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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.

Plumbing, Electrical And Mechanical Claims Are More Common Than You Think

The institute, a non-profit that works to educate community associations and help provide them with guidance in HOA governance and management, says that the vast majority of claims involve disputes over workmanship. While many in the construction industry are aware of some of the more common issues that lead to litigation, such as water damage, faulty drainage, foundation problems and the like, the institute says that poor workmanship is the leading issue in condo projects. Claims often focus on plumbing problems, faulty electrical work of mechanical problems, according to the study.

Entrepreneurs, contractors and builders are often able to resolve minor disputes without legal action, according to the study. However, construction disputes can have complex issues that may require a strong defense. A solid contract may provide a strong defense - if you have planned ahead with a detailed contract.

Other disputes may require skilled negations and aggressive advocacy. If you are a developer, contractor or other professional in the construction industry facing allegations of breach of contract, poor workmanship or other form of construction defect claim, speaking with a business-savvy construction defect lawyer can help you to protect your rights and good name.

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