July 27, 2001 - Cutting corners always seems to catch up with you.
Think of the uproar surrounding every instance of poisoning from undercooked food.
Consider the dire consequences of sloppy legal representation. Remember the dozens
of hidden camera investigations that caught service providers slacking on the
job.
Then consider this: If it can happen there, it can happen at your house. A study
reported by the California Department of Real Estate estimates that one-third
of new residential and commercial construction has a significant structural defect.
"The problem is, the developer accepts the lowest bid from the contractor,"
said Thomas Miller, co-author of "Home and Condo Defects: A Consumer Guide
to Faulty Construction." "You get what you pay for. They're not going
to give you the quality and the materials and the supervision that you would expect
in your home."
Miller should know. He is the majority owner of The Miller Law Firm in Newport
Beach, Calif.; his daughter Rachel is the only partner. Together, they have built
up a practice based on helping homeowners whose homes didn't live up to their
expectations.
Miller said low construction bids are one root of the problem. The lowest responsible
bidder--one who makes an accurate assessment of costs--might be undercut by a
lower bid that's designed to get the job at any cost. Miller said the low bidder
will then cut corners to try to make a profit on the job.
In one case, a builder saved money by using regular nails instead of galvanized
roofing nails on the roofs of a subdivision. The nails rusted, the roofs leaked,
the houses rotted and the developer was forced to pay millions to replace all
of the roofs.
Shortly after World War II, builders used aluminum wiring for electrical systems
and galvanized piping for plumbing and even natural gas lines. When the metals
corroded, homes burned down, natural gas leaked and sewage spilled.
It's difficult for home inspectors to spot defects in new homes, Miller said.
How can they check for leaks in the roof and water intrusion in the basement if
the house hasn't weathered at least a few rainy seasons?
"You have to go through three or four seasons to see how a home performs,"
said Rachel Miller, co-author of "Home and Condo Defects." Although
some builders give homeowners a warranty detailing what they will fix--with plenty
of exclusions--this does not limit their liability.
"The only defense the builder has is time," Rachel Miller said of construction
defects. In Oregon, homeowners have to take the builder to court within 10 years
of substantial completion of the home and two years from the date they discover
the defect.
That means homeowners can, in some cases, force the builder to fix their house
years after they move in if the problem is related to faulty workmanship. The
Millers specialize in construction defects and most of their clients have lived
in their homes more than five years.
"Some homeowners believe their time is up, but just because the builder's
warranty has expired doesn't limit their [homeowner's] rights," Thomas Miller
said.
Many homeowners erroneously believe that their insurance policy will protect them
if their roof springs a leak. But in the last 10 years, Thomas Miller said, insurance
policies have gradually excluded coverage of faulty construction or materials.
"All you end up with is a fire policy," he said. Recently, insurers
have excluded "sick building syndrome" and other environmental claims.
So how can consumers protect themselves from faulty construction? One option is
constant supervision of laborers and more than a dozen subcontractors who work
on each home.
"It's almost impossible [to ensure quality by yourself] unless you have construction
experience yourself and go there while the home is being built," Thomas Miller
said. He suggests asking a skilled contractor to check the home before it's drywalled
and painted--affording a view of the "guts" of the home.
For people who live in a subdivision that includes houses built by the same general
contractor and subcontractors, the Millers suggest speaking with neighbors about
past problems with their houses. They also recommend working together if they
have to sue a builder.
"It's generally smarter for a group of people to get together because these
cases become very expensive to investigate," Thomas Miller said.
Liability for home defects is spread among the builder, the seller and the inspector.
The seller is required to disclose defects a reasonable person would find, as
well as facts that would affect the value of the home. But a seller's failure
to disclose a defect doesn't absolve the builder of his or her liability, Miller
said.
Inspectors can find leaks and cracks, but homeowners might save themselves the
price of an inspection by noticing water stains on the ceiling or around the windows--evidence
of leaks.
Miller said inspectors include a lot of disclaimers in their contracts, such as
pointing out that they did not look under the carpet or behind counters for leaks.
He advises homeowners to check that the inspector has liability insurance and
check the contract for an abundance of exclusions.
"If they don't meet your standards, there's nothing that says you have to
hire an inspector," Miller said. A good, licensed general contractor or an
architect could also provide an inspection.
"Homeowners are educating themselves more these days when they go to buy
a home," Rachel Miller added. "People go on the web, because there are
so many resources there, and they're more aware of the issues. The big issue now
is mold with water intrusion. A lot of people are calling us because they're sick
or their kids are getting sick."
© Copyright 2010 The Miller Law Firm. All rights Reserved.
If you experience problems or have questions, contact us at Info@ConstructionDefects.com.
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