Newport Beach Construction Contract Disputes: What to Do When a Developer or Owner Stops Paying?

When a developer or owner stops paying for a project, it can be incredibly frustrating. As a worker, you deserve to be paid for the work you’ve done. While Newport Beach construction contract disputes are difficult to deal with, there are steps you can take to get the compensation you deserve.

Understanding these steps is essential to protecting yourself and your rights. You might also want to work with an attorney from Engels-Janzen. We’ve worked with clients across Orange County and beyond to settle disputes and get the support they need.

Hire a Construction Contract Dispute Lawyer for Assistance

Contract disputes often involve numerous documents and debates over agreements and payment terms. When facing these, having an experienced lawyer makes it easier for you to know what you need and how to make your case stronger.

Construction disputes have been getting more valuable, with the average value increasing to 60.1 million in 2024. While the average length dropped to 12.5 months, that’s still a long time to be waiting to get paid. And in that time, you may be dealing with court appearances, negotiations, or other difficult tasks.

Chris Engels has personal experience as a construction worker, and Sean Janzen has worked with these types of contract disputes before. Together, we know the importance of getting paid quickly and settling these disputes without lengthy litigation when possible. Whether you’re working in Newport Coast or somewhere else along our beautiful coastline, we can provide the representation you need.

Construction Workers’ Rights in Contract Disputes

To settle your dispute, you should know your rights and the protection and compensation you may be entitled to. As one of the 895,500 construction employees in California, you know how difficult your job already is without further complications.

With a proper contract, you always have the right to appropriate payment for your labor. You also have the right to potential negotiations or legal mediation, and other forms of resolving your dispute. Sometimes, the difficult thing is defining what compensation is appropriate or what path of remedy to take.

If there’s been a breach of contract or the developer or owner has stopped payment illegally, you have the right to take further legal action. Often, courts encourage mediation, a process in which an impartial third party helps negotiate a solution to the dispute. Sometimes that isn’t possible, and further legal challenges or litigation may be necessary.

In all of these situations, you’re entitled to get legal assistance from an attorney who can help strengthen your case. You don’t have to tackle frustrating contract disputes on your own.

Steps to Take When Payments Stop

First, to protect yourself against possible future issues, you should always file a preliminary notice of work and intent to be paid for said work. In California, this notice must be filed within 20 days of the start of the work. If you file it later, you may still be able to take action, but work done more than 20 days before the filing may not be covered.

If you have filed that preliminary notice and payments have been stopped against your contract, you are able to present your intent to stop work until payment is made. You might also be able to place a mechanics’ lien on the property. If the owner or developer still refuses to pay, the property may be foreclosed and its sale used in place of payment.

Whatever steps you take, maintain consistent documentation. Keep track of hours worked, all contracts and agreements, invoices, and any other important documents. Keep copies of any notices you file with the state, the Department of Industrial Relations (DIR), or the entity that hired you. Of course, you can contact legal aid to further ensure compliance and the strength of your case.

FAQs

Which Is the Most Common Remedy for Breach of Construction Contracts?

Many breach of construction contract cases result in damages, which are typically money paid from one party to another. This can cover lost wages, the cost of materials, the cost of resolving issues stemming from the breach, and more. While this is a frequently used remedy, it is not the only one, and results may vary by case.

Can Owners Incur Penalties for Non-Payment?

Yes, depending on the case, owners can incur penalties for payment not given to workers. Often, these penalties are based on a percentage of the amount owed, increasing what they have to pay. This is not always the case, and in some cases, they may not be subject to any penalties at all.

How Hard Is it to Win a Breach of Contract Case?

Each breach of contract case is unique, and its difficulty can vary. Generally, the more thorough your documentation, the easier it is to handle your case. Improper documentation, lack of cooperation, and unclear contracts can all make cases more difficult. To find out how to approach your case, hire a construction contract dispute lawyer who knows the relevant laws.

Do I Need a Lawyer for a Construction Contract Dispute Case?

Lawyers are not required to resolve construction contract dispute cases. However, these cases are complex, and experienced legal aid can make all the difference in the outcome. An attorney can help you gather evidence, draft communications and contracts, know what documents you need, represent you in court, and negotiate with the other party.

Get Your Compensation With Engels-Janzen

With the number of legal requirements and steps involved in contract disputes, facing them alone can be daunting. When you stop getting paid, you also take on more stress and difficulty in your life. For those reasons and more, working with an experienced attorney can make your case easier to handle.

At Engels-Janzen, we know the difficulty these cases bring to clients. We also understand the importance of getting them resolved quickly, so you can get back to your normal work and life. Contact us today to schedule a consultation and tell us more about your case. Together, we can figure out the path to getting you compensation for your work.