Ridout Barron


Navigating a dispute regarding a construction lien

Every day, numerous construction projects are unfolding across Alberta. Construction projects are complicated by nature and susceptible to delays, cost overruns and other issues. These complications often result in disputes. In some cases, a construction company will put a lien on a building if the dispute has led to non-payment.

In the event that a dispute has led to a construction lien, a lawyer with a background in construction law may be able to resolve the conflict and have the lien released. Time is of the essence when it comes to resolving a business dispute: The longer the dispute lasts, the more each side will suffer financially.

Getting the facts straight is a key component to resolving a business dispute. The first step a lawyer might take is to investigate the case to learn the facts and understand the dispute. Some common causes of construction disputes are problems between contractors and subcontractors, project delays, payment delays and quality issues.

Depending on the nature of the conflict, it may or may not be possible to salvage the business relationship. If the relationship cannot be salvaged, the lawyer may focus on either negotiating for or litigating to achieve a financial settlement.

One way to minimize the risk of becoming embroiled in a business dispute is to perform due diligence, which is doing in-depth research prior to entering into a contract. Another aspect of due diligence is the drafting of contracts and agreements, which is another area in which a lawyer's advice could make a crucial difference. After all, the more thorough the original contract is, the more easily a dispute can be resolved in the future. To learn more about construction liens and other business disputes, please visit our construction lien dispute page.

Source: Ridout Barron, "Construction Lien Dispute", November 05, 2014

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Ridout Barron

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