Construction companies and subcontractors do incredibly valuable work. They build homes for people and also help repair, expand or remodel existing edifices. Their work can increase the value of a property and how much the occupants enjoy living there. People will often pay premium prices for work that will improve their homes.
In San Diego, owning real estate is a much bigger investment than it is in many other parts of the country. Homeowners, therefore, invest quite a bit in the maintenance, expansion and construction of their homes and demand top-notch results in many cases.
When clients are dissatisfied with the final product, they could potentially bring a financially-devastating construction defect claim against your business. Recognizing the most common reasons people file claims can help you prevent these issues from negatively affecting your company’s budget or reputation.
Design defects
If you design a privacy fence for ocean-facing porch, it could violate local ordinances. If complaints come in after the completion of the project, the client could potentially take your company to court to demand repair work for free or compensation for the secondary construction or repair expenses they incurred. More serious design defects can also lead to expensive claims, such as when critical housing systems in the property don’t function properly because of design flaws.
Material substitutions
When clients invest hundreds of thousands or millions of dollars in a property, they often want prestige finishing materials. From the trendiest stone countertops to the most exotic hardwood flooring, homeowners may demand expensive and hard-to-locate materials.
When companies substitute cheaper materials without notifying a client and getting their approval in writing, the result may be an expensive defect claim later.
Shoddy workmanship
Your business may try to keep costs for projects more competitive by hiring less-skilled and lower-paid workers for jobs like painting or even drywall mudding. Unfortunately, the fact that those workers don’t have experience with those tasks may be quite evident upon the completion of the project. A space that doesn’t look professionally finished may lead to a client making claims about poor workmanship that could cost your company thousands.
Identifying risk factors for construction defect claims can help you protect your business from massive future losses.