As construction projects increase in their scale and complexity there is every opportunity for misunderstandings to arise, especially where there terms and conditions of contracts are not fully observed.
Understanding and Enforcing Alabama’s Lien Laws
This can, and often does, lead to situations in which parties come into dispute. In instances where a disagreement with regards to defaults in payment of services, labor or materials occurs, a construction lien on the property may be brought.
Alabama’s lien statue expresses strict interpreted provisions that must be adhered to before a claim can be filed and proper construction claims preparation in Alabama can take place.
If a party follows all liens law procedures, payment is guaranteed as the property owner is legally compelled to pay the outstanding bill or invoice.
If any step is missed or if the statute fails to be observed, the lien may become invalid. This is a critical factor in regards to organizing an effective construction claims preparation process.
The Role of Diligence in Construction Claims
It is common for large construction projects to be closely monitored and for potential claims to be heavily scrutinized. Ultimately, the key to effective construction claims preparation in Alabama is diligence.
The facts of the case must be defined and subsequently proven beyond all doubt and damages must be able to be substantiated and shown to create a causal link. These may relate to breaches of contract which should return the awarded party to their previous position.
When filing a claim for recompense parties must remain aware of the fact that damages from poor construction decisions may not constitute a cause for litigation under Alabama state law, and the claimant must then prove that the decision maker demonstrated a wilful act of bad faith.