Construction Attorney in NY : Construction Law Expertise & Dispute Resolution

Payment disputes are the leading cause of construction litigation in New York. A contractor completes work that the owner claims is defective or incomplete; the owner withholds payment; the contractor cannot pay suppliers and subcontractors; liens pile up; and the project stalls. The statute governing construction liens in New York, Lien Law Section 34, gives contractors and subcontractors powerful rights to file a lien on the property if they are not paid. However, the lien must be filed within 90 days of last furnishing labor or materials. Miss that deadline, and your lien right vanishes.

Change orders are the escape hatch. If the scope expands or conditions change, a written change order signed by the owner protects you by documenting the extra work and adjusting the price and schedule. Courts enforce change orders strictly; oral promises to pay for extra work are notoriously difficult to prove. Document every change, photograph conditions, and get written authorization before proceeding.

New York Lien Law is unique and powerful but unforgiving. A subcontractor or material supplier who is not paid can file a mechanic's lien against the property, encumbering the title and blocking the owner from selling or refinancing until the lien is resolved. The 90-day deadline is absolute; there is no grace period. The lien must describe the labor and materials furnished, the dates of performance, and the amount owed. In New York courts, including the Supreme Court in each county, lien disputes are heard as expedited proceedings. The owner can file a lien discharge action to challenge the lien's validity, forcing the claimant to prove the debt within weeks. This procedural urgency means you must have clear records from day one.

When an owner discovers defects, the first question is whether the contractor has a duty to repair or whether the defect is minor and cosmetic. Most construction contracts include a warranty period, typically one year. During that period, the contractor must correct defects caused by poor workmanship or material failure. The owner must notify the contractor in writing and give the contractor a reasonable opportunity to cure. If the contractor refuses or fails to cure, the owner may hire someone else to fix the problem and seek reimbursement from the contractor.

Disputes arise over what constitutes a defect. Is the tile slightly uneven? Is the paint color slightly off? Courts apply an industry standard: would a reasonable contractor in New York have performed the work this way? If yes, the defect claim fails. If no, the contractor owes repair or damages.

Many construction contracts include a liquidated damages clause: if the contractor fails to finish by the deadline, the contractor pays the owner a fixed amount per day of delay (e.g., $500 per day). Courts enforce liquidated damages only if the amount is a reasonable forecast of the owner's actual loss, not a penalty. In New York, courts scrutinize these clauses carefully. If the daily rate is wildly inflated compared to the owner's documented costs, a court may refuse to enforce it. Conversely, if the owner has suffered real daily costs (financing costs, lost rent, delay in resale), the clause is likely enforceable.

The party with the best records almost always wins. Photographs, daily logs, emails, change orders, and invoices are your evidence. If you are in dispute, preserve all documents immediately and notify your attorney. Many construction disputes can be resolved through mediation, a process in which a neutral third party helps the parties negotiate a settlement. Mediation is often faster and cheaper than arbitration or trial. Courts in New York frequently order mediation before trial.

Arbitration clauses are standard in construction contracts. The arbitrator is chosen by the parties (often jointly) and applies the contract language and New York law. Unlike a judge, an arbitrator does not issue a written opinion explaining the reasoning; the decision is final and nearly impossible to appeal. In New York courts, construction disputes are handled by judges who specialize in commercial cases. These judges understand construction industry practice and are more likely to enforce industry-standard contract language. The Supreme Court in New York County (Manhattan) and Kings County (Brooklyn) have heavy construction dockets and experienced judges. Litigation in these courts is transparent, appealable, and creates precedent.

New York imposes strict notice requirements to preserve lien rights. A subcontractor or supplier must send a Notice of Non-Payment to the owner within 90 days of first furnishing labor or materials. This notice must include your name, the general contractor's name, the property address, and a description of the work or materials. Failure to send this notice does not extinguish your lien rights, but it weakens your position and may limit your recovery against the owner's funds. Sending the notice is cheap insurance; not sending it is a common and costly mistake.

Once you file the lien, the owner has 90 days to file a lien discharge action in court. You then have a short time to prove your claim. The court will examine your contract, invoices, and proof of non-payment. If you win, the lien is enforced and the owner cannot sell the property without paying you or posting a bond.

Construction disputes demand early legal involvement. The moment you suspect a payment problem, a schedule conflict, or a defect claim, consult a construction attorney in New York. The cost of early advice is far less than the cost of litigation or lien disputes. Consider whether your contract clearly defines the scope, payment schedule, change order procedures, and dispute resolution method. If not, negotiate these terms before work begins. If you are already in dispute, gather your records, understand your lien rights and deadlines, and evaluate whether arbitration, mediation, or litigation is your best path forward. The construction industry moves fast; so should your legal strategy.