Does Remodeling Fall Under California’S Construction Defect Law?

California’s Civil Code §§ 895, also known as the Right to Repair Act or SB800, was implemented in 2003 to govern construction defect claims. The Act applies to new residential construction and does not apply to commercial construction, condominium conversions, remodels, additions, or other construction improvements that are less than a complete new home construction. The California Supreme Court confirmed that the Act applies broadly, ensuring that defects can be remedied with a repair.

The Act defines what constitutes a construction defect in California by stating that the potential for unknown defects is a significant factor in building or remodeling a home. Under the strict liability doctrine, construction defect plaintiffs may recover damages without having to prove breach of duty. They need only show that the defects were caused by the builder.

The California Business and Profession Code describes contract requirements in Section 7159, which includes repairs, remodeling, or modifying a property. Construction defects can affect any part of the building, stemming from initial construction, updates, renovation, and other projects. The purpose behind SB800 is to eliminate frivolous lawsuits for construction defects that can easily be remedied with a repair.

In summary, the Right to Repair Act (SB800) is a crucial law in California that protects homeowners from construction defects. It establishes a prelitigation dispute resolution process that allows builders to notice and cure defects while granting them the opportunity to repair them.

How long is a home builder responsible for defects in California?

California Business and Professions Code section 7150 permits individuals to submit a claim against their contractor up to 10 years after the substantial completion of residential construction projects, even if they failed to file within the original 4-year period.

Is faulty workmanship an occurrence in California?

Defective workmanship that causes property damage to something other than the insured’s work product is generally covered, with a few exceptions. Most courts have held that defective workmanship, standing alone, results in damage solely to the insured’s completed work product, is not an accident and hence, not an “occurrence”. The Arkansas high court takes the opposite position, stating that faulty workmanship is not an accident but a foreseeable occurrence, and performance bonds exist in the marketplace to insure the contractor against claims for the cost of repair or replacement of faulty work.

State and federal courts are divided on the question of faulty workmanship being an occurrence. Montana generally agrees that faulty workmanship is an occurrence, as seen in cases like “Revelations Industry v St. Paul Fire and Marine” and “Portal Pipeline Co. v Stonewall Ins. Co”. However, a recent lower court decision, “King v State Farm”, held “no occurrence”.

If the contractor’s work qualifies as an “occurrence” because such outcome was not the plan, design, or intent, the “Your work” exclusion within the CGL policy can lead to coverage exclusions. This exclusion also contains the “subcontractor exception”, which does not apply if the damaged work or work out of which the damage arises was performed on the insured’s behalf by a subcontractor.

To ensure coverage, it is important to carefully review how a claim is presented to the insurer and avoid using either of these exclusion endorsements.

Does SB 800 apply to remodels?

The legislation pertains to all new residential construction, encompassing both detached and attached dwellings. However, it does not extend to remodeling contracts or condominium conversions.

What is the contractor’s liability for defects?

The Defects Liability Period safeguards contractors from potential liability if the principal hires another to rectify faults, allowing the original contractor to return and complete the work. This prevents the principal from invalidating the contractor’s warranties, which can occur if a third party is hired. The duration of the Defects Liability Period varies based on the project’s complexity, typically six to twelve months in JCT contracts, but can extend up to two years.

Are contractors will be held responsible in case of faulty construction?

Defects in construction projects can be held accountable by various groups, including contractors, subcontractors, architects, and designers. Contractors and subcontractors are responsible for the construction process, while architects and designers can be held responsible for specific circumstances. The source of defects can be identified by looking for the defect’s source, which can be identified as either design or construction process defects. To avoid being blamed for a construction defect, it is essential to seek professional help.

How long is a contractor liable for remodel work in California?

California civil law allows contractors to be liable for a minimum standard of construction for 10 years after building, even if the house is sold to new owners. Certain defects can only be claimed 1 or 4 years after completion, and water damage is covered for up to 10 years. Claims must be presented to the builder before advancing to court. There is no distinction between buildings built for individual owners and those built on spec.

What is the design defect law in California?

California law defines a product as defective in design if it fails to perform as safely as expected or if the benefits of the design do not outweigh the inherent danger. These tests are not mutually exclusive and can apply in a given case and be presented to the jury. In either case, California law imposes strict liability for a design defect, requiring only that the defect caused injuries when the product was used or misused in a reasonably foreseeable manner.

What does SB800 cover?

SB800 is a law aimed at addressing construction defects in newly built residential properties. It sets standards for construction quality, outlines procedures for addressing defects, and provides homeowners with recourse. SB800 is an exception to the Economic Loss Rule, which states that plaintiffs cannot pursue litigation for defects without actual property damage or mandatory out-of-pocket expense.

It expands the definition of “construction defects” to include those that only amount to pure economic loss without causing damage. SB800 aims to streamline the resolution process and protect homeowners and builders.

What is the construction defect law in California?

A breach of contract occurs when a party fails to fulfill the terms of a construction contract, often resulting in delays or additional costs. Negligence claims must show that the builder did not meet professional standards or building code requirements, and it doesn’t have to be intentional. Breach of implied or express warranties, including the California New Home Warranty, is another common cause of construction defect cases. The builder is strictly liable for any construction defects in a residential home, even if the work was performed by a subcontractor.

They are also liable for damages, costs, and fees relating to the defects, including property damage. Statutory violations occur when the builder fails to follow local and state statutes regarding the construction of the new home. These causes of action can be filed against the homebuilder, contractors, or other entities liable for the construction defects present.

Does SB 1162 apply to contractors?

The SB 1162 law mandates employers with 100 or more labor contractors to submit a separate pay data report for them. To comply, employers can use Trusaic’s GPDR solution for applicability determination, deadline management, and expert legal guidance. The solution provides accurate assessments of applicability, project timelines, notifications, and reminders to meet jurisdictional deadlines. It also offers expert legal support from pay equity attorneys to help employers understand their compliance requirements in California and the data collection and reporting needed.

What is an example of a construction defect?

Construction defects can result from errors or problems in the construction itself, leading to major issues during construction and later use. Examples include electrical problems, cracks in the foundation, leaky plumbing, sagging floors, leaky roofs, and crooked doors. If a newly constructed project has a construction issue, contact a construction law firm to learn about your rights.

Code violations can also lead to construction defect claims, as they may result in serious safety issues. Code enforcement authorities may cite the property owner, levy fines, or condemn the building until the code issues are fixed. If you believe a contractor or repair person’s work was not up to code, you may have a legal claim.

Henke and Williams’ experienced lawyers can assist with construction law claims in the Houston area, working with clients from all parts of the construction industry. They customize advice to each client’s individual situation, and can be reached at 713-940-4500 or through their convenient Contact Form.