Housing and Construction Defects
If you discover a defect that affects the value of your property, you may have legal remedies. Typically, this will mean taking your contractor or builder to civil court to sue for monetary damages. You could potentially recover the cost of repairs, bringing it up to code, restoring it to the value promised, or medical costs for personal injuries.
Each state has its own rules for civil court claims and construction defect lawsuits. If you are a homeowner and want to know about construction defect claims, talk to a local construction law attorney.
What Is a Construction Defect?
Construction defects are flaws in the design, structure, or quality of a new home or condominium. Construction defects can also involve other structures, such as a garage, shed, or commercial property. Construction defects can include:
- Poor craftsmanship
- Misrepresentation
- Faulty designs and architecture
- Building code violations
- Substandard workmanship
- Incorrect building materials
- Unstable foundations
- Malfunctioning plumbing, wiring, or HVAC systems
- General instability
These and other issues can greatly reduce the value of your property, pose safety risks, and violate local laws and ordinances. Based on a breach of contract, you may have overpaid for the materials provided compared to those in the construction contract.
Recognizing and Preventing Construction Defects
Unfortunately, the average property owner often doesn’t have the knowledge or experience to recognize all latent defects on their own. Knowing what to look for before, during, and after a construction project is important for you when taking legal action.
You should have a detailed, legally-sufficient contract. This should outline the work project, the materials used, and payment agreements. Keep a copy of this and any other contracts and warranties. This information can be helpful in construction defect litigation.
The homebuilder team should have certain permits, licenses, surety bond certificates (insurance), and other documentation proving they’re qualified. This includes the general contractors and subcontractors. You can ask to see the necessary documentation. Be wary of a construction crew that can’t or won’t produce them for you.
During the construction process, look for signs of possible defects and property damage. These include:
- Moisture and mold
- Water intrusion
- Frequent and substantial cracks in walls and foundation
- Improper sealing around doors and windows
- Low points that could lead to flooding
- Water stains
- Uneven floors
- Electrical switches that don’t work
One of the best things you can do to identify construction defects is to hire a trusted and independent home inspector. However, even seasoned inspectors miss something on their first pass-through. You can also get a second or third opinion to help you document a breach of warranty.
When choosing inspectors, verify their credentials, check their reviews, and ensure they are bonded and insured. Your real estate agent or construction company may recommend an inspector to you. However, hiring someone with no connection to your project may help you get a more unbiased report.
Speak to the Contractor’s Insurance Company
Once you’ve identified substantial defects that affect the value and safety of your property, you can work toward remedies. In some cases, contacting the company that insured or bonded your construction team can lead to a quick resolution.
You’ll need to do some research. Insurance companies want to save money. Make sure you have evidence of the types of construction defects and what those damages are worth. Negotiate if the insurance company gives you an estimate that is too low. A construction defect attorney can deal with the insurance company to advocate for full compensation.
Construction Defect Arbitration
Arbitration may be an option or a requirement for mediating a construction dispute. Appointed arbitrators will hear both sides of the legal issue and review the evidence. The process is like a private trial. The arbitrators will make the decisions on which side is right and what the remedies will be. Arbitration may be legally binding or non-binding, in which case both parties will need to agree to the terms. Many arbitrators are lawyers or former judges and must have substantial knowledge of legal causes of action.
Construction Defect Litigation
If you cannot reach a settlement with arbitration or negotiations, you may consider suing the contractor and taking them to civil court. Every state has a statute of limitations — the deadline when you’ll need to file your lawsuit. These can range from two years or less to 10 years or more from the date you discovered the defects. Missing the deadline could prevent your case from ever going to court.
If the construction defects involved several building projects with other homeowners, you may be able to file a class-action case that brings together multiple related claims.
Getting Legal Help
Construction defects can result in complicated legal proceedings. You’ll need to research the issues of your case and the relevant state laws. If you want to handle the case yourself, you’ll have to review contracts and insurance policies and potentially navigate the arbitration or court processes. Working with your own lawyer could help you understand your rights and options more clearly and help you build a stronger case. Talk to an experienced construction defect lawyer for legal advice about what you can do if your home has defective construction problems.