Construction Law in Kentucky:
In 2007, the KY legislature enacted the KY Fairness in Construction Act to help increase transparency in construction law and contracts. This Act impacts almost all construction in Kentucky. This includes any:
- Improving; or
of any structures or buildings, or other improvements of any kind to any real property. The Act does not include residential project, maintenance, or industrial processing work.
Even with the protections offered by the KY Fairness in Construction Act, a simple construction project can involve legal issues involving multiple parties and numerous responsibilities and risks laid out either verbally or in a complicated contract. And the bigger the project, the more complex a construction project becomes. Some of the issues that may arise include:
A contractor dispute can involve owners, developers, contractors and subcontractors. Many contractor disputes revolve around payment for contracted services, disagreements over payment for extra work, contested back charges, work stoppages and delays, and breach or termination of contracts.
Mechanic’s (aka “Construction”) Liens
Every state permits a person who supplies labor or materials for a construction project to claim a lien against the improved property. Under KRS 376.010, a mechanic’s lien is available to any person who provides labor or furnishes materials for the improvement of real property by contract with, or by written consent of the property owner. The lien is superior to any mortgage or encumbrance created subsequent to the beginning of the labor or the furnishing of materials and the lien relates back and takes effect from the time of commencement of the labor or furnishing of materials.
The process of filing and enforcing a mechanics lien can be difficult to navigate without legal help.
Architectural and Engineering Conflicts
Some construction project issues that arise may include architectural or engineering errors or omissions, for example an engineer’s project proposal to an architect may be signed by the architect, but later conflicts with the terms of construction executed by the parties involved.
Arbitration, Mediation and Litigation
Depending on the contract, the construction dispute may require that issues between the parties must be resolved through arbitration, mediation or litigation. It can be very difficult to navigate contract disputes in arbitration, mediation, or litigation without legal help.
Whether it is a contractor, developer, property owner, architects, or engineer, it is vital that a construction contract be drafted carefully so that needs and requirements of the contracting party are met and that their interests are protected throughout the construction project and beyond.
While numerous issues can arise in a construction project, each party can help avoid issues by taking the proper legal steps. If you are a:
- Property owner;
- Developer; and
- Material Supplier;
Coleman, Roles, and Associates, PLLC can help you avoid costly pitfalls and delays while protecting your rights. Feel free to email or call us at (502)-771-0588 for more information or to request a free consultation.