You found an excellent, highly recommended general contractor and are excited to finally dive into that home renovation project. As the project moves along you realize there is an issue. Maybe the roof is leaking or cracks are appearing in the foundation. Upon further review, it becomes apparent one of the subcontractors is responsible for the defect. What happens next? Who is responsible for the expenses resulting from the defect?
Although the exact answer depends on the details of the situation, the following guidance is generally applicable and provides three tips that can help homeowners to better understand how to preserve legal remedies in this type of situation.
Step one: secure the site and document the defect
The first step is to address safety and prevent further damage. Document everything before anyone “fixes” the evidence. Gather evidence like dated photos and video, and consider bringing in an independent expert to help identify cause and scope.
Step two: review the contracts and notice requirements
The language of these documents serve as a guide to remedies. When building a legal strategy it is important to include language from applicable contracts. Pay close attention to warranty language, indemnity provisions, insurance requirements and dispute resolution clauses. Also confirm any notice deadlines for claims, backcharges or insurance tenders. Missing a notice requirement can weaken otherwise strong rights.
Step three: preserve recovery options
If the subcontractor refuses to cooperate or disputes the defect, it can be wise to preserve claims through proper notices, expert analysis and careful cost coding. Consider whether the contracts require mediation, arbitration or litigation and evaluate whether a negotiated repair agreement can resolve the issue faster.
Without proper action a subcontractor’s defect can result in big expenses for the homeowner. Legal counsel can review the situation and guide a response which often includes prompt documentation, contract driven notices and disciplined cost tracking to better ensure the issue is a manageable correction and does not escalate into an expensive, prolonged dispute.
