Insights

Insights and articles written by our team

Four methods for resolving construction disputes

Just like any other type of business in California, construction disputes can arise between property owners, contractors and subcontractors. Construction disputes can be costly and time consuming. However, there are several methods for resolving a construction dispute in a way that is acceptable to all involved. Negotiating a resolution before the dispute begins Sometimes it is possible to agree to a dispute resolution method before one arises. The parties to the construction contract may be able to negotiate an agreement prior to beginning work that if a dispute arises, the parties will try to reach a resolution between themselves before turning to other forms of relief. Mediating a dispute One form of alternative dispute resolution is mediation. The mediator is a neutral third party who facilitates discussions between the parties to the dispute as they work together to reach a satisfactory resolution. Mediation is not legally binding, but it can save time and money, as well as preserve a relationship that would otherwise deteriorate. Arbitrating a dispute Unlike a mediator, an arbitrator is a decision-maker. Arbitration is similar to a trial, but with different rules and requirements. In general, each side to the dispute will provide documents and facts to

Read More »

Common construction disputes in California

Construction companies are often hired by property owners or developers to build new buildings, perform renovations, and repair damaged properties. While it may seem straightforward, there are many disagreements that may arise at various stages of the construction project. When a dispute arises, it can be beneficial to have an attorney specializing in construction law on your side to protect your reputation, as well as your finances. What are some common causes of construction disputes? There are many possible reasons why a dispute may arise among owners, developers, contractors, subcontractors, and other parties involved in the project. Some of the most common reasons include: Contract issues Ambiguities, errors, and omissions in the contract itself can be a source of disagreement. Parties may disagree on what certain terms mean and the scope of work covered by the contract. Breach of contract Even if a contract is well-worded, a party may fail to adhere to the terms of the contract. A breach of contract may stem from: Failure to complete work in a timely fashion or unreasonable delays. Negligent supervision Poor workmanship Defective materials Failure to complete work or abandonment of the project Failure to pay contractors and subcontractors for work performed

Read More »

Contractors who work on homes need to know California’s laws

Many construction contractors in Orange County may work on repairing or improving private residences. Pursuing these opportunities can be a great chance for contractors to earn profits that will help them grow their businesses. However, they need to understand California’s rules regarding home improvement contracts. The rules require clear language and definite terms California’s rules about home improvement construct contracts can be detailed and difficult to apply. If a contractor either has specific questions or needs to have contract language drafted or reviewed, the contractor should consider speaking with an experienced attorney. In general, California’s laws require that all contracts with a value of $500 be in writing and in language that the average person can understand. The contract must cover several topics, including the following. It has to have a definite payment schedule. The maximum down payment allowed is either 10% of the contract’s price or $1,000, whichever is less. It has to include language which explains when and how the customer may cancel or rescind, that is, undo the contract. It will need to explain who will needed any legal permits needed and will also need to specify when the promised work is to be completed. There are

Read More »

How to prove liability for construction defects

There are many different types of construction projects in southern California. There are residential housing projects, small commercial projects, large building projects and many others. While the end goal of each project may be different, there are similarities in the general process of construction projects. They generally start with the design, then foundations are constructed and the outside framing of the building is built. The projects then end with the electrical, plumbing, HVAC and finishing touches inside the structure. There are many different steps along the way and many different contractors involved in the process. It is important that each contractor and subcontractor do their job and do it well. If any one of the contractors makes a mistake, it can affect the many aspects of the project and can create significant problems later on. These construction defects can also be very costly to repair as well. The owner may be able to receive compensation for the defect though depending on the cause of it. Types of liability for construction defects In order to receive compensation, the first step in the process is to determine who caused the defect. Then the owner needs to determine how the contractor is liable.

Read More »

Basics of a mechanics lien in California

There are many different projects that people need or want to have completed on their properties in California. Some of these projects can be completed by the owners themselves, but some projects are beyond their expertise or they simply do not have the time to complete them. In these situations the people may need to hire various contractors to complete the project. There are also many contractors and they rely on obtaining these various projects in order to build their businesses and earn a living. However, simply getting the jobs and doing the work by itself does not help them earn a living. In order to do this, they must actually be paid for the work that they perform. This does not always happen though and contractors may be forced to go through different methods of forcing customers to pay their bills. One of these methods is filing a mechanics lien. Requirements for mechanic’s liens These are liens that are put on the property where the work was completed and the lien amount is what the contractor is owed. In order to have a valid mechanic’s lien, it must meet certain requirements. The lien must state what is being claimed,

Read More »

What is arbitration and why might it be preferable to a trial?

