Construction Contract Dispute Attorney in Minnesota
In the construction field, disputes regarding contracts are all too common. Payment issues are one of the most common triggers of construction contract disputes, especially when project costs increase or timelines are extended. From the construction of large skyscraper buildings in downtown Minneapolis to renovating a home in St. Cloud, a Minnesota contract dispute lawyer can help.
At Minnesota Construction Law Services (MNCLS), we bring practical insight from owning and operating businesses ourselves, which helps us address contract disputes with clarity and efficiency. These disputes often arise due to the complicated and intricate nature of the construction process in the Land of 10,000 Lakes. Equipped with both our skills and experience, we are here to protect your legal rights, mitigate any financial risk, and seek a resolution for your contract dispute case.
When you work with MNCLS, you can receive legal attention focused on preventing disruption to your business operations. We help clients avoid litigation where possible by addressing disputes early and decisively. Working with MNCLS helps contractors avoid costly legal setbacks and maintain steady operations. Our goal is to resolve contract disputes quickly so you can return to managing your business.
Resolving Construction Contract Disputes
Contracts are the foundation of a solid construction project. A contract provides the ‘rules of the game,’ meaning it clearly outlines the responsibilities, expectations, and deliverables of each party involved in the project. A well-drafted contract sets expectations, prevents disputes, and supports project success. If the construction contract is not carefully drafted it can cause significant disruptions to the project.
Your contract is the most important communication tool of the entire construction project. It can prove vital to ensure a contract includes all the project details and how different potential situations may be handled should they arise. This makes disputes easier to resolve—and in some cases, prevents them entirely.
The two most common problems are misinterpreting contract terms or failing to address key issues in the contract; and when there is a lot of money at stake, these problems can be very expensive.
While we are your construction contract lawyer, we also bring a business-minded approach to legal representation. Using our range of legal tools and business experience, we have numerous approaches to solving the dispute or breach of a construction contract. Our goal is to uphold the contract for the construction work so our clients receive the agreed-upon compensation while preserving their reputation and partnerships.
Minnesota Construction Law Services keeps the simple simple
Our Four-Step Process for Resolving Contract Disputes
Step One: Learn your objectives and goals
We want to understand how you define a successful outcome. For transactional issues, what are the important issues that need to be addressed in the document we are drafting? For disputes, what is the desired resolution or outcome?
Step Two: Understand your concerns and issues
For transactional, what have the parties agreed to and has an agreement been reached on all the key issues? For disputes, we need to know whether the contract addresses the issue, how it was addressed, who’s at fault, and what damages resulted.
Step Three: Craft the strategy
For transactional, we draft a document that will achieve the desired outcome and reflect the client’s business. For disputes, we uphold the obligations stated in the contracts and/or determine reasonable remedies for issues not addressed in the contract.
Step Four: Implement the remedy
Following the strategy developed with and approved by the client, we move to achieve the intended result. Whether drafting a document or resolving a dispute, we keep you informed throughout the process so you can stay focused on running your business.
Common Issues in Construction Contract Disputes
When a dispute arises over the construction contract, or rules of the project, it often requires a third-party to help mediate and navigate the solution. When each party is deeply involved in the project, without a neutral third party, minor disagreements can escalate and delay project completion. As an experienced construction lawyer, we know how to address each party’s concerns while protecting the rights and interests of our clients to streamline the communication process and resolve the dispute.
In 2022 alone, the value of all total contract disputes in the United States is estimated to be in the tens of billions of dollars. In Minnesota, our attorneys have seen several different kinds of construction contract disputes, including the following:
- Disputes regarding payment. One of the most common kinds of construction contract disputes involves disagreements regarding payment. In the construction industry, these disputes often involve high-dollar claims. One of the more common disputes arises when an employer allegedly fails to pay their employees on time for the work they have done, commonly called wage theft.
- Disputes regarding construction quality. When there are disputes regarding the quality of construction, this can lead to a wide range of legal issues. These disputes can arise when there have been any alleged inconsistencies in the execution, inspection, or creation of the property at any step of the process. There are many factors that can cause these disputes, like allegedly flawed designs or the use of poor construction materials.
