Decades Of Experience Working For You

In a dispute over construction, experience is important

On Behalf of | Nov 9, 2022 | Business & Contract Litigation |

Once an investor acquires usable land in the greater Phoenix area, they will usually have to build a residential community or commercial buildings on it.

Construction projects are an important part of almost any real estate investment. When they go as planned, the end result is homes or buildings that will benefit both the investors and the general public.

However, a lot can go wrong in the course of a construction project, even when everyone has done their utmost to make sure there are no misunderstandings.

Construction projects involve many parties who have legal obligations to each other. Investors will hire a contractor to complete the work, and the contractor will retain subcontractors to handle various portions of the project.

Sometimes, for financial or other reasons, someone higher up the chain, like a contractor, will not pay someone lower on the chain, like the subcontractor, when they should.

Under Arizona law, the subcontractor can then place a lien against the building they worked on. This is known as a mechanic’s lien.

This is a problem for an investor since the lien could end with their investment being sold in foreclosure, even if the investor had nothing to do with the dispute between the contractor and subcontractor. The investor may have to get involved and use legal proceedings to protect their rights.

Construction and design defects may also cause problems for investors

On the other hand, sometimes those hired to do construction projects or to design structures do not do a good job.

In some cases, a subcontractor may not even complete the work they agreed to do or may fail to pay their suppliers.

In other cases, they may use substandard materials or improper construction techniques. They may also just not follow specifications when doing their work.

These situations can end with all or part of a building being unusable or, at best, less valuable than planned. Investors who were expecting better can explore their legal options under Arizona law.

However, doing so may require using a legal professional with detailed knowledge of how the construction industry works.