Construction disputes may arise from missed deadlines, unpaid bills, or accidents where workers get hurt. Liability falls on the party who failed to fulfill a legal obligation, yet getting to the bottom of things can be confusing and require experienced guidance.
In this post, the Texas construction defect and injury attorneys at Fee, Smith & Sharp LLP discuss the different types of liabilities involved in construction disputes and how to respond to them.
Common Reasons for Construction Disputes
Construction disputes occur from misunderstandings, failed performance, inadequate communication, and unexpected circumstances. They are commonly triggered by any of the following issues:
- Changes in the scope of work to be performed
- Unanticipated circumstances
- Performance delays
- Design errors
- Poor workmanship
- Defective materials
- Disagreements over contract interpretation
- Payments not made
Parties Who May be Liable When Construction Disputes Arise
When something goes wrong with a construction project, anyone legally associated with it is potentially liable. The investigation starts with what happened and tries to retrace the steps leading up to the dispute. The persons whose actions directly contributed to the disputed situation, as well as others the law holds responsible, may be liable for the damage caused.
Employers
Employers in Texas must provide insurance that pays medical benefits and lost income to injured employees. They must also establish and maintain a safe work environment under Texas law for all those who are working at the site, including contract workers. The duty to keep the premises safe extends beyond workers to include any authorized visitors to the property.
Employers are generally liable for the actions of employees while they are at work. When employees cause a problem, employers can be liable for careless hiring decisions, management and supervisory errors, inadequate training, and non-enforcement of safety rules and regulations.
Contractors
The legal responsibilities of contractors are described in their contracts with property owners, employers, or other contractors. Contractors are usually liable for problems that occur with the work they are hired to perform or if they do not complete the work as agreed. They may also take on a greater or lesser liability exposure by terms within the contract.
Employees
Employees may be liable for construction disputes when their carelessness contributes to the circumstances leading to the dispute. This liability can result from not following safety protocols or using equipment improperly. When employees act within the scope of their employment, liability for careless mistakes is vicariously imposed on the employer.
However, employers are generally not responsible for employee actions that are outside the scope of employment. When employees engage in Illegal activities, run personal errands, or engage in horseplay, they are usually acting outside the scope of employment. This potentially puts them at fault personally for the results of their actions.
Architects/Engineers
Architects and engineers can be liable when design plans and specifications are incorrect or incomplete, causing delays, cost overruns, structural damage, and accidents. Design defects aren’t always obvious, and investigation is often necessary to determine exactly what went wrong and who is responsible.
If design specifications are unclear, the design professionals may be liable when contractors do not perform the work properly. Design professionals are not likely liable if a structural error occurs because of a contractor’s mistake or misinterpretation of plan specifications.
Manufacturers
Manufacturers must pay monetary damages in Texas to those injured by their defective products. Products may have design or manufacturing mistakes, or the marketing material and instructions could be incorrect or insufficient. The manufacturer must warn consumers when there are known dangers involved with using a product.
Manufacturers can also be liable when products do not perform as promised or guaranteed by the manufacturer. In construction disputes, manufacturers may be liable for defects in or malfunctions of power tools, machinery or equipment, and safety gear.
Property Owners
Texas property owners and operators have a legal responsibility to keep the premises reasonably safe for persons who are authorized to be there. The duty requires property owners to warn of or eliminate known hazards. Property owners may delegate their responsibility by contract to others who are in a better position to identify and correct any safety issues.
Resolving Construction Disputes in Texas
Construction contracts typically include provisions that govern how disputes will be resolved. Typically, all parties will begin with the least formal or confrontational methods, while full-blown litigation is reserved as a last resort. Depending on the circumstances and the relationships of the parties, the following sequence of resolution methods may be necessary to resolve disputed issues:
- Negotiation – The parties are able to talk it out without third-party intervention.
- Mediation – A third party helps facilitate a discussion between disputing parties.
- Arbitration – A third party listens to the disputing parties and develops a binding decision that all parties sign.
- Litigation – This more formal approach presents the issues to a judge and jury for resolution.
Arbitration is a less formal and more cost-effective process than litigation, and many construction contracts specify binding arbitration as the chosen means for dispute resolution. Litigation can be lengthy and expensive but affords the parties additional legal options and may provide a more appropriate forum depending on the nature of the disputed issues.
Protect Your Business From Construction Dispute Liability
Construction disputes are fueled by accident liability claims. If scaffolding collapses on a work site and a worker dies after falling several stories, a lot of questions need answering, such as:
- Was the scaffolding defective?
- Was the scaffolding set up properly?
- Who was in charge of making sure safety rules were followed?
- Were there any structural issues that contributed to the accident?
- Were the workers acting within the scope of their employment?
When all the fingers start pointing, business owners must understand their rights and adequately protect their interests with the help of competent and experienced legal advocates. The Fee, Smith & Sharp LLP attorneys have extensive knowledge of Texas construction defect laws and many years of experience successfully representing business clients throughout Dallas, Houston, and Austin.
Contact us today to learn more and discuss your liability concerns in construction contract disputes.
