At Rosenbaum & Taylor, P.C., we provide high-quality legal representation to businesses, individuals, insurance companies, and third-party administrators throughout New York. Our team offers cost-effective, personalized solutions across a wide range of matters, including litigation, contract drafting and negotiation, business disputes, and insurance coverage.
Construction disputes are common across projects in New York, from residential builds to large infrastructure developments. These disputes often involve payment issues, project delays, scope disagreements, or claims of defective work. When project participants fail to resolve problems early, costs rise and timelines suffer. Knowing what steps to take and when to involve a construction dispute attorney can help protect your rights, enforce contractual obligations, and keep your project on track.
In this blog, we explain the common causes of construction disputes, how to avoid them through proactive measures, what to do when disputes arise, and why working with an experienced Westchester construction dispute lawyer can make a critical difference in protecting your project and legal rights.
Common Causes of Construction Disputes
Construction disputes often start with small issues that grow when the involved parties fail to address them early. Identifying the root causes can help prevent further conflict and manage risks effectively across construction projects.
Contractual Misinterpretations
Many construction disputes begin with unclear or poorly written contracts. When contract terms are vague, parties may disagree on the scope of work, deadlines, or payment schedules. Misaligned expectations often lead to disputes about performance, project scope, or cost responsibilities. Clear language and detailed documentation help reduce the risk of such disputes arising.
Payment Disputes and Unpaid Invoices
Payment issues are among the most common sources of construction dispute. One party may claim work was completed, while the other party disputes the quality or timeliness. Disagreements over change orders, withheld payments, or delays in billing also trigger conflict. Under New York Lien Law § 3, contractors and subcontractors have the right to file liens if payments are not made.
Defective Work and Quality Disputes
A construction project can suffer delays or cost increases due to claims of defective work. These disputes often center on whether work meets contract specifications or industry standards. When quality is questioned, it may result in rework, additional costs, and finger-pointing between contractors, subcontractors, and suppliers.
Delays Caused by Labor Shortages or Scheduling Conflicts
Labor shortages, material delivery issues, and poor project scheduling can lead to construction delays. These delays may impact the project’s success and create disputes over who bears responsibility. Disagreements often stem from unclear scheduling obligations or lack of daily reports that track delays and disruptions.
Change Orders and Scope Creep
Changes made during a construction project often lead to disagreements. When the project scope expands without written approval or adjustment in the contract, disputes follow. Contractors may seek extra payment, while owners dispute whether the work was authorized. Proper documentation and clear procedures for change orders help avoid such conflicts.
Ambiguous Roles Among Project Participants
Disputes can arise when roles and responsibilities are not clearly assigned. A general contractor may believe a subcontractor caused delays, while the subcontractor points to missing information from the project manager. Without clear lines of authority, resolving construction disputes becomes more difficult.
First Line of Defense: Dispute Avoidance Through Proactive Measures
Many construction disputes can be avoided by using clear processes and strong documentation from the start of a project. Taking preventive steps reduces risk and supports the project’s success.
Use Clear and Detailed Contracts
Every construction contract should clearly define the scope of work, deadlines, payment terms, and dispute resolution procedures. Vague or missing language creates uncertainty and leads to conflict. Construction contracts should include provisions for handling change orders, delays, and defective work. Well-written contracts protect all involved parties and reduce the need for legal action later.
Keep Accurate and Consistent Daily Reports
Daily reports provide a written record of job site activities, including labor hours, deliveries, and delays. These records become key evidence if a dispute arises. Reports should be clear, timely, and consistent across all project participants. Accurate records support dispute resolution and help identify patterns early.
Communicate Often and Clearly
Open communication between contractors, subcontractors, and owners helps prevent small issues from growing into full construction disputes. Misunderstandings often start when one party assumes something that was never confirmed. Regular meetings and written updates help keep everyone aligned with the project scope and expectations.
Identify and Manage Risks Early
Construction projects involve many moving parts, and each one carries risk. Labor shortages, material costs, weather, and supply delays can affect performance. Identifying risks early allows project managers to adjust and avoid future disputes. Risk management plans should be updated as the project evolves.
Clarify Roles and Responsibilities
Disputes often happen when roles are unclear. Every participant in the construction process should understand their contractual obligations and authority limits. When everyone knows who is responsible for what, the chance of conflict decreases. This applies to general contractors, subcontractors, suppliers, and consultants.
