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Accepting a construction defect settlement bars future claims

On Behalf of | Nov 14, 2022 | Construction Litigation |

Construction on residential or commercial property in Georgia is a complex matter with many aspects that might not work out as planned. If there are problems that cannot be solved through discussion and agreement between the owner and the construction company, it might need to be litigated.

One concern that frequently arises is if there is a construction defect. Owners must be aware of issues beyond complaining about defects and getting them repaired; they must also be aware of the consequences of accepting a settlement offer from the contractor.

What to know about construction defects and a settlement offer

If there is a construction defect, the contractor makes an offer to repair it and the owner accepts, the owner cannot file for litigation based on that same defect. If the defect is repaired, this is not an issue, but if problems come up where the owner needs to bring action, they will not be able to under the law.

For example, if the contractor finds a mold problem and an agreement to repair it is made, the owner cannot file a lawsuit if they find the same defect after the fact. However, there will be terms in the agreement to repair it. It is important to know whether the contractor followed the terms as this could be the justification to file a lawsuit to recover damages. The owner might also be able to file notice of the defect and restart the process for a settlement to be reached to rectify the problem.

For construction litigation, having qualified advice is key

Even experienced property owners who have a history of commercial and residential development make mistakes when they are dealing with contractors and needing repairs. It can be even harder for people who have just purchased a property and are unaware of how the law limits their options when they are complaining about defects.

To ensure that the property is repaired and construction companies are accountable for missteps they might have made, it is wise to have a firm grasp on the law and what it entails. Since it can be complex, it is imperative to consult with qualified professionals who specialize in construction litigation. This protects and guides about which steps are available.