How can I resolve a dispute with a subcontractor?
Asked in Minneapolis, MN on February 4, 2025 Last answered on February 4, 2025A subcontractor we hired is not meeting the terms of our agreement and their work is substandard. They are also demanding full payment. What are my legal options to resolve this issue?
1 answer
Resolving a dispute with a subcontractor in Minnesota involves several steps and options. Here’s a general guide to help you navigate this situation:
- Review the Contract: Look for specific terms related to performance standards, payment schedules, deadlines for completion and dispute resolution procedures. This document is crucial in outlining the obligations of both parties.
- Communicate: Open a line of communication with the subcontractor. Clearly express your concerns about the substandard work and reference the specific terms of the contract not being met. A direct conversation could lead to a mutual agreement without further escalation.
- Document Everything: Keep detailed records of all communications, work performed, and issues encountered. Take photographs of the substandard work and maintain a log of all interactions. This documentation will be valuable if the dispute escalates.
- Mediation: If direct communication doesn’t resolve the issue, consider mediation. Mediation involves a neutral third party who can help facilitate a mutually acceptable resolution. It’s a less formal and often quicker alternative to litigation.
- Arbitration or Litigation: If mediation fails, arbitration or litigation are the next step. In arbitration, a neutral arbitrator hears both sides of the dispute and makes a binding decision. Absent a provision in your contract mandating arbitration of disputes, both parties would have to agree to arbitrate. Alternatively, you can file a breach of contract lawsuit. In both forums, you can seek remedies such as damages for the cost of repairs, the difference in value between the work performed and the work contracted for, and possibly attorney’s fees depending on the contract. Litigation can be time-consuming and costly, so consideration for the amount at stake is key.
Consult an Attorney: Given the complexities of construction law, consulting with an attorney specializing in such disputes can provide valuable guidance. They can help you understand your rights and gameplan a course of action based on your specific situation. Generally speaking, the sooner you get in contact with an attorney, the better.
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