DEFECTS

Construction defects are common, though most defects are minor and fairly inconsequential.
However, the most dangerous defects could risk damage to either people or the property
itself.

Regardless of whether a defect is major or minor in nature, a problem remains: defects

typically aren’t discovered until long after completion of the work, and defending against
defect claims is a tall (and expensive) task.

What Is a Construction Defect?

Generally, construction defects refer to a deficiency in the construction process – be that in

design, materials, or workmanship – which leads to a failure in some aspect of the structure
being built, and that causes damage to a person or property (financial or otherwise). To put it
another way, a construction defect must include all 3 of the following:

 a deficiency in the construction process itself (resulting from poor design, materials,
or workmanship);

 the deficiency must lead to a failure in the structure (that’s being built during the
project);
  that failure must cause damage to a person or property (financial damages or
otherwise.

Sometimes, a defect might be as simple as falling short of an owner’s expectations. Other

times, it could be as serious as a structural defect in the property. Obviously, construction
defects and the resulting fallout will vary greatly based on the source and severity of the issue
at hand.

Characteristics of Construction Defects?

After distinguishing the type of construction defect, they’re commonly classified as being
either a patent or latent. Patent defects are those that are known or readily obvious upon
inspection. They’re the ones that a contractor, sub, or other trade should find during normal
inspections. Latent defects, on the other hand, are those that are concealed or otherwise not
readily observable. Latent defects probably won’t be found even by someone who inspects
the work pretty thoroughly.

Patent defects are obvious – and often, that means there’s an easy fix. These defects are
surface-level, and often merely aesthetic, so accessing and repairing the issue is typically not
that invasive. On the other hand, since latent defects aren’t obvious, that usually means
they’re below the surface or even a defective system in the guts of a project. As a result,
latent defects tend to be a little more problematic.

Let’s break down the big three construction defect types a bit more:

i. Design Defects

These defects result from a design professional’s failure to produce accurate and well-
organized construction documents. Design defects occur by error or omission. Errors usually
require some sort of redesign and replacement of a component part, while omission can be
remedied by adding to a contractor’s scope of work through change orders.

ii. Material Defects

Defects that arise due to damaged or inadequate building material are called “material
defects”. When these defects come from the manufacturer, the parties using these materials
usually won’t become aware of the defect until after they’ve already been incorporated into
the project. This makes material defects particularly expensive because they may require
additional labor and new materials.

iii. Workmanship Defects

When people think of construction defects, typically, workmanship defects are what come to
mind. These defects occur when a contractor fails to build a structure or component part in
accordance with the construction documents. Workmanship defects can range from simple
aesthetic issues to structural integrity problems. Allocating liability and determining how
(and even who) failed to abide by the property standard of care can be extremely complex.
What Is “Standard of Care?”

Every project participant needs to perform their contractual obligations up to a designated

“standard of care”. This means their work should be done in accordance with all of the
contract and design documents. For example, the AIA general conditions require a contractor
to:

 visit the site to become familiar with the local conditions;

 review the contract documents to facilitate coordination onsite;

 to perform work in accordance with the acceptable standards of workmanship.

How Does Construction Defects Litigation Work?

The biggest problem with construction defects is the amount of litigation involved.
Construction defect litigation is a long, complex, and costly process – not unlike other types
of construction litigation. Depending on the defect, a lawsuit can include numerous
defendants, varying insurance policy coverages, anti-indemnity statutes, and fact-intensive
discovery procedures. Basically, construction defects litigation is great… for the bottom lines
of construction lawyers, but it can be a nightmare for the construction businesses themselves.

Determining Damages

If you’re sued based on an alleged construction defect, not only do you have to pay to defend
yourself, but you might also be on the hook for any number of damages. Determining the
scope of damages is particularly challenging, because of the number of factors that can affect
the award. For instance: what was the extent of the damage? The court can include the cost of
repairs, the decline in property value, loss of use, court costs, and, in some cases, even
punitive damages (if gross negligence or recklessness was present). If there are multiple
defendants, then the court will need to determine how to spread liability amongst everyone.

Timeline to File Suit

The other challenge with construction defect litigation is time. Most defects are discovered
long after the completion of a project. Whether a lawsuit can be filed once the defect is
discovered will be determined by the state’s statute of repose. It’s similar to a statute of
limitations, which limits the amount of time someone has to file a lawsuit. However, a statute
of repose works a little differently.

Instead of starting the clock when the “harm” occurred, it starts at a particular event (typically
the project completion date). Depending on your state, this timeline can be as short as 4 years
or as long as 20 years! Construction businesses could find themselves defending a lawsuit
from a project that’s been long since closed in their books. Gathering all the documentation
required to prove your case could prove tricky.

