Construction Defect

Defects may stem from poor workmanship, design errors, or substandard materials, causing issues such as structural damage, leaks, or soil movement that affect foundations, stucco, or framing.

Construction Defect

Defects may stem from poor workmanship, design errors, or substandard materials, causing issues such as structural damage, leaks, or soil movement that affect foundations, stucco, or framing.

Construction Defect

Defects may stem from poor workmanship, design errors, or substandard materials, causing issues such as structural damage, leaks, or soil movement that affect foundations, stucco, or framing.

Litigation Often Involves Multiple Defendants

Construction defect litigation in California encompasses legal actions brought by property owners against those responsible for building or developing structures. The owners are claiming defects/flaws in the work on their property that affect the property's integrity, safety, or value.  These claims may arise from workmanship, design, and/or materials that cause damage due to structural issues, leaks, or poor-quality workmanship.  Laws like the Right to Repair Act (Civil Code §895 et seq.) discuss the building standards and set pre-litigation notice and repair opportunities before filing suit. SLB is knowledgeable and experienced in navigating the Right to Repair Act to protect your interests.

The parties to such an action may include developers, general contractors, subcontractors, architects, engineers, and material suppliers. Generally, the property owner will name the builder or general contractor, and they will then make claims against others for indemnity or contribution. Insurers typically have a role in funding defenses, investigations, and settlements. As a result, litigation often involves multiple defendants, resulting in complex litigation with numerous allocations of fault among parties.

Common claims in construction defect suits include breach of contract for failing to meet project specifications, negligence for failing to meet industry standards for construction, and implied warranties of habitability or fitness. Examples of such claims include leaky roofs, windows, and/or plumbing, as well as soil movement that causes damage to foundations, stucco, and framing.

We Understand the Business of Construction

SLB collectively has hundreds of years of experience defending contractors, subcontractors, vendors, suppliers, architects, engineers, surveyors, and others in the construction field against construction defect litigation. SLB is panel counsel with dozens of insurance carriers. The lawyers at SLB understand the business of construction and apply that knowledge to protect their clients' interests. And, should a matter proceed to litigation, the lawyers at SLB have tried and/or arbitrated dozens of cases and know what it takes to protect our clients.

Understanding Construction Defect Litigation

Construction defect claims arise when property owners allege that flaws in design, materials, or workmanship have compromised the integrity, safety, or value of a structure.

Complex Multi-Party Litigation

These cases often involve developers, contractors, subcontractors, architects, engineers, and insurers—creating complex disputes with multiple layers of fault and indemnity.

Common Claims & Examples

Typical allegations include breach of contract, negligence, and warranty violations related to issues like leaky roofs, faulty plumbing, or structural movement.

Experienced Defense for Construction Professionals

With hundreds of years of collective experience, SLB defends builders, subcontractors, and design professionals, leveraging deep industry knowledge and strong insurance carrier relationships.

Navigating Insurance & Risk Management

Insurance coverage and risk transfer are critical in construction defect litigation. SLB helps clients coordinate with insurers, tender claims, preserve evidence, and mount an effective defense.

Construction Defect Frequently Asked Questions

How do insurance, indemnity, and risk transfer considerations affect construction defect litigation?

Insurance considerations significantly influence construction defect litigation in California. They may play a role in how claims are funded, defended, and resolved. Risk transfer, such as indemnity, is also paramount. Through contractual indemnity and insurance, the risk to the contractor is borne by the parties responsible for damages.

What are the types of insurance relevant to construction defect claims?

Commercial General Liability (CGL) Policies: Most contractors carry CGL policies, which cover “property damage” or “bodily injury” arising from an “occurrence” (e.g., an accident or defective work). These policies often fund defense and indemnity in defect litigation. Errors and Omissions (E&O) Insurance: Covers architects, engineers, or designers for design-related defects, though coverage is narrower than CGL. Wrap Policies: Common in large projects, these policies cover all parties (developers, contractors, subcontractors) under a single policy, streamlining claims but complicating liability allocation. Builder's Risk Insurance: Covers damage during construction, but typically excludes defects that occur after completion.

What kind of events trigger coverage in a construction case?

CGL policies cover defects only if they result from an “occurrence” causing “property damage” or “bodily injury” during the policy period. California courts have interpreted defective work itself as not an occurrence, but resulting damage (e.g., water damage from a leaky roof) is usually included in coverage.

What do I do if I am served with a lawsuit?

Call Your Insurance Broker or Carrier. - Notify your insurance carrier immediately when you receive a lawsuit or a CSLB complaint to avoid coverage denials for late notice. - Don't just assume that the claim/lawsuit is not covered.  Let the insurer investigate and advise you of the coverage under your policy. - Tender claims to the insurers of all potentially responsible parties (e.g., subcontractors) to spread liability. Retain experienced Construction Defect counsel to assist you with tendering claims and provide advice about the construction litigation and insurance issues. - An attorney can assess defenses (e.g., statute of limitations, causation disputes, homeowner negligence) and coordinate with insurers. - The attorney will file a response to the complaint to avoid a default judgment. - Choose counsel experienced in multi-party litigation, as defect cases often involve subcontractors, architects, or developers. Preserve Evidence and Document the Project. - Gather all project-related documents, including contracts, subcontracts, change orders, warranties, inspection reports, permits, and correspondence with the plaintiff or subcontractors.  Emails, text messages, and photos should also be preserved in the format that they existed when the work was completed (.jpg, Outlook, Google Mail, and the like.) - Evidence is critical to proving compliance with contract terms, building codes, or industry standards. Lost or destroyed evidence can weaken your case.

