The construction sector is one of the most active but also most dispute-heavy areas of the Georgian economy. Contractor disputes often arise due to disagreements between the client (whether a private individual or developer) and the performer (construction company or individual contractor). The subject of the dispute can vary: violation of deadlines, poor quality work, exceeding the agreed budget, or other failures to meet contract terms. The Civil Code of Georgia regulates the "Contract for Work" (Nardoba), which forms the legal basis for construction relationships, though applying these norms in practice is often complicated by specific technical details. For the client, a dispute with a contractor means a stalled project and financial loss, while for the contractor, it means suspended payments and reputational risk.
Effective legal assistance during disputes with contractors is vital. This does not merely involve filing a lawsuit; it is a complex process involving technical expertise, detailed contract analysis, and negotiation. Often, properly managed claim management allows the dispute to be resolved out of court, saving time and resources. Legal.ge offers access to lawyers specializing in construction law who know how to protect your interests from both the client's and the performer's perspective.
What Does Contractor Disputes Service Cover?
This service covers all stages of a construction dispute, from preventive measures to enforcement:
- Contract Analysis & Breach Identification: Reviewing the Contract for Work terms and identifying specifically which clauses were breached by the contractor (deadlines, quality, materials).
- Organizing Construction Expertise: Engaging independent experts to assess the quality and volume of work performed, which is essential evidence in court.
- Preparation of Formal Claims: Sending a legally sound demand letter (Pre-action letter) to the contractor requesting defect rectification or compensation for damages.
- Negotiation & Mediation: Seeking alternative dispute resolution methods to prevent project stagnation and reach a compromise.
- Contract Termination: Legally processing the unilateral or mutual termination of the contract and conducting final settlements.
- Litigation & Arbitration: Representing interests in court or arbitration to claim damages, penalties, and lost profits.
Common Real-World Scenarios
Contractor disputes often unfold according to the following scenarios:
The first scenario is the "Abandoned Site." The contractor took an advance payment, performed a small part of the work, and then stopped working or disappeared. The client needs to terminate the contract, recover the advance, and legally bring in a new contractor.
The second case is "Poor Quality Materials." The builder used lower quality materials than agreed (e.g., cheap cement or rebar), causing cracks or structural issues. The client demands defect rectification at the contractor's expense or compensation.
The third scenario is "Hidden Costs." The contractor demands more money than the initial estimate, citing rising material costs or unforeseen works. The client refuses to pay because the contract stipulated a fixed price.
The fourth situation is "Non-payment." The contractor performed the work properly, but the client refuses to sign the acceptance act and pay, citing minor defects to avoid payment.
Georgian Legal Framework and Regulations
These types of disputes are regulated by the Civil Code and construction norms:
- Civil Code of Georgia (Contract for Work): Articles 629-656 regulate the contract for work, the contractor's liability for defects, and the client's rights.
- Civil Procedure Code: Defines rules for dispute hearings, burden of proof, and procedures for appointing expertise.
- Construction Code: Establishes technical regulations and safety norms, violation of which forms the basis for contractor liability.
Process and Stages
The process begins with a situation audit. The lawyer studies the contract and factual circumstances. If the work is poor, expertise is appointed. Then an official notice is sent demanding defect rectification within a reasonable time (a requirement of the Civil Code). If the contractor does not respond, a lawsuit is prepared. During court litigation, a request may be made to freeze the contractor's assets to secure the claim. The process ends with a court judgment or settlement.
Why Legal.ge?
Construction disputes are technically complex and require specific knowledge. On Legal.ge, you will find lawyers with experience in disputes ranging from small renovations to large infrastructure projects. We help you avoid losing money due to poor construction and protect your investment.
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