An owner's or association's claim against a builder, developer, contractor or design professional for defects in how a home or building was designed or built.
Looking for a lawyer rather than a definition? Skip to the state-by-state list of Construction Defects law firms.
A construction defect is a flaw in the design, materials or workmanship of a building that causes damage or makes it fall short of what was promised or what the building code required: water intrusion through roofs, windows and stucco, foundation cracking and settlement, failing plumbing or electrical systems, mold from trapped moisture, and structural elements that do not meet code. The claims available depend on who is suing and what was promised. A buyer of a new home usually has express warranties in the purchase contract and, in most states, an implied warranty that the home was built in a workmanlike manner and is fit to live in (see warranty of habitability). Owners can also sue for breach of contract, for negligence, and in some states for violation of consumer protection statutes; architects and engineers can be liable for negligent design.
Several rules shape these cases. The economic loss rule in many states bars a negligence claim for a defect that has damaged only the building itself, leaving the owner to contract and warranty claims, though states differ sharply on this. Construction claims face both an ordinary limitation period, which generally runs from discovery of the defect, and a statute of repose that runs from substantial completion of the project and cuts off claims after a fixed number of years whether or not the defect was discoverable. Many states also have right-to-repair or notice-and-opportunity-to-cure laws that require an owner to give the builder written notice and a chance to inspect and fix before filing suit; skipping the notice can get a case dismissed or stayed. In a condominium or planned community the association usually has standing to sue over defects in the common elements on behalf of all owners.
The money in a construction case usually comes from the contractors' commercial general liability insurance, and whether a defect is a covered "occurrence" has been litigated state by state. Subcontractors who did the defective work are typically brought in by the general contractor, and a contractor who has not been paid may respond with a mechanics lien. Expert evidence is essential: a building envelope consultant or engineer to identify each defect and its cause, and a cost estimator for the repair scope, because damages are generally the reasonable cost of repair or, where repair is unreasonable, the loss in value.
Document the defects with dated photographs and keep every contract, warranty, change order and communication with the builder. Before you send a demand or hire a contractor to tear anything out, talk to a construction lawyer, because many states require a formal pre-suit notice and because repairing the evidence before the builder and its insurer have inspected it can hurt the claim. Ask about the statute of repose for your project right away. Construction defect lawyers may work hourly, on a contingency fee for large association cases, or a mix; an association should check its governing documents and state law on the vote needed to sue.
Worried about the cost? A lawyer can be hired for one part of a case only (limited-scope representation), may be paid from what a claim recovers (contingency fee), or may be free through a pro bono program or legal aid; a court can also waive its own filing fees.
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