CONSTRUCTION DEFECT CLAIMS CAN LEAD TO COMPOUNDED RISKS

If a property owner claims there is a construction defect, that not only brings the project’s integrity into question but also your business’s reputation. So, how can you take steps to prevent these claims from causing such damage? Here are three things to know before beginning a project to effectively protect it and manage construction defect claims. 1. DOCUMENTATION IS KEY California and Los Angeles County require certain permits and documents in order for a construction project to move forward. Los Angeles County will also conduct plan checks to ensure everything is up to code. Detailed documentation will be important while making your plans. However, keeping notes throughout every step of the project will also be essential. Documenting all aspects of the project helps you: Stay updated and aware of the project’s progress Proactively catch and handle issues that could result in disputes Create a record of evidence that can help manage defect claims Maintaining an organized file for each project has many more benefits than managing defect claims. It is a good practice to have in place to protect the business against various risks. 2. COMMUNICATION IS JUST AS IMPORTANT Documentation is critical – but so is communication. Keeping the relevant parties in the loop on any project updates will help to reduce the risk of misunderstandings. Consistent communication during the project encourages parties to address and resolve issues as they arise. 3. QUALITY CONTROL STRATEGIES SHOULD BE IN PLACE All professionals in the construction industry understand the importance of quality control. It is essential at every step, from designing to building. You should establish several levels of quality control and quality assurance programs for each portion of the project, so you can stay ahead of any potential issues that could result in defect claims. Of course, it will also help to obtain guidance from an attorney experienced in construction and business law. A professional can help construction businesses create strategies before defect claims become a serious issue.

Many challenges can crop up when working on a construction project. Among these challenges, errors are the last thing that contractors or project owners want to face. Yet, they are not uncommon as you navigate the process. Design errors or mistakes are one such issue that can result in seriou s construction disputes and delays. It is important to determine who is liable when it comes to defects and design errors. SO, WHO IS RESPONSIBLE FOR DESIGN ERRORS? Many might assume the architect – or the person who created the project design – is responsible for design errors. That is not necessarily true. Architects might indeed be responsible for an error or omission in certain cases. However, liability may also fall to: The project owner The contractor or subcontractors Engineers or other third parties involved Responsibility might span across more than one party as well. Determining the origin of the error will help determine liability. The project owner is often the one funding the project overall, but who pays to fix the error will depend on the details of the project. Regardless, generally the contractor must highlight the changes required to repair the error in a change order request. BUT YOU MUST CONSIDER THE FACTORS OF THE SITUATION As it is with the majority of construction issues, the answer to who is responsible often depends on various factors, including, but not limited to: The details of the contract The process of the project The source of the error The terms of liability are different for all of the parties involved in a project – and they often change depending on the details of the project as well. In these cases, it is often critical to seek legal guidance before moving forward to mitigate the impact on the project and avoid an escalating dispute.

Construction projects are subject to many internal and external factors. Due to this, delays are not an uncommon occurrence. Whether delays are the result of bad weather conditions or supply chain issues, contractors and their clients cannot control every aspect of the project. Delay issues are very common construction disputes. Therefore, new and experienced contractors alike need to know when their clients may have a reason for a delay claim. 2 PARTICULAR TYPES OF DELAYS THAT POSE A RISK Common obstacles that contractors faced during the height of the COVID-19 global pandemic involved supply chain issues. The lack of materials put various projects on hold across California and the country. This widespread issue was out of contractors’ and clients’ control, meaning they were excusable delays. However, there are situations when clients may have a claim, including if the reasons for delays are: Inexcusable: As mentioned above, one example of an excusable delay is the disruption in supply chains. Force majeure clauses in contracts also cover many excusable delays – and protect the contractor. However, a customer may have a delay claim for inexcusable delays. If the contractor’s or company’s actions extend the project, it could be an inexcusable delay. For example, if contractors are negligent or fail to follow proper permitting procedures, then a customer may have a legal claim to collect damages. Foreseeable: If the customer argues that a delay was the result of a foreseeable issue, they might also have grounds for a claim. These situations can be rather subjective – and complex. Yet, issues about foreseeability play a large role in many construction disputes. Delay claims might be common in the construction industry, but a customer’s claim must meet specific conditions to be successful. Contractors should seek knowledgeable legal guidance as soon as possible if facing claims. That way they can protect their bottom line and business reputation. This also highlights how critical it is for contractors to take extra care in crafting contracts before the project begins. An attorney can also provide counsel on how to establish a protective and effective contract.