Travis & De Blase LLP represents contractors, subcontractors, property owners, and developers in construction disputes throughout New York. Below are answers to frequently asked questions about construction litigation.
What is construction litigation?
Construction litigation involves legal disputes arising from construction projects. These disputes can involve payment issues including mechanic’s liens and trust fund claims, breach of contract between owners, general contractors, subcontractors, and suppliers, construction defect claims, delay and disruption claims, bid disputes, insurance coverage disputes related to construction losses, and professional negligence claims against architects and engineers. Construction litigation is a specialized area of law that requires an understanding of both the legal frameworks and the practical realities of the construction industry.
What is a mechanic’s lien and how does it work in New York?
A mechanic’s lien is a security interest in real property that can be filed by contractors, subcontractors, laborers, and material suppliers who have not been paid for work performed or materials furnished in connection with an improvement to the property. Under New York Lien Law, the lien attaches to the property itself, giving the lien claimant leverage to compel payment. The lien must be filed with the county clerk within eight months of the last date work was performed or materials were furnished (four months for single-family dwellings), and a copy must be served on the property owner within 30 days of filing. The lien must be enforced by commencing a foreclosure action within one year of filing, or it will expire.
What are trust fund obligations under New York Lien Law?
Under New York Lien Law Article 3-A, funds received by contractors and subcontractors in connection with a construction project are deemed trust funds that must be used to pay the costs of the project, including payments to subcontractors, suppliers, and laborers. Diverting these trust funds for other purposes, such as paying unrelated business expenses or personal obligations, is a violation of the trust fund statute that can give rise to civil liability and, in some cases, criminal prosecution. Property owners can also be designated as trustees under certain circumstances. Understanding and complying with trust fund obligations is essential for anyone involved in construction in New York.
I am a subcontractor and the general contractor has not paid me. What are my options?
As a subcontractor who has not been paid, you have several potential remedies. You may file a mechanic’s lien against the property where you performed work, which creates a security interest in the property and significant pressure on the owner and general contractor to resolve the payment dispute. You may assert a trust fund claim under Lien Law Article 3-A if the general contractor received funds for the project and failed to pay you. You may pursue a breach of contract claim against the general contractor. And depending on the circumstances, you may have claims against the property owner or other parties on the project. The right strategy depends on the specific facts, including the amount owed, whether the general contractor is solvent, and the status of the project.
I am a property owner and a lien has been filed against my property. What should I do?
If a mechanic’s lien has been filed against your property, you should consult with an attorney promptly to evaluate the validity of the lien and your options for responding. Options include negotiating payment or a settlement with the lien claimant, posting a bond to discharge the lien from the property while the underlying dispute is resolved, moving to discharge the lien on procedural grounds such as late filing or failure to serve notice, and challenging the lien on substantive grounds such as willful exaggeration of the lien amount. A lien on your property can affect your ability to sell, refinance, or obtain additional financing, so addressing it promptly is important.
What is a construction defect claim?
A construction defect claim arises when work performed on a construction project does not meet the standards required by the contract, applicable building codes, or industry standards. Defects can include structural issues such as foundation problems or load-bearing failures, water intrusion and moisture damage, electrical, plumbing, or HVAC system deficiencies, use of substandard or defective materials, and failure to comply with building codes or approved plans. Construction defect claims can be asserted against the general contractor, the subcontractor who performed the defective work, the architect or engineer who designed or approved the defective work, and in some cases the material supplier. These claims often require expert testimony to establish the nature and cause of the defect and the cost of remediation.
What is a delay claim in construction litigation?
Delay claims arise when a construction project is not completed on time and one party seeks to hold another responsible for the resulting costs and damages. Delays can be caused by the owner (such as changes in scope, failure to provide access, or delayed payments), the contractor (such as insufficient labor, poor scheduling, or defective work requiring correction), or external factors (such as weather, labor shortages, or supply chain disruptions). The allocation of delay responsibility and the resulting damages is often one of the most complex and contested issues in construction litigation, frequently requiring detailed scheduling analysis and expert testimony.
Do I need a construction-specific attorney, or can any litigator handle my case?
Construction litigation involves specialized statutory frameworks (such as the New York Lien Law), industry-specific contract forms and practices, technical construction issues, and complex scheduling and damages analyses. An attorney with experience in construction law will be more effective at navigating these specialized issues and achieving favorable results. At Travis & De Blase LLP, our construction litigation practice is built on deep familiarity with the construction industry and the legal frameworks that govern it, enabling us to provide strategic, informed representation for all parties involved in construction disputes.
How can Travis & De Blase LLP help with my construction dispute?
We represent all parties in construction disputes, including owners, developers, general contractors, subcontractors, and material suppliers. Whether your matter involves a mechanic’s lien, a trust fund claim, a construction defect, a payment dispute, or any other construction-related issue, we provide aggressive, knowledgeable representation focused on achieving the best practical result. Contact us at (212) 248-2120 or info@travisdeblase.com. Our offices are at 40 Wall Street, Suite 2508, New York, NY 10005.
Learn More
For a comprehensive overview of our practice, visit our Construction Litigation page. You may also find our guide on Mechanic’s Liens in New York helpful.