owner liquidated damages for project delays. 

Methods for Handling Construction Disputes

Parties facing a dispute over a construction project in Manhattan may pursue various methods to resolve their disagreement:

  • Negotiation: Parties may directly negotiate with one another or through their legal counsel to reach a compromise that resolves a budding dispute over a construction project. Negotiation can help preserve a business relationship and keep a construction project on track. 
  • Mediation: When construction disputes escalate, parties may resort to mediation to have a neutral third party facilitate settlement negotiations. Many construction contracts obligate parties to attempt mediation before further litigation. 
  • Arbitration: Construction contracts can include arbitration provisions requiring parties to resolve legal disputes through arbitration instead of traditional court litigation. Many arbitration services offer specialized arbitration panels to handle construction disputes. 
  • Litigation: In some cases, parties may resort to lawsuits to resolve construction disputes that negotiation or alternative dispute resolution has failed to settle. 

How Can an Attorney Help You Handle Construction Litigation

An experienced commercial litigation attorney can help you handle construction disputes headed to litigation by:

  • Thoroughly investigating the circumstances leading to the dispute to recover evidence that can support your case, including copies of contractual agreements, communications between the parties, and photos/videos of the construction site
  • Evaluating your legal options for resolving disputes, including direct negotiations between the parties, mediation/arbitration, or formal court litigation
  • Advising you at each stage of the case to help you make informed decisions
  • Vigorously advocating for your rights and interests at the negotiation table, in arbitration, or in court

Tips for Preventing Construction Disputes

Property owners and construction companies in Manhattan can avoid construction disputes and costly litigation by following several critical tips:

  • Having clear, detailed contracts: A construction contract that clearly defines terms, timelines, and dispute resolution mechanisms can help avoid or reduce the expense of disputes that may arise between developers and contractors. 
  • Keeping thorough documentation: Parties can leverage project management tools to keep track of documentation, schedules, and budgets and involve key stakeholders in decision-making to avoid potentially devastating communication issues. 
  • Maintaining regular communication: Developers and contractors should communicate constantly throughout a construction project to address issues as they arise before they spiral into significant issues that trigger litigation. 

Contact a Real Estate Litigation Lawyer Today

When you find yourself in a legal dispute concerning a construction project in Manhattan, you need experienced legal counsel to advocate for your rights and interests in litigation. Contact Levy Goldenberg LLP today for a confidential consultation with a knowledgeable real estate litigation lawyer. We’re ready to discuss your options for handling construction disputes or litigation to pursue a favorable resolution.