According to IRMI, construction defect is defined as, “a deficiency in the design or construction of a building or structure resulting from a failure to design or construct in a reasonably workmanlike manner, and/or in accordance with a buyer’s reasonable expectation. The most dangerous defects have the capacity to fail, resulting in physical injury or damage to people or property. However, many defects present no increased risk of injury or damage to other property but nevertheless cause harm to the property owner in the form of loss of use, diminution in value, and extra expenses incurred while defects are corrected.” When someone is injured as a result of a construction defect, they can make a claim against the construction company responsible for performing the work.
There is only one surefire effective way to protect yourself from a claim. Only by maintaining and organizing complete records of the construction project can you protect yourself from insurance claims against your organization. One of the most important records in this effort would be schedules and cost estimates. By keeping track of quality control documents, procedures, and field activity you can establish a list which will be beneficial in your defense. Other documents to be included are change orders, meeting minutes, field diaries, inspection reports, e-mails, and product cut sheets.
The more details you can provide the stronger your defense will be. Also keep track of any issues that arise, conversations you have with property owners about the various issues, and a list of which employees worked on said problem. We know that construction Defect Claims are a real part of doing business and as a construction contractor it is your duty to learn and understand what you can do to protect your business and its longevity.