When you have a legal dispute in California, is your only choice to litigate the matter in a trial? The trial process can be lengthy and expensive. For this reason, some individuals with legal disputes choose to arbitrate their issue, rather than immediately resorting to litigation. What is arbitration? Arbitration is an alternative dispute resolution process. Through arbitration, the parties along with their attorneys will have a hearing in which they will submit evidence and argue their case before an arbitration. The arbitrator is a neutral third-party and arbitration is a private process. The arbitrator will issue a decision about the dispute. This is different from mediation, as a mediator is not a decision-maker. The arbitrator may simply announce that they made a decision while other times the arbitrator will expand on that decision and provide their reasoning for coming to their conclusion. Arbitration can be binding, meaning the decision is enforceable by a court, or it can be non-binding meaning it will be final only if both parties accept it. What are the benefits of arbitration? Arbitration is similar to a civil trial, but arbitration is generally completed quicker and is less formal. Oftentimes the parties do not need

Read More »

Understanding scope of work terms in a construction contract

Getting a construction project off the ground can take a lot of work and cooperation between different parties. In California, a contractor may work with a number of subcontractors to complete quality work in a timely manner to finish the overall project on time. One way that entities working on a construction project can stay on the same page with regard to their duties is through scope of work terms in their construction contracts. Scope of work is an integral concept in construction and will be discussed generally in this post. No part of this post should be read as legal advice. All individuals with questions about construction contracts and project-specific terms should consult with California-based construction law attorneys. What is scope of work? Scope of work refers to the part of a project that a specific entity is responsible to complete. For example, the scope of work that an electrician must complete as a subcontractor on a commercial building project will be very different than the scope of work that a plumbing subcontractor on the same project must do. That is because each has a different expertise and skillset to bring to the construction site. Establishing scope of work

Read More »

The benefits of Alternative Dispute Resolution

There has been an increasing use in recent years of Alternate Dispute Resolution (ADR) options to settle disputes that previously would have been litigated. This is particularly important in situations where the opposing parties wish to preserve their partnerships or business relationships after the issues have been resolved. Why should you choose ADR? The benefits of ADR are numerous. First of all, the expense is a fraction of the cost associated with litigating a dispute, which include attorney billing, the fees associated with numerous motions and discovery, as well as other court filings and appearances. Litigation is by nature contentious, with both sides having a tendency to dig in their heels the longer the process goes on. And of course, the longer the process, the more expensive it is. There is more privacy and confidentiality in ADR cases. Where keeping the details of highly sensitive corporate information confidential is of paramount importance, the ADR option will provide a screen from the public eye that a public litigation cannot provide. This is of benefit to companies who wish to minimize future claims, especially in employment and discrimination settlements. If preserving business or employer-employee relations is of vital interest to the parties

Read More »

Litigants may benefit from the services of a referee

Particularly in complicated matters like major construction projects, there is always the possibility that any business deal can get tied up in litigation. The more parties that are involved and the more dollars at stake, the more likely that a legal dispute will arise. The reality is the federal courts and state courts in and around Orange County are overwhelmed with litigation. Therefore, it often makes since in terms of both saving time and money to consider some form of alternative dispute resolution. Discovery disputes can get resolved with the help of a referee California individuals and businesses needing to litigate have more and more options with respect to alternative dispute resolution. For instance, most litigation will involve what is called discovery, that is, the court-supervised collection of information and evidence about each side’s case. Not surprisingly, a lot of additional litigation revolves around disputes about what each side’s rights and obligations are. In the worst case scenario, discovery disputes can cost as much if not more time and expense than the original dispute. In this respect, retaining the services of a discovery referee may be helpful. The discovery referee can spend time handling the discovery process to make sure

Read More »

How does ADR work in California?

Legal trials may not always be the best way to resolve legal disputes. Sometimes, alternative dispute resolution can be a cheaper, quicker and less stressful means to settle disputes. California uses ADR methods such as mediation, settlement conferences, neutral evaluation and arbitration. Arbitration A neutral arbitrator hears arguments and evidence from each party and then decides the dispute outcome. Arbitration is less formal than a trial. Arbitrations may be binding. Parties waive their rights to a trial and agree that the arbitrator’s decision is final. Usually, bindings decisions cannot be appealed. In nonbinding arbitration, the parties may request a trial if they do not accept the arbitrator’s decision. Penalties may apply if trial does not result in a more favorable decision. Arbitration may be appropriate if the parties want another person to decide their dispute without undergoing a trial. It is also helpful in complex matters where an arbitrator’s  training and experience can deal with a dispute’s technical matters. Mediation An impartial mediator assists the parties with reaching a dispute resolution. Mediators do not decide disputes but help the parties communicate and reach their own resolution. Qualified mediators listen to the parties and help them effectively and positively communicate with

Read More »

ready to take your business to the next level?

Get in touch today and receive a complimentary consultation.