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Key points about construction companies’ offer to address defects

On Behalf of | Sep 7, 2022 | Construction Law News

Colorado construction companies and contractors strive to complete projects to customer satisfaction. This is true whether it is a residential or commercial job. However, issues are inevitable and there are situations where the property owner will complain about construction defects.

It is essential for companies to be aware of the law for a notice of claim regarding a construction defect. Allegations of shoddy work, insufficient materials, outright errors and dangerous problems can place a construction company in a negative light and cost them financially and in their community reputation. It is key to know how to address these challenges.

What happens after a construction company makes an offer of repair?

When a claimant asserts there are construction defects, the construction professional and contractors will conduct an inspection to assess it. Once that is complete, they will be given between 30 and 45 days—depending on the type of property it is—to decide whether to settle the case.

This can be done by repairing the defect or making a financial settlement offer. The claimant is not required to accept any offer, but if they do, it must be in writing within 15 days. Failure to do so will be perceived as a rejection.

If the offer is accepted, the financial settlement will be paid according to the offer that was made. For repairs, the work must be done according to a timetable that was detailed in the offer. There can be delays that do not violate the agreement provided they occur due to factors that the construction professional and contractors cannot control. Examples are the weather and problems getting the necessary materials.

It is not legally required to make an offer if the construction professional does not find anything amiss with the work. If the claimant does reject the offer, they can file a legal claim to be compensated.

It is also possible to use mediation to try and settle the dispute. This must be done via contract and will happen before action is brought. The construction professional is expected to follow the details of the offer to fix or pay for the defect. If they do not, a claim can be filed for that too.

Addressing construction defects should be handled according to the law

Often, construction companies have longstanding relationships with specific clients. Allegations of defects can damage these relationships and cause even more extensive problems than a simple disagreement over the outcome of the project.

In these situations, it is imperative to understand construction law regarding defects and seeking to remedy them. Consulting with a diverse firm that understands multiple aspects of the law can be helpful in reaching viable solutions.