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Austin Business Litigation Blog

Resolving a construction dispute as a homeowner

Maybe you're in the process of building your dream home from the ground up. Or maybe you hired a contractor to take on a large home improvement project, such as adding a second story addition.

You hope everything goes as planned, but in the back of your mind you realize that many things could go wrong along the way.

How does scope creep begin? Learn more

Most contractors are familiar with the term scope creep. This insidious problem crops up frequently on new builds and renovations equally. It eradicates profits and can generate litigation if not resolved.

So, if we understand what it is, why does scope creep continue to be the bane of contractors' existence? Let's examine a few ways in which scope creep can begin on a construction project.

Understand and avoid a mechanic's lien with this information

You've been living in a property that you purchased for some time, so you decided that you'd like to sell it. To your surprise, a buyer backed out because a mechanic's lien is in place.

This lien is a kind of security interest that can be placed on your home or property when a subcontractor, contractor or supplier has not been paid. Even if there is a general contractor who was paid in full and supposed to pay these individuals, they can still place a lien on your property if they don't receive payment. In the end, it's the homeowner who could end up being forced to pay double to cover the expenses that were not paid to the past contractors.

Mediation is a smart move when you're dealing with a dispute

Of all the things that you should want to avoid, going to trial is a top concern. Trials are unpredictable, and it can be hard for you to be guaranteed the outcome you want to see.

Fortunately, there are alternatives to going to trial. One such alternative is mediation. Mediation is about more than just "winning." It is about finding a solution that both parties agree with. Whether you're struggling with a contract dispute, construction disputes or arguments involving your homeowner's association, mediation can help.

3 things to know about construction defects

Undertaking a construction project, big or small, can come with some unique challenges. Not only do you have to find the right property to build on, but you also have to obtain permits, ensure the area can receive utility services, check the zoning laws and hire the right contractor. Unfortunately, even a seasoned contractor with a solid reputation can still make mistakes. In most cases, these mistakes may require minor repairs. However, in some situations, you could find yourself dealing with major construction defects.

Before you begin your construction project, it is important to understand the basics of construction defects. Here are a few things to know about types of defects, contractor duties and prevention.

Should companies fight it out in the courtroom?

Every day, there are new headlines about different business suing each other over copyright, employment practices or other complex company issues. With the bombardment of headlines, it seems like duking it out in court is the only way a company can settle its disputes.

However, most business owners prefer to settle their conflicts away from the courtroom due to costly lawyer fees and lengthy court procedures. For most entrepreneurs, the disadvantages of going to court outweigh the possibility of winning the case.

Fiduciary duties: What every business director should know

Fiduciary duties are an intimidating concept for many in the business world — and understandably so. Directors and officers can be held personally liable for violating these duties. Knowing what they are — and how to comply with them — is thus crucial to fulfilling your role in a business.

 

Ways to protect yourself when buying or selling a business

Buying or selling a business is always a big decision. Not only is there the potential for lots of money to change hands, it represents a new direction in your own career path. Because so much is at stake, it means you want to be as thorough as possible.

Making a mistake on a sale or purchase could result in regret down the line, with opportunities to address these problems having long passed you by. Here are a few things to keep in mind if you’re thinking about buying or selling a business.

Texans can sue Texas with Texas' approval

You can't fight city hall, they say. Some Texans may be surprised that this saying has its roots in British common law from well before the USA existed. The idea is "sovereign immunity" and is simply that governments are immune from lawsuits brought against them using their own laws.

Texas, like the federal and other state governments, also enjoys this immunity. But like those other governments, Texas has chosen to declare itself partly suable by waiving its immunity under certain circumstances.

What are the main kinds of construction defects?

When it comes to construction projects, there are plenty of parties involved. There is the property owner, the general contractor, sub-contractors and sometimes an architect or designer. During a project, all these parties need to communicate with one another to get the job done.

Sometimes, things don’t go as planned.

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