Involve a Construction Dispute Attorney During Planning
Legal review at the start of a project is one of the best ways to prevent disputes. An experienced construction dispute attorney can review contract terms, advise on dispute resolution mechanisms, and ensure compliance with New York laws. Early legal guidance strengthens dispute avoidance and supports smooth project delivery.
What to Do When Disputes Arise
When construction disputes arise, a clear response plan helps reduce delays, control costs, and protect legal rights. The following steps offer a direct path for resolving construction disputes.
Review the Construction Contract
Start by reviewing the contract. Focus on the scope of work, payment terms, notice provisions, and dispute resolution mechanisms. These contract terms set the legal framework for how disputes should be handled. Look for sections related to change orders, termination rights, and agreed methods for dispute resolution. Understanding these clauses is critical before taking any further action.
Communicate with the Other Party
Open communication can help resolve construction disputes before they escalate. Speak with the other party directly and identify the specific issue. Use facts, not opinions. Keep the conversation professional and focused on the contractual obligations. If a resolution is possible through a direct conversation, it saves time and money.
Document All Events and Issues
Maintain a complete record of events. Save emails, written notices, site reports, photographs, invoices, and payment records. If the dispute involves defective work, delays, or unpaid invoices, strong documentation is key. This record will support your position during negotiations or if legal action becomes necessary.
Follow the Dispute Resolution Procedures in the Contract
Most construction contracts include a dispute resolution process. This may involve negotiation, mediation, arbitration, or litigation. Follow the steps listed in the contract. Skipping procedures may weaken your position. A contract may require formal notice before initiating arbitration proceedings or filing a lawsuit. Make sure all actions are timely and documented.
Consult a Construction Dispute Attorney
If the parties fail to reach agreement or the issue is serious, contact a construction dispute attorney. A construction dispute attorney will assess the legal standing, provide guidance, and explain the best dispute resolution options. Legal advice is especially important in disputes involving large sums, project delays, or potential claims under New York law.
Choosing the Right Construction Dispute Attorney
The right construction dispute attorney can protect your rights, reduce risks, and support a faster resolution. Choosing legal representation with experience in construction law is a critical step in resolving disputes effectively.
Look for Specific Construction Law Experience
Not all attorneys understand the construction process or the unique disputes arising from it. Choose a lawyer with experience handling construction projects, construction contracts, and disputes involving payment issues, defective work, or delays. An attorney who regularly works with contractors, developers, and project owners brings practical insight to the case.
Verify Knowledge of New York Construction Law
New York construction law has specific rules and statutes. These include the New York Lien Law, General Business Law, and Civil Practice Law and Rules. A qualified attorney should be familiar with local regulations, court procedures, and alternative dispute resolution methods used in the state. Legal advice grounded in New York law helps avoid costly mistakes.
Evaluate Their Approach to Dispute Resolution
Ask how the attorney approaches dispute resolution. Some disputes are best resolved through mediation or negotiation, while others require arbitration or litigation. A good construction dispute attorney will explain each option clearly and help you choose based on the contract terms and the facts of the dispute. Look for someone who can represent you in all forums, from informal talks to arbitration proceedings.
Check Their Communication and Availability
Choose an attorney who communicates clearly and responds promptly. Construction disputes often involve short deadlines and require fast decisions. Your attorney should provide guidance in plain language, keep you informed, and be available when new issues arise. A direct and focused approach supports faster resolution and fewer surprises.
Ask About Similar Cases Handled
It is helpful to ask if the attorney has handled disputes similar to yours. This includes issues like cost overruns, scope changes, or unpaid invoices. An attorney who has resolved similar construction disputes will understand the legal and practical challenges involved and offer proven strategies.
Seek Guidance From an Experienced Westchester Construction Dispute Attorney ASAP!
If you are dealing with a construction dispute in New York, do not wait for the issue to escalate. The team at Rosenbaum & Taylor, P.C. has extensive experience representing contractors, property owners, developers, and other parties in the construction industry. Our construction dispute lawyers understand the legal and practical challenges involved and will work with you to protect your rights, enforce your contract, and pursue a resolution that meets your goals.
Contact us at [phone] for a free case consultation today!
