Question

Case Study: Liens 2 You are the owner of Big Hammer Construction and it has been a tough month. Last week you got a call from an old client who you distinctly remember as "high maintenance" and having tons of change orders. Apparently, the indoor water park you built for her eleven years ago was recently shut down due to a mold infestation in the walls. She wants you to come back and replace all of the drywall in the entire community center On top of this problem, your latest client, the City of Santa Fe, is refusing to fully pay you for the gold you purchased to pave the City's streets with as part its beautification project. You have already paved the street with the gold and want payment for your services and material costs but the City is refusing to pay in full, claiming you purchased 18 karat gold when the project could have been completed with 12 karat gold Unsure about how to handle either situation, you grab your trusty Construction Law Manual off the shelf for help. Do you still owe an obligation eleven years later to complete repairs based on the latent mold that recently appeared at the Community Center and Water Park? And as for the City of Santa Fe, what action can you take to ensure full payment. You really want to sue them but you are worried. Is the New Mexico Public Works Mediation Act is going to stand in your way?

Answer 1

Answer

1)The contractors are bind by the contract terms and conditions. If the contract specifically mentions the rectification period or the period within which the contractor would be liable for any future repairs he would be bound by the same. In the present context the customer comes back to the contractor after a period of 11 years. Hence a reference should be made to the contract to check the rectification period. If the rectification period is 11 years then Big Hammer Construction is liable to do the repairs. If the rectification period is less than 11 years then Big Hammer construction is not liable for the repairs.

2)Mexico Public Works Mediation Act was introduced to settle many contractual disputes off the court. It gained lot of popularity especially in resolving contractual disputes. If contract terms explicitly mention about mediation terms in case of dispute the issue must be first settled through mediation. Even through the mediation if either of the parties are not happy with the decision or outcome it will not deny their right of the parties for taking the issue to the court. Hence Big owner construction could always sue city of santé fe if not satisfied through the mediation process.