While some industries have come to a complete halt during the COVID-19 pandemic, there has been an uptick in the construction industry, especially in affordable housing and single-family construction, due to the low interest rates. In an article published in Law360 on October 20, 2020, James Prichard and Megan Picataggio discuss how the surge in construction has also escalated construction defect litigation. The authors also share ways to mitigate this risk.
“Simply put, surges in demand cause developers, homebuilders and general contractors to modify means and methods to keep up and stay profitable and, ultimately, this results in an explosion of construction defect claims,” write Prichard and Picataggio. “In high demand economic boom times like the present, construction defects and the resulting litigation can be anticipated and developers and contractors need to be prepared for such exposure.”
To help mitigate risk, Prichard and Picataggio explain, “one avenue to mitigate the risk of construction defect litigation is effective construction administration. Potential risks and liabilities should be evaluated and transferred where appropriate. This begins with the preparation of the contract documents and ends with thoughtful preservation of project records. Developers and contractors should properly document all communications, including all verbal agreements, and memorialize all in writing.”
To read the article in full, click here.
