Property owners or developers who hire contractors to perform construction work expect them to complete the project in a reasonable manner without causing any defects that may compromise the project. Unfortunately, substandard work or materials can cause construction defects. Property owners who assert defective work claims may have various rights under construction law, while contractors may have defenses and claims. Understanding how to address defective work claims arising from a construction project can help you protect your financial and legal interests.
What Are Defective Work Claims?
A project owner may have a defective work claim when a contractor allegedly fails to comply with the project’s plans or specifications, uses non-conforming or substandard materials, or does work that fails to comply with the standards expected in the construction industry. Defective work claims can arise from patent/obvious or latent/hidden defects. An apparent defect may lead to a defective work claim in the middle of a construction project since the project or property owner will more likely immediately notice the defect. Latent defects, on the other hand, may go unnoticed for months or years after project completion.
Although project or property owners more frequently bring defective work claims, general contractors may also have claims against subcontractors they hire to perform specific aspects of the project.
Investigating and Documenting the Alleged Defect
When a defective work claim arises, parties should begin with a thorough site inspection to gather documentation concerning the alleged defect. For example, parties may take photographs or video of the claimed defect, conduct diagnostic tests, review construction progress reports, and examine relevant documents like project plans or materials invoices. Parties may also retain construction engineering experts to assess whether the project actually suffers from a defect.
Reviewing Contractual and Legal Obligations
Parties should also review construction contracts and statements of work to determine the expected scope of work, including the materials that contractors should have used or the specific work they should have performed. Reviewing the construction contract can also help parties identify applicable warranties for construction defects, including whether a property or project owner or a general contractor has the right to remedial performance or financial compensation from the negligent construction company.
The construction contract will also likely include notice and cure requirements, such as how the project or property owner must notify a contractor of defects and what opportunity the contractor has to remedy their defective work. Parties should also examine applicable building codes and state construction laws to assess whether a contractor’s work constitutes a defect.
Resolving the Issue
Defective work claims can be resolved through a collaborative approach. First, project or property owners may contact the responsible contractor(s) directly to negotiate a remediation or repair plan and allocate the cost of repairs, based on each party’s share of fault for the defect. However, should collaboration fail to resolve the matter, parties may invoke the dispute resolution procedures in the construction contract, or in the absence of such clauses, pursue litigation to assert or defend against a defective work claim.
Preventing Future Work Issues
Finally, addressing defective work claims can also involve preventing future issues. Parties can develop more robust quality control measures and inspection procedures during construction to identify defects promptly, allowing contractors to remedy them before construction progresses too far. Parties may also further define the project’s scope and specifications to avoid confusion or disputes over the nature of the work.
Contact a Construction Law Attorney
Construction projects can grind to a halt or contractors can get dragged back into a project due to claims of defective workmanship. Contact August Law today for a confidential consultation with a Michigan construction law attorney to discuss your legal options for obtaining a favorable resolution in a legal dispute arising from defective work claims.