- Disputes over project progress or delays. One of the most important elements in a construction contract is the progress of the project itself. This aspect works to determine the timeline of the project and how all the parties involved will coordinate to ensure this timeline is reached. However, if there is a dispute regarding the timeline or the project is otherwise disturbed, these kinds of contract disputes can arise.
- Disputes regarding the unilateral termination of contracts. One of the most contentious disputes that can arise between parties involved in a construction contract is the unilateral termination of these legal documents. Unilateral termination without following contract provisions often leads to high-stakes legal disputes.
In Minnesota, there are several common causes that contribute to the frequency of these disputes. The most common reasons why these disputes may arise include:
- Climate issues. Minnesota, no stranger to harsh weather, sees an average snowfall of around 54 inches in places like Minneapolis, with that number only increasing the farther north you venture, such as to cities like Duluth. Tough winter weather can bring about delays or even damage to construction sites, which can, in turn, lead to contract disputes.
- Rural dynamics. In the greater Minnesota area, in places like Mankato or St. Cloud, there is a much lower contractor availability percentage. The state’s 8th largest employing industry is construction, but many of these construction companies operate in larger areas, so delays and complaints about limited access to contractors are common in rural areas.
- Urban sprawl. In areas such as St. Paul or Minneapolis, the number of commercial construction permits has increased over the last few years. With an increase in contracts, statistically, there is also an increase in contract disputes.
How Minnesota Construction Law Services Can Help
Our team at MNCLS applies in-depth knowledge of local, state, and federal construction laws to protect your business in contract disputes. We represent a range of industry professionals—contractors, subcontractors, architects, and engineers—through every stage of a contract dispute.
At MNCLS, we can help you and your business in the following ways when it comes to a construction contract dispute:
- Payment negotiations. At MNCLS, we can help oversee all payment due dates and all contracts regarding your employees to ensure timely and accurate payment to all parties. This helps prevent payment-related disputes before they arise.
- Lien examination. As a contractor, we can represent you if you need to file or defend against a claim for a mechanics’ lien. We can act as the facilitator in all filing, serving, defending against, or seeking to dismiss a mechanics’ lien claim.
- Project administration. We provide legal oversight throughout the project to ensure contract terms are met and risk is minimized. This can help prevent any questions of legality regarding the build in the future.
- Overseeing contracts for employees. Our attorneys support employment contract review and enforcement to reduce the risk of internal disputes or breaches. We investigate potential breaches and clarify whether employees fulfilled their contractual obligations.
Speak With an Experienced Contract Dispute Lawyer in Minnesota Today
A legally binding construction contract is required before work begins on any project in Minnesota. When disputes arise regarding these contracts, an attorney can help protect your rights, minimize any potential damage, and save you both time and money. We work to minimize disruption to your business and resolve disputes efficiently.
Resolving these disputes takes both experience and a deep understanding of Minnesota construction law, as well as strong negotiation skills. At MNCLS, we
guide you through every step of the dispute resolution process to protect your time, money, and business reputation. Contact our offices today to schedule your initial consultation.
FAQs
For construction contract disputes, there are multiple options to consider when trying to resolve the issue. After analyzing the issues in dispute, we help you understand your position and rights while providing available resolution options that are best for your case. The validity of your case is highly individualized and dependent on the contract.
We start by analyzing the contract to understand the initial rules of the game. From there, we outline both the non-legal and legal resolution options. Depending on the situation, we will recommend and lead clients through non-legal routes that will safeguard their business. Yet, if the dispute has unreasonable expectations or we need to press our client’s position in the dispute, we have the legal expertise to protect our clients.
We are as comfortable working with opposing counsel for early resolution as we are with taking more complex options such as mediation, arbitration, or trial.
The cost is largely determined by the willingness of both parties to solve the dispute quickly and efficiently. As the dispute heightens, so does the cost. Ultimately, if the contract addresses the dispute issues, then it will easily negate the claims; this is why we keep explaining to clients the importance of having a well-drafted comprehensive construction contract.