|
Last reviewed
12/17/07
Your Options for Resolving Disputes with Contractors
EASIEST
NO COST
|
Kitchen table conference or phone call between you, the homeowner, and contractor. Prepare by looking at your contract. Find any paper records that are important.
Bring to the table family members and others. Pick
people who have been involved in talking with the contractors. Write
down notes in advance so you won’t forget to discuss something
important. Listen carefully if the contractor explains something. Even
though you are not an expert, you can offer suggestions. You can also
offer ideas that other people suggest. If something has made you angry,
have this discussion after you have cooled off. Name-calling, tears or
other expressions of emotion make others uncomfortable. If others are
uncomfortable, positive results and solutions are less likely. |
EASY
LOWEST COST
|
Mediation. A neutral, third person helps the
parties to
- discuss the situation,
- find the facts
- makes sure the parties are really hearing each other,
- find alternatives to resolve the dispute. In mediation, the parties decide how to resolve the dispute. A mediator can be any neutral person or a trained
professional. A neutral person is anyone not connected to either of the parties. Another option is to try a community
mediation
center. These centers offer a neutral outsider to help resolve the dispute. If you do not reach an agreement in mediation, either side can still go to court.
Time: Avg., 1-3 hours within one week of dispute. However, several sessions may be required.
Cost: Avg. $125-300
Note: Mediation
usually works best when the disagreement is still fresh. |
INFORMAL
SOME COSTS
|
Arbitration. During an arbitration, a neutral person:
- hears both sides,
- encourages communication
- gathers the facts of the case
- then makes a decision.
In Maryland, one option is
arbitration. Arbitration is a process where the
parties who have the dispute agree that a neutral third party can decide the outcome.
The arbitration may be "binding". “Binding” means that the parties also agree that the decision will be final and will not be appealed to a court.
This must be agreed upon before the arbitration starts.
Time: 2-10 hours, may take several weeks or more to arrange if there are few arbitrators in your area.
Cost: Avg., $300+ (If you live in an area that has very few arbitrators, then you may have to pay the travel expenses for an arbitrator to come to your area.)
Note: The
American Arbitration Association provides more in depth information
about arbitration on their website. |
|
|
Filing in Small Claims Court.
If a claim is $5,000 or under, you may want to represent yourself and file in small claims court. Prepare by reading the contract. Be ready to point out where the contractor failed. Bring a copy
of the signed contract for the judge. Bring any witnesses or papers that prove your point. If pictures would help to describe the problem, bring them. Take notes on the problem and be ready to explain carefully (1) what you think is wrong, (2) why the contractor is at fault and (3) how it can be fixed.
Cost: Filing fee is $10 and service of process fees average about $35 per person to be "served."
Time: Depending on the county, the small claims process on average can take between two to six months. Sometimes it takes longer. |
|
|
Hire a
business lawyer for negotiation and/or to take the case to court. Parties hire attorneys to negotiate for them. Direct communication between parties difficult or prohibited. End result of legal posturing is a judge’s decision.
Time: May take months or years for formal fact-finding, trial and decision.
Cost: Avg. $500-3,000 |
| What does the word “parties” mean?
The word “parties” refer to the people having the dispute or disagreement. In this case, it would be you and the contractor. It might also include a spouse or maybe an outside supplier. You want to make sure that you include the people who made the mistake and are responsible for correcting it.
|
|
|
| Source: Suzanne
L. Hood, attorney at law
and mediator, Easton, MD with editing and added material by MLAN. |
Last date legal review 11/05/03
(MLAN/SH) |
|