How to Minimize Construction Defects – and Their Impact

Everyone on a project is responsible for minimizing construction defects. There are proactive
measures everyone can take to decrease the chance of encountering one.

Review the Contract Terms and Policy Coverage

With so many people involved on a project, there are a lot of places where blame could land.
For all project stakeholders (designers, contractors, subs, and suppliers, etc.), the contract
should clearly assign accountability and confirm that everyone is responsible for their own
work. Also keep an eye out for provisions concerning responsibilities, liabilities, and any
risk-shifting language. A clear understanding of your liability coverage will also help
minimize your exposure to defect claims. Plus, it’s a good idea to confirm that everyone else
on the project has sufficient coverage as well.

Implement Quality Control Programs

Involve all the project participants early on and form some sort of quality assurance
group. Everyone is ultimately responsible for avoiding defects, so this should be a
collaborative effort. This group should meet regularly, review plans and make
occasional site assessments. Speaking of site assessments, another helpful tool to avoid
defects is a solid daily report system in place. Conducting daily inspections of the work
and materials can help detect issues early on. Furthermore, keeping these well
documented and organized can assist you later on when an old project presents a defect
claim.

Act Quickly

If a defect is discovered, perform a walk-through. Determine what the issue is and

present it to the owner, contractor, or management team as soon as possible. Then you
can decide how to proceed in the most cost-effective way. Having a quality control
program provides an opportunity to repair the defective work prior to completion,
which can reduce monetary damages and prevent future litigation.

Construction defects can quickly turn a project upside down, and, with so many parties
working on the job, they’re not always easy to identify or manage. Everyone involved
with a project – from both the design team and the construction team – must do their
part to avoid defects. Quality control programs, communication, and documentation
are an easy, yet effective way to minimize defective work which can help both your
bottom line and your reputation.

Last updated: Nov 03, 2020 Published: Feb 12, 2019 Reading Alex Benarroche
 B. BUILDING DEFECTS

Due to ageing and natural deterioration of the building fabric, many common types of defects
are found on buildings. Some of the defects may affect the structural safety of the buildings
while most of them are localized and non-structural in nature.

Building owners or occupants should always be aware of the condition of their buildings. To
avoid unnecessary panic, building owners should:

 identify the symptoms,

 understand the possible causes of the defects,

 carry out timely repair and maintenance works to keep their buildings in good
structural condition.

Common types of Building Defects

1. Non-structural cracks

 Hair-line cracks

 Cracks that stretch to many directions

 Cracks that appear between non-structural walls and structural members

2. Spalling of concrete

 Stains of water or rust are found on the surface or there is seepage of water

 Cracks appear

 Spalling of rendering/tiles

 The surface bulges and large pieces of concrete peel off, exposing the rusty steel bars

3. Structural cracks

 Cracks that penetrate the surface rendering into the structural concrete or load-bearing
brick wall

 Cracks that appear on structural elements of buildings such as beams

 Long cracks that run across the wall

 Rusty stains that appear on the cracks

 Diagonal cracks that appear on the corners of window frames or door frames

4. Defective external wall finishes

  Debonding of finishes / tiles from the wall resulting in hollow sound when tapped
with a hammer

 Cracking of the wall surface

 Bulging with a hollow base

 Falling off

 Loosening of finishing

Repair and Maintenance of Building Defects

Building owners have full and ultimate responsibility to maintain not only their own premises
but also the common parts of the building. Such responsibility is NOT released by just
reporting the issues to the relevant government departments.

Type of Defect Actions Required

 Building owners should keep in view the conditions of the

defects.
Non-structural cracks
 Unless the circumstances have changed, owners may carry
out repair as necessary.

Spalling of concrete /  Building owners should arrange for timely repair and
structural cracks / maintenance works to upkeep the building in good
defective external wall condition.

 Respective building owners should arrange themselves for

Defects are found
the appointment of building professionals to coordinate
within own premises
repair of the defects.

Defects are noted in the  Building owners should alert the owners’ corporation/
common parts of the management company for arranging the appointment of
building building professionals to coordinate the necessary repair
Type of Defect Actions Required

works.

 The cost should be borne by concerned building owners

normally according to the shares stipulated in the deed of
mutual covenant.

Building owners who intend to carry out building repair works should consult building
professionals on the appropriate action to be taken, including the appointment of Registered
Contractors or Registered Minor Works Contractors for carrying out the necessary repair
works.