Kentucky’s construction industry continues to boom, creating many opportunities for subcontractors across Louisville and beyond. While this growth brings welcome business, it also increases your risk of problems like construction defect claims.
When a client claims your work failed to meet standards, how you respond in those critical first days can significantly impact the outcome.
Document everything
When someone claims your work is defective, grab your camera and notebook immediately. Take clear photos of the alleged problem from multiple angles with good lighting.
Additionally, make a written record of the complaint and when you first heard it. List everyone involved in the disputed work as well. Keep all project emails, text messages and notes from meetings. These records will become your best defense if the issue reaches litigation.
Contact your insurance provider
Your liability insurance exists for situations exactly like this. Call your insurance representative right away, even if you believe the claim lacks merit. Remember that delayed notification to your insurer might jeopardize your coverage.
Ask your insurer specific questions about your coverage limits and what steps the insurance company requires from you.
Inspect the site yourself
Go back to the project site to see the alleged defect with your own eyes. Additionally, bring a trusted coworker who can give you a second opinion. Check if the current conditions match your original plans. Look for signs that weather, use or another contractor’s work may have caused the problem.
Review your contract terms
Check your original contract and study it carefully for clauses related to disputes and defects. Many construction contracts specify timeframes for reporting problems and procedures for resolving disagreements.
In particular, look for language about force majeure cases and warranties you provided and their duration. Check if your contract requires mediation or arbitration before lawsuits can proceed. Understanding your contractual obligations and rights gives you a stronger position when responding to claims.
Consider your response options
Depending on the claim’s validity and your contract terms, there are several potential paths forward to address the situation:
- Fix legitimate problems quickly, if possible
- Suggest mediation before things escalate
- Get expert opinions to back up your position
Talking to an experienced construction attorney about your options is also wise. Aside from helping you build a strong defense, they may offer insight to help you choose which option fits your situation best.
Protecting your business starts now
When facing a construction defect claim, you need to act quickly and decisively to protect your business. Quick responses show you take the matter seriously and can help save business relationships even during disputes. Taking action now protects your finances and your reputation in the industry.