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 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:
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:
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: 4012 Katella Suite 102 Los Alamitos, CA 90720 Phone: (562)594-3911