Construction law: Company involved in dispute over payments

In large scale projects, construction companies in New York and elsewhere may choose to enlist the services of a contractor. These arrangements generally include a contract stating the terms of the arrangement and how to proceed should any disputes arise. One common area in construction law where such disputes could occur pertains to issues with payments, and such topics can be hotly contested.

According to reports, a construction company in another state is currently involved in such a dispute. A contractor who was hired by the company to work on a bridge replacement project claims it hasn’t received payment for work performed. A county commissioner in the area says he has received quite a few complaints related to the issue, and states that numerous individuals who work for the contractor have allegedly gone months without being paid.

According to the coordinator for the project, all payments to contractors are up-to-date, and none of the other companies working on the project have filed a complaint. She states that the dispute is in relation to work claims from the contractor that aren’t included in the signed contract. The two parties have entered the dispute resolution process, which was reportedly included in the terms of the contract, but no further information was provided.

Disputes regarding payments in construction projects can be highly contestable matters. Companies who are subjected to such allegations could find it beneficial to speak with a construction law attorney early on for guidance. An attorney can evaluate the dispute, as well as the project contract, and provide a client in New York with guidance on the best course of action with which to proceed.

Source: caller.com, “Company in dispute with replacement Harbor Bridge contractor over work“, Tim Acosta, Feb. 8, 2018