{"id":1413,"date":"2013-03-06T06:44:22","date_gmt":"2013-03-06T13:44:22","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=1413"},"modified":"2013-03-05T16:45:05","modified_gmt":"2013-03-05T23:45:05","slug":"legal-matters-avoiding-the-headache-of-defect-claims","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/legal-matters-avoiding-the-headache-of-defect-claims\/","title":{"rendered":"Legal Matters: Avoiding the Headache of Defect Claims"},"content":{"rendered":"

Dan Heilman – February 18, 2013<\/p>\n

Once a construction project is finished, most builders want the same thing: to move on to the next one. But builders occasionally face an impediment in the form of a defect claim filed by a project owner.<\/p>\n

Complaints of defective or poorly installed windows, water intrusion, inadequate ventilation and myriad other issues can mean hassle and expense for builders who aren\u2019t careful to avoid such claims.<\/p>\n

Defect claims, or claims for damages that occur during the construction process, are more common in residential construction. In those cases, the project owner probably isn\u2019t accustomed to dealing with contractors \u2014 as opposed to commercial property owners, who are used to ironing out kinks with contractors as part of their workday.<\/p>\n

Defect claims are also partly a product of the nature of construction: If there\u2019s a miscommunication between the owner and contractor or between the contractor and subcontractor, mistakes can happen.<\/p>\n

\u201cThey can be a real problem if the builder isn\u2019t proactive about them,\u201d said Eric S. Hayes, a shareholder with Brown & Carlson in St. Louis Park. \u201cPart of the issue is that a lot of them don\u2019t know that it\u2019s not just the building codes that need to be followed, but also the standards in the industry. There might be a violation of an industry standard that isn\u2019t codified.\u201d<\/p>\n

Those types of gray areas can easily lead to defect claims. Industry standards dictate that a framer is required to frame windows so that they\u2019re weatherproof \u2014 but an exact definition of \u201cweatherproof\u201d is hard to come by.<\/p>\n

\u201cIs there a specific way you\u2019re supposed to reverse-lap the windows when you install them?\u201d said Hayes. \u201cThere are certainly codes on proper installation, but there are also standards that are open to interpretation.\u201d<\/p>\n

That lack of exact guidance can inadvertently lead to substandard work, which in turn can easily lead to defect claims. Mark J. Peschel, an attorney with Johnson & Lindberg in Bloomington, points to poorly flashed windows and entryways as a common defect claim subject.<\/p>\n

Minnesota\u2019s building codes say that exterior openings exposed to the weather shall be flashed in a manner to make them weatherproof, but they don\u2019t specify how that goal should be accomplished.<\/p>\n

\u201cBuilders tend not to know the weatherproofing code provisions as well as they should,\u201d said Peschel. \u201cThat leads to a lot of water intrusion issues.\u201d<\/p>\n

Get it in writing<\/strong><\/p>\n

Even when builders do everything according to code and standard, that\u00a0doesn’t\u00a0make them immune from defect claims.<\/p>\n

\u201cSome complaints say the builder didn\u2019t use the right material,\u201d said Paul Grinde, a partner with Ryan & Grinde in Rochester. \u201cSometimes it\u2019s just a matter of, \u2018This doesn\u2019t look right.\u2019\u201d<\/p>\n

Grinde said that if a builder is thorough about having the owner sign off on every blueprint and every change order, it can stop defect claims before they start.<\/p>\n

\u201cIf there\u2019s a list of everything going into the house, have the owner initial each page,\u201d he said. \u201cThat way they\u2019re saying they know exactly what\u2019s going into the house. Then if they say later, \u2018I wanted Anderson Windows,\u2019 you can say, \u2018No, here you said we were going to use Integrity Windows.\u2019\u201d<\/p>\n

Defect claims rarely go to trial. The vast majority settle, either in mediation or between mediation and trial. A careful builder can even avoid having claims mediated: Minnesota statute dictates that contractors be given the opportunity to correct building defects. Taking advantage of this \u201cdo over\u201d can result in a happy owner and one fewer legal headache.<\/p>\n

It\u2019s also important for builders to know that even if they think there might potentially be a claim, they should contact their insurer \u2014 don\u2019t wait until they\u2019re dealing with a summons and complaint.<\/p>\n

\u201cMost claims are turned over to insurance companies, and they hire defense counsel to defend them,\u201d said Peschel. \u201cAt that point it tends to become a battle of experts.\u201d<\/p>\n

Hayes said builders can avoid the issue of defect claims altogether by being responsive during all phases of the construction process. If an owner writes a letter to a builder outlining areas of concern in a project, the builder should take that to mean that the business has been put on notice of a potential claim.<\/p>\n

\u201cI often hear, once things have gone sour and moved toward litigation, that the homeowner contacted the general contractor a dozen times about a leaking basement and nothing was done, so they were forced to sue,\u201d said Hayes. \u201cSome good, proactive service on the front end can save a lot of time and energy. Just respond to the questions and don\u2019t let it fester.\u201d<\/p>\n

via Legal Matters: Avoiding the headache of defect claims | Finance & Commerce<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Dan Heilman – February 18, 2013 Once a construction project is finished, most builders want the same thing: to move on to the next one. But builders occasionally face an impediment in the form of a defect claim filed by a project owner. Complaints of defective or poorly installed windows, water intrusion, inadequate ventilation and… Continue reading Legal Matters: Avoiding the Headache of Defect Claims<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14,4],"tags":[228,229],"class_list":["post-1413","post","type-post","status-publish","format-standard","hentry","category-construction-2","category-construction-defects","tag-construction-defect-claims","tag-construction-defect-litigation","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nLegal Matters: Avoiding the Headache of Defect Claims - Advise & Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/legal-matters-avoiding-the-headache-of-defect-claims\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Legal Matters: Avoiding the Headache of Defect Claims - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Dan Heilman – February 18, 2013 Once a construction project is finished, most builders want the same thing: to move on to the next one. 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