Emerging Patterns in Construction Defect Litigation: Survey of Construction Cases

Abstract

Across the United States, increased development has led to an increase in construction defect litigation, particularly for multifamily for-sale projects. This research consists of a survey of recent construction defect cases. Cases were analyzed for reoccurring defects to identify what defect items are commonly cited to help owners, architects, engineers, and contractors manage risk. The construction projects reviewed are located largely in the Denver metro area with additional projects in Wyoming, Texas, and Nevada. The data set includes 41 construction defect cases litigated during 2015, 2016, and 2017. During analysis of such cases, cited defects were categorized as one of 55 issues. A significant finding is identifying the 10 most commonly cited construction defects and observing that they each occur in over half of all litigation cases analyzed. Another important finding is that the commonly cited defects generally relate to keeping water out of or flowing away from the building. The contribution of this research is to provide information that will help to reduce future construction defect litigation by identifying reoccurring defects that can be addressed during design and construction on future projects.