Defects and Deficiencies in New Construction

Construction defects and deficiencies are discovered in many new homes. Builders need to be competitive with bids to get contracts. This can result in cutting corners and hiring unskilled subcontractors that do shoddy and poor quality work resulting in all sorts of problems such as leaks, mold, code violations, peeling paint, substandard foundations, substandard workmanship and health and safety violations. Municipalities are short staffed and underfunded and do not have enough inspectors to properly inspect homes so that a lot of substandard work does not get noticed. These factors contribute to a number of new homes that are built with serious defects and deficiencies.

Types of Construction Defects

A construction defect is considered a deficiency in the architectural design, planning and supervision or construction of a new home or building. The work must be conducted in a reasonable workmanlike manner. Construction defects are classified into four categories:

• Design deficiencies
• Poor Workmanship
• Material deficiencies
• Subsurface problems

Design Deficiencies

Design deficiencies relate to architectural or engineering designs that do not meet code specifications and can create such problems including drainage problems, leaks or structural and foundation problems.

Poor Workmanship

Poor quality workmanship can cause many defects such as mold, cracks in foundations or walls, electrical, plumbing and mechanical problems and even infestation by wood destroying organisms (termites).

Material Deficiencies

Using inferior building materials can cause major problems such as inferior drywall including Chinese drywall, deteriorating flashings, window leaks and roofing problems. This can create substantial repair costs to the homeowner if the builder does not stand by the work.

Subsurface Deficiencies

Subsurface deficiencies can cause drainage problems and geology problems as a result of improper settling. Homes can shift and move off their foundations during floods and mud slides. Homes that are built on hillsides need to have the proper type of foundation and geology to support the structures. You should always obtain a geology report on any hillside property you purchase as part of your due diligence or if your home inspector recommends that you get one.

New Home Builder/Developer Obligations and Breaches

The law provides that all new home builders/developers have to exercise a reasonable standard of care, knowledge and expertise when building homes. They are responsible if they are negligent and are also responsible for the negligence of their subcontractors. There is an implied warranty of habitability that builders must adhere to.

Claims Against Builders/Developers

If the builder/ developer is negligent, commits fraud, breaches the contract or misrepresents material information, the homeowner may assert a claim against the builder/developer. There is a statute of limitations which limits the time in which construction defect claims may be brought against new home builders/developers. You should check with a construction law attorney to find out the statute of limitation in your state. Laws vary from state to state. If you discover the defect after you purchase the home, this is considered a latent defect. Generally the time limit to assert a latent defect claim is around 10 years from when you discover the defect.

Why an Attorney can Help?

Since construction defect litigation is extremely complicated, it is recommended that you talk to a construction attorney as soon as you discover the defect or deficiency to determine who is responsible for fixing the problem. The attorney has experience with these matters and can advise you of the law, your legal rights, prepare legal documents and file a lawsuit on your behalf.