Top 5 Causes Leading to Construction Defect Litigation

The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways:

• Several legal theories, including negligence, breach of contract, breach of warranty, fraud, and strict liability, can support construction defect claims.
• Liability may extend to contractors, subcontractors, architects, engineers, suppliers, manufacturers, and insurers.
• Damages can include repair costs, diminished property value, relocation expenses, and attorneys’ fees.

What is Construction Defect Litigation?

Construction litigation is complex, as it often involves multiple parties and high financial stakes. Because construction defects can lead to major building issues, frustration, and costly delays, they are a frequent source of disputes. Construction defect litigation can involve a variety of claims, including allegations of poor design, code violations, faulty workmanship, and defective materials.

A construction defect is a flaw or deficiency in the design, materials, or workmanship of a building or structure that can affect its integrity, functionality, or safety. Common examples include: the defective design of a building; the use of unskilled labor; the installation of incorrect or subpar materials; and the failure to comply with building codes. Defect claims may relate to the design and structure of the building, as well as other building components, such as electrical, mechanical, or plumbing systems.

Several legal theories, including negligence, breach of contract, breach of warranty, fraud or misrepresentation, and strict liability, can support construction defect lawsuits. Claims may also be covered by your insurance or the insurance of a responsible party. Accordingly, it is important to work with experienced counsel to determine the best legal strategy for you.

Common Construction Defect Claims

Construction defect claims arise when the quality of the work or materials falls below applicable standards. Below are the most common types of construction defects:

• Design Defects: These issues arise from architectural or engineering designs that were poorly executed or otherwise failed to perform as anticipated. Examples include a poorly designed roof that results in water leakage or an inadequately designed balcony that lacks the proper structural support.
• Substandard Materials: This type of defect involves contractors using materials that are substandard. For instance, the contractor may have used a material that was cheap, damaged, or inappropriate for the intended use. This type of defect may also arise when a contractor fails to use the materials specified in the construction contract.
• Workmanship Defects: A workmanship defect is a problem with how the work was performed. This may involve both contractors and subcontractors. For example, improper electrical wiring can create a fire hazard, and faulty plumbing can cause water damage.
• Code Violations: Code violations can also lead to a construction defect claim. Examples include faulty wiring, insufficient fire escapes, or the use of materials that don’t meet safety standards. Code violations can lead to significant safety issues, as well as costly fines and potential property condemnation.
• Subsurface Defects: Defects can also result from issues on the ground where the property is built. For instance, builders may fail to properly account for shifting soil or steep hillsides when constructing foundations.

Pursuing Construction Defect Litigation

Construction defects can affect a property’s value, maintenance costs, and safety. Once a construction defect is discovered, it is imperative to take prompt legal action. There are several types of legal action for construction defects, including:

• Breach of contract
• Negligence
• Express and implied warranty
• Breach of a homeowner association’s declaration or covenants, conditions, and restrictions (CC&Rs)
• Professional negligence against a design professional

Given that construction projects involve numerous entities, liability may be assigned to one or more responsible parties, including subcontractors, architects, engineers, suppliers, manufacturers, and insurers. Damages in construction defect litigation can include the repair costs, property value diminution, relocation expenses, and attorneys’ fees.

You Need an Experienced Construction Litigation Attorney

Because construction defect claims often involve numerous parties and costly remedies, it is imperative to work with a skilled construction litigation lawyer. The attorneys in Scarinci Hollenbeck’s Construction Litigation Practice have extensive construction industry experience, particularly in New Jersey and the metropolitan New York City area. We represent all of the key participants in the construction process, including contractors, developers, engineers, architects, buyers, sellers, and others.

When disputes arise, our clients can count on us to work tirelessly to reach a successful resolution that not only protects their best interests, but also gets the project back on track. Because construction litigation is often burdensome for everyone involved, negotiating an early resolution can save valuable time and money. However, when an acceptable settlement can’t be reached, we are prepared to try your case in court aggressively.

Construction defect disputes move quickly once a flaw is discovered, and the right strategy depends on the parties, contracts, and insurance coverage involved. For guidance on pursuing or defending a construction defect claim, contact Paul S. Grossman or another member of Scarinci Hollenbeck’s Construction Litigation Practice.