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Is there a way to avoid construction litigation?

On Behalf of | Sep 26, 2022 | Real Estate Law |

During real estate transactions, one goal is to avoid litigation. This is particularly, true during a construction transaction because construction defects can destroy a building’s useful life. However, construction litigation can be avoided with inspections.


Beginning at inception, independent, neutral third-party inspectors should be utilized throughout the construction process. Some lenders actually require them before each payment. But, for those deals that do not, inspection approvals should be used. These contracts should also include exactly what the customer expects to avoid defects.

Design deficiencies

Designing the build is step one. This is often done prior to finding Los Angeles, California, financing. However, both the architect’s and engineer’s designs should be inspected. This can be done by another independent architect or engineer, or through an inspection company that specializes in reviewing these materials. Problems at this stage will impact every stage moving forward.

Subsurface deficiencies

Prior to building anything, the subsurface must be prepared. This will ensure proper drainage and a stable foundation. If the subsurface is not appropriately graded and prepared, even if the building is perfect, it could quickly deteriorate or never be usable. This is why inspections should be utilized throughout the subsurface preparation process.

Material deficiencies

Materials are purchased throughout the construction phase, but the exact materials should be included in the construction contract, including alternatives, brands or quality standards. Even the type of fan can be a vital choice. For example, if a warehouse has inadequate air flow, and as a result, is too hot, the property is unusable. If possible, prior to each purchase, the customer should grant approval, along with the advice of an experienced inspector to ensure that the materials used are not substandard.

Construction deficiencies

Finally, once construction begins, inspections should occur periodically and at every major stage of construction. This includes laying the foundation, instilling plumbing, electrical, fire safety equipment, drywall, etc. Ideally, inspector approval will be included in the construction contract as withholding funds can be the easiest and quickest way to get errors corrected. However, you may need a Los Angeles, California, lawyer if that contract is breached. A lawyer should be used to draft the construction contract upfront.