Construction Defect Litigation

What is construction defect litigation?

Construction defect litigation is a lawsuit brought by residential, commercial and public property owners and/or general contractors against construction contractors and subcontractor for allegedly performing their scope of work in such a manner as to fall below the standard of care for the construction industry and/or failing to meet the minimum requirements of various building codes and ordinances.

Construction defects lawsuits come in a variety of manners.

Residential Construction:

Residential construction defect litigation began a major issue for contractors around 20 years ago.

A vast majority of contractors who work on new residential construction projects will be a defendant in construction defect lawsuits -- whether or not their work is defective.

In the past, construction contractors would just give the lawsuit to their insurance broker to handle. The contractor would pay a small deductible at the end of the case -- but this is no longer the case.

Insurance companies and now general contractors are expecting subcontractors to pay high out-of-pocket expenses at the beginning of the litigation.

The terms for these upfront out of pocket expenses are called Self Insured Retentions (SIRs), OCIPs and WRAPs.

Plumtree & Associates has a proven track record for assisting residential construction subcontractors with:

  1. limiting liability
  2. minimizing yearly insurance premiums and
  3. minimizing out of pocket expenses.

Public and Commercial Construction:

Construction defect litigation is a new and growing area of concern for commercial and public work construction contractors and subcontractors alike.

General contractors and property owners are now using construction defect claims as a defense for not paying monies owed on mechanics liens, stop notices and payment bonds claims.

To combat these tactics, the contractor will need assistance in two areas:

  1. collecting monies owed (mechanics liens, stop notices and bond claims) and
  2. defending construction defect claims.

It is essential that both of these issues be addressed simultaneously.

Plumtree & Associates is unique, we have experience with both collecting monies owed to construction contractors and defending construction defect claims.

Main Office: 11132 Winners Circle #G-207 Los Alamitos, CA 90720 Phone: (562)594-3911