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Study: New condo developments lead the way for construction defect claims

Developers, contractors, subcontractors and others in the construction industry may be well aware that any new construction or remodeling project may eventually lead to some form of construction defect claim. As the size of a project increases, the cost of litigation can also quickly rise. Large-scale developments, condominium projects and other multi-functional properties bring different economies of scale to bear in any potential litigation.

A recent study looked into claims of construction deficiencies and concluded the majority of disputes occur related to the construction of new condominium projects as compared to townhome associations and single family homes, according to Builder News. Obviously, condominium associations often have more pooled resources than the buyer of a single family home. However, the research, conducted by the Community Associations Institute, did not address the increased resources that condo groups may have to pursue a construction defect claim.


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