Construction Disputes

Construction and contractor disputes in Tennessee often stem from delays, defective workmanship, cost overruns, or incomplete projects, resulting in significant repair expenses for homeowners—typically ranging from several thousand to tens of thousands of dollars, depending on the scope. These claims are grounded in breach of contract principles (T.C.A. § 47-50-109), implied warranties of habitability and workmanship (T.C.A. § 66-36-101 et seq.), and the Tennessee Consumer Protection Act (TCPA, T.C.A. § 47-18-101 et seq.) for deceptive trade practices. To prevail, plaintiffs must demonstrate the contractor's failure to perform as agreed. The statute of limitations is four years for written contracts and three years for oral ones (T.C.A. § 28-3-109). Timely action is crucial to prevent mechanic's liens from encumbering the property (T.C.A. § 66-21-101 et seq.).
 

Immediate Steps After a Dispute Arises

1. Stop Unsafe Work: If conditions pose immediate risks (e.g., electrical or structural hazards), cease activities and notify the contractor in writing via certified mail. This preserves your right to withhold payment under T.C.A. § 66-11-144.

2. Document the Issues: Photograph defects, retain all communications (e.g., emails, texts), track project timelines and delays, and keep invoices or change orders. Engage an independent inspector for an objective assessment.

3. Issue Formal Notice: Deliver a demand letter specifying breaches and providing a reasonable cure period (e.g., 30 days). Avoid informal agreements that might affect your claims.

4. Safeguard Financial Interests: Examine the contract's dispute resolution provisions; suspend payments as appropriate and consult an attorney before addressing potential liens. File a notice of non-payment if a fraudulent lien is recorded.
    

Building and Pursuing a Claim

At The Evans Law Firm, our attorneys review contracts and evidence to identify violations and pursue resolution:

• Conduct a Contract Review: Analyze for ambiguities, invalid provisions, or TCPA violations (e.g., misleading bids). Proceed to arbitration if required by the contract or to circuit court for a jury trial.

• Obtain Expert Evaluations: Hire engineers or architects to document defects and code violations (e.g., under T.C.A. § 68-120-101), providing reports on causation and repair costs, which can exceed $100,000 for major structural issues.

• Calculate Damages: Document direct expenses (e.g., repairs, delay-related losses), consequential damages (e.g., lost use of the property), and TCPA remedies, including treble damages up to $60,000 for willful violations. Use records to refute defenses like unauthorized changes.

• Address Liens and Securities: Contest improper mechanic's liens through bond claims (T.C.A. § 66-21-404). For public or bonded projects, enforce performance bonds to secure completion or payment.

• Resolve Through Negotiation or Litigation: Pursue mediation, which resolves over 70% of cases. If needed, prepare for circuit court with evidence presentations (e.g., timelines of defects) and seek attorney fees under prevailing-party provisions.
   

If you're dealing with a construction or contractor dispute, contact The Evans Law Firm for a free contract review.