Need more answers?

Drop us a line or email and we will follow up immediately.

Contact Us

Construction Defect Frequently Asked Questions

How do insurance, indemnity, and risk transfer considerations affect construction defect litigation?

Insurance considerations significantly influence construction defect litigation in California. They may play a role in how claims are funded, defended, and resolved. Risk transfer, such as indemnity, is also paramount. Through contractual indemnity and insurance, the risk to the contractor is borne by the parties responsible for damages.

What are the types of insurance relevant to construction defect claims?

Commercial General Liability (CGL) Policies: Most contractors carry CGL policies, which cover “property damage” or “bodily injury” arising from an “occurrence” (e.g., an accident or defective work). These policies often fund defense and indemnity in defect litigation. Errors and Omissions (E&O) Insurance: Covers architects, engineers, or designers for design-related defects, though coverage is narrower than CGL. Wrap Policies: Common in large projects, these policies cover all parties (developers, contractors, subcontractors) under a single policy, streamlining claims but complicating liability allocation. Builder's Risk Insurance: Covers damage during construction, but typically excludes defects that occur after completion.

What kind of events trigger coverage in a construction case?

CGL policies cover defects only if they result from an “occurrence” causing “property damage” or “bodily injury” during the policy period. California courts have interpreted defective work itself as not an occurrence, but resulting damage (e.g., water damage from a leaky roof) is usually included in coverage.

What do I do if I am served with a lawsuit?

Call Your Insurance Broker or Carrier. - Notify your insurance carrier immediately when you receive a lawsuit or a CSLB complaint to avoid coverage denials for late notice. - Don't just assume that the claim/lawsuit is not covered.  Let the insurer investigate and advise you of the coverage under your policy. - Tender claims to the insurers of all potentially responsible parties (e.g., subcontractors) to spread liability. Retain experienced Construction Defect counsel to assist you with tendering claims and provide advice about the construction litigation and insurance issues. - An attorney can assess defenses (e.g., statute of limitations, causation disputes, homeowner negligence) and coordinate with insurers. - The attorney will file a response to the complaint to avoid a default judgment. - Choose counsel experienced in multi-party litigation, as defect cases often involve subcontractors, architects, or developers. Preserve Evidence and Document the Project. - Gather all project-related documents, including contracts, subcontracts, change orders, warranties, inspection reports, permits, and correspondence with the plaintiff or subcontractors.  Emails, text messages, and photos should also be preserved in the format that they existed when the work was completed (.jpg, Outlook, Google Mail, and the like.) - Evidence is critical to proving compliance with contract terms, building codes, or industry standards. Lost or destroyed evidence can weaken your case.

Need more answers?

Drop us a line or email and we will follow up immediately.

Contact Us

Construction Defect Frequently Asked Questions

How do insurance, indemnity, and risk transfer considerations affect construction defect litigation?

Insurance considerations significantly influence construction defect litigation in California. They may play a role in how claims are funded, defended, and resolved. Risk transfer, such as indemnity, is also paramount. Through contractual indemnity and insurance, the risk to the contractor is borne by the parties responsible for damages.

What are the types of insurance relevant to construction defect claims?

Commercial General Liability (CGL) Policies: Most contractors carry CGL policies, which cover “property damage” or “bodily injury” arising from an “occurrence” (e.g., an accident or defective work). These policies often fund defense and indemnity in defect litigation. Errors and Omissions (E&O) Insurance: Covers architects, engineers, or designers for design-related defects, though coverage is narrower than CGL. Wrap Policies: Common in large projects, these policies cover all parties (developers, contractors, subcontractors) under a single policy, streamlining claims but complicating liability allocation. Builder's Risk Insurance: Covers damage during construction, but typically excludes defects that occur after completion.

What kind of events trigger coverage in a construction case?

CGL policies cover defects only if they result from an “occurrence” causing “property damage” or “bodily injury” during the policy period. California courts have interpreted defective work itself as not an occurrence, but resulting damage (e.g., water damage from a leaky roof) is usually included in coverage.

What do I do if I am served with a lawsuit?

Call Your Insurance Broker or Carrier. - Notify your insurance carrier immediately when you receive a lawsuit or a CSLB complaint to avoid coverage denials for late notice. - Don't just assume that the claim/lawsuit is not covered.  Let the insurer investigate and advise you of the coverage under your policy. - Tender claims to the insurers of all potentially responsible parties (e.g., subcontractors) to spread liability. Retain experienced Construction Defect counsel to assist you with tendering claims and provide advice about the construction litigation and insurance issues. - An attorney can assess defenses (e.g., statute of limitations, causation disputes, homeowner negligence) and coordinate with insurers. - The attorney will file a response to the complaint to avoid a default judgment. - Choose counsel experienced in multi-party litigation, as defect cases often involve subcontractors, architects, or developers. Preserve Evidence and Document the Project. - Gather all project-related documents, including contracts, subcontracts, change orders, warranties, inspection reports, permits, and correspondence with the plaintiff or subcontractors.  Emails, text messages, and photos should also be preserved in the format that they existed when the work was completed (.jpg, Outlook, Google Mail, and the like.) - Evidence is critical to proving compliance with contract terms, building codes, or industry standards. Lost or destroyed evidence can weaken your case.

Need more answers?

Drop us a line or email and we will follow up immediately.

Contact Us