Principal Attorney
Construction projects are complex, involving multiple parties, tight deadlines, and significant financial investments. Disputes can arise at any stage, from contract disagreements to delays and defective work, leading to costly litigation and project setbacks.
At Sul Lee Law Firm, we help Texas contractors, developers, property owners, and suppliers navigate legal challenges in construction disputes. Understanding the most common conflicts can help you proactively prevent them and protect your interests.
Breach of Contract Disputes
A breach of contract occurs when one party fails to fulfill its contractual obligations, whether it’s a contractor failing to complete work on time or a property owner refusing to make payments.
Common contract disputes include:
- Non-payment for completed work
- Deviations from agreed-upon project specifications
- Failure to meet deadlines or performance benchmarks
- Termination of the contract without valid cause
All agreements should be clear, detailed, and legally sound to minimize contract disputes. Texas courts enforce construction contracts strictly, so having a well-drafted agreement can make a significant difference in resolving disputes efficiently.
Payment Disputes and Mechanic’s Liens
Payment disputes are one of the most frequent issues in construction projects. Contractors, subcontractors, and suppliers may struggle to receive timely payment, leading to financial strain and legal action.
Texas construction law provides protections, including:
- Mechanic’s Liens: Contractors and subcontractors can file a mechanic’s lien against a property when they are not paid for their work. This legal claim prevents the property from being sold until payment is resolved.
- Retainage Issues: Many contracts withhold a percentage of the payment until the project is complete. Disputes often arise when retainage is not released on time.
Strict deadlines apply for filing lien claims in Texas, so seeking legal guidance early can help preserve your rights.
Construction Defects and Warranty Disputes
Construction defects can result in significant financial losses, property damage, and legal claims. Defects may stem from poor workmanship, design flaws, or defective materials.
Common defect-related disputes include:
- Structural failures (foundation cracks, roof leaks)
- Electrical or plumbing malfunctions
- Use of substandard materials
- Failure to meet building code requirements
Texas law provides various warranties on construction work, including statutory warranties under the Texas Residential Construction Liability Act (RCLA). Determining liability requires careful analysis of contracts, inspection reports, and project documentation if a defect arises.
Project Delays and Scheduling Conflicts
Construction delays can increase costs, liquidated damages, and contract terminations. Delays may be caused by factors such as:
- Unforeseen site conditions (soil issues, environmental hazards)
- Supply chain disruptions (materials shortages, delayed shipments)
- Labor shortages (difficulty hiring skilled workers)
- Weather conditions (hurricanes, severe storms in Texas)
While some delays are excusable, disputes often arise over who is responsible and who should bear the financial burden. Contracts should clearly outline delay provisions, force majeure clauses, and penalties for non-performance.
Permitting and Regulatory Compliance Issues
Texas construction projects must comply with local building codes, zoning laws, and environmental regulations. Disputes frequently occur when a project:
- Lacks proper permits
- Violates city or county zoning laws
- Fails to meet environmental impact standards
Non-compliance can lead to project shutdowns, fines, and lawsuits. Legal guidance can help ensure compliance with Texas construction laws and mitigate risks.
Disputes Between Contractors, Subcontractors, and Owners
Conflicts often arise between general contractors, subcontractors, and property owners over performance issues, scope changes, and unpaid invoices.
Key issues include:
- Subcontractors not completing work on time
- Disagreements over change orders and additional costs
- Miscommunication about project scope and expectations
Maintaining clear communication and well-drafted contracts with detailed terms can help prevent costly disputes.
Insurance and Bonding Disputes
Construction projects often involve various types of insurance and performance bonds. Disputes arise when insurance claims are denied, delayed, or disputed, particularly in cases of:
- Worksite accidents and injuries
- Property damage claims
- Surety bond enforcement (failure to complete work or pay subcontractors)
Understanding the terms of construction insurance policies and bonds can help contractors and property owners resolve disputes effectively.
How to Prevent and Resolve Construction Disputes
While disputes are common, proactive measures can help avoid litigation and keep projects on track:
- Use well-drafted contracts: Clearly define obligations, payment terms, and dispute resolution procedures.
- Maintain accurate records: Keep detailed documentation of invoices, emails, change orders, and progress reports.
- Communicate openly: Address issues early to prevent escalation into costly legal battles.
- Consider mediation or arbitration: Many construction contracts include alternative dispute resolution (ADR) clauses, which can resolve conflicts faster and more cost-effectively than litigation.
Sul Lee Law Firm: Protecting Texas Construction Professionals
Whether you’re a contractor, developer, property owner, or supplier, construction disputes can delay projects and threaten financial stability. At Sul Lee Law Firm, we help clients throughout Texas navigate complex construction law issues and resolve disputes efficiently.
If you’re facing a construction dispute, contact Sul Lee Law Firm today to discuss your legal options and protect your business interests.