Construction Defects Increase as Contractors Work Outside of Expertise

November 03, 2012

Construction Defects Increase as Contractors Work Outside of Expertise

The economy has forced many builders and contractors in Colorado and elsewhere in the country to take on projects outside of their expertise in order to stay afloat or gain new business. However, the consequence of builders and contractors taking on projects outside of their wheelhouses may lead to a rise in construction defects detrimentally affecting commercial and residential clients. When a builder takes on a project outside of an area of expertise, the builder remains responsible for any negligence and defects.

The tough economy has led to fewer work options for contractors in Colorado, and because of fewer projects many contractors have decided to change their operations by taking on new types of projects and by going into new geographic locations -- both of which increase risk. Builders who commit to unfamiliar projects are often unfamiliar with the risk involved in the new project in a few different ways.

Unfamiliarity Creates Numerous Risks

When a builder transitions from one area, such as buildings, to another area, such as infrastructure like roads, the builder will likely encounter new, unfamiliar risks inherent in the different work. In addition, a builder who takes on a new type of project may also have difficulty hiring fully-trained subcontractors because the builder may not completely understand the required skill set for the new job. A new project in a different geographic area creates separate risk issues and can compound the risk of taking on a new type of project.

A new geographic area can put a contractor into a different pool of subcontractors, which can make it harder to identify the good subcontractors from the bad. A contractor who enters a new geographic area also may not be able to predict the cost of hiring subcontractors as easily. In addition, a new locale can also affect common contracting issues, such as familiarity with soil conditions. Finally, if a contractor wins work in a different jurisdiction, the builder may not be familiar with state and local laws, regulations and codes. When a commercial or residential consumer hires a contractor the biggest issue is whether the builder has the expertise to successfully complete the job.

Construction Defect Liability

There are a few different ways builders and contractors can be held liable for defects. A construction defect is a condition in the home, building or finished project that reduces its value. Some defects may be obvious and others may not rear until years after construction is completed.

The first and perhaps most common way to hold a builder liable for a defect is by breach of contract. The building contract outlines the obligations of the builder, and a client may generally pursue a construction defect when it is beyond a failure to build the project according to the plans. The second route to hold a contractor liable is by alleging negligence. The law requires builders to exercise a reasonable degree of care, knowledge and skill usually used by similar professionals. If a builder fails to meet that obligation, the contractor may be liable. A builder may also be held liable for a defect under breach of warranty. An express warranty may make a promise regarding the condition of the property, and a new home for sale to public comes with an implied warranty that it was designed and built in a reasonable workmanlike manner. A defect in either type of warranty may be enforceable.

If you suspect your property or home is subject to a defect, contact an experienced construction law attorney to learn more about construction defects and your legal options.

Article provided by The Nelson Law Firm, L.L.C.
Visit us at http://www.nelsonlawfirm.net/