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What are challenges to dealing with construction defect claims?

On Behalf of | Mar 3, 2025 | Construction Law |

Construction defect claims can lead to significant legal battles. Homeowners, contractors, and developers often face complex rules that determine liability, damages, and resolution methods. Understanding these challenges can help you prepare for potential disputes.

Defining construction defects under California law

A construction defect is any flaw in design, materials, or workmanship that reduces a property’s value or safety. California law categorizes defects as patent (obvious) or latent (hidden). Latent defects can emerge years after construction, making them harder to prove. The Right to Repair Act (SB 800) outlines a process for homeowners to address defects before filing a lawsuit.

Statutes of limitations and legal deadlines

Timing is a major challenge in defect claims. California has strict statutes of limitations, which sets deadlines for legal action. For patent defects, one typically has four years from completion to file a claim. Latent defects allow for a longer period—up to ten years. Missing these deadlines can result in those claiming there was a defect losing the right to seek compensation.

Proving liability and damages

To succeed in a claim, the homeowner must prove that a defect exists and caused harm. This often requires expert testimony from engineers or construction professionals. Defendants may argue that improper maintenance or natural wear and tear caused the damage, complicating liability. If multiple parties contributed to the defect, assigning fault becomes even more complex.

Resolving disputes through alternative methods

Litigation is costly and time-consuming, so California encourages alternative dispute resolution (ADR). Mediation and arbitration can provide faster and less expensive outcomes. Many construction contracts include ADR clauses requiring parties to attempt resolution before going to court. 

Understanding your construction contract‘s dispute resolution terms can help you defend your case.