Integrity Law Group PLLC

How to Identify and Address Construction Defects Before They Become Costly Issues

Building your own home or moving into one that has just been built is very exciting. It is truly a blank canvas, and you can make it into whatever you envision. Unfortunately, not everything always goes according to plan in new builds. Construction defects may start to pop up, and they can greatly interfere with your vision for your home.

There are a number of construction defects that will not only dampen the dream you had for your new home, but that can also significantly damage the structure of it, as well. It is important to identify construction defects as soon as possible so you can take action right away and protect your home. Below, our Houston real estate lawyer outlines some of the most common defects, and your options after discovering them.

Structural Issues

Structural defects include cracks in floors, walls, and ceilings. Uneven or sagging floors, movement or settlement of the foundation, and other indications that the home’s structural integrity is compromised are also signs of construction defects.

Water Leaks

New homeowners should inspect for water infiltration or water leakage in areas such as windows, roofs, basements, walls, and doors. To spot water leaks, look for dampness, water stains, musty odors, and mold growth.

Issues With the Home Envelope

A home’s envelope consists of the windows, exterior walls, roof, and doors. These can contain defects that can compromise air sealing, insulation, or weatherproofing. Common issues include cracks, gaps, improper installation, and inadequate insulation.

HVAC System Problems

It is important to inspect the heating, ventilation, and air conditioning (HVAC) system for insufficient airflow, defective components, unusual noises, or inconsistent temperatures. Faulty or inefficient HVAC systems can impact the comfort of the occupants in the home and indoor air quality. The most common issue is that one room is extremely warm while the others are very cool. This is caused by an HVAC system that is not properly balanced.

Plumbing and Electrical Deficiencies

Assess the functionality of the plumbing and electrical systems in the home. Look for issues such as inadequate outlets, faulty wiring, defective fixtures or switches, leaks, low water pressure, and drainage problems.

Fire Safety Issues

Make sure that the proper fire safety systems, namely fire alarms, are in place and are functioning properly. All homes in Texas must also have at least one fire extinguisher and a carbon monoxide detector, so make sure these are in place, as well. If your home has a sprinkler system, also check it to ensure it is working properly.

Finish and Surface Defects

Closely inspect interior and exterior finishes for poor workmanship or defects. This can include cracked or uneven flooring, loose tiles, peeling paint, improperly installed or damaged siding, or other signs of inferior quality.

Safety Hazards

People do not often consider safety hazards in their homes, but shoddy workmanship, insufficient lighting, unstable handrails, and improperly secured equipment or fixtures are common hazards that can result in serious injury.

How to Address Construction Defects

After discovering a construction defect, it is critical that you address it as quickly as possible. Contractors, subcontractors, architects, and others responsible for building your home in a safe manner can be held responsible for construction defects. When addressing them, you have a number of options.

Mediation or Arbitration

The first thing to do is to review your construction contract. It may contain provisions regarding how to resolve your construction defect dispute. For example, many construction contracts stipulate that you must enter mediation or arbitration to resolve a construction defect dispute.

Filing a Lawsuit for Breach of Contract

If you file a lawsuit against a builder or developer, it will likely be based on a breach of contract. This essentially means that they failed to deliver the home that was initially promised to you. Purchasing a new home typically involves a great deal of paperwork. Any materials the builder or developer gave to you, such as photographs, descriptions of the home, drawings and plans, and emails outlining the wor,k can be helpful when establishing the home that was promised to you.

Before filing a lawsuit for breach of contract, it is important to speak to a Houston real estate lawyer. Under the statute of limitations in Texas, you have only four years from the date of completion to file a breach of contract lawsuit. If you do not file within this time, you will lose your right to file a lawsuit and collect any damages at all.

The law recognizes that not all construction defects are visible right away. As such, the discovery rule allows you to file a breach of contract lawsuit four years after you discovered or should have discovered the defect. Still, under the statute of repose, it is not possible to file a lawsuit for breach of contract at all ten years after completion.

Filing a Claim for Negligence

You can also file a lawsuit against a builder or developer based on negligence. If the builder or developer failed to exercise the proper care and adhere to the correct standard when designing or building your home, the legal theory of negligence may be more applicable. If you can show that your home was damaged by a defective or unsafe condition of the property, you have ten years after the property was substantially completed to file a lawsuit for negligence.

When filing a lawsuit based on negligence, you must prove certain elements of your case. A Houston real estate lawyer can explain what those elements are and knows the strategies to prove them.

Our Real Estate Lawyer in Houston Can Advise You of Your Legal Options

At Integrity Law Group, PLLC, our Houston real estate lawyer can further explain the legal options available to you after a construction defect and help you determine which one is right for you. We will then help you navigate the appropriate process and give you the best chance of a positive outcome. Call us today at (832) 280-8874 or fill out our online form to schedule a consultation with our experienced attorney and to learn more about how we can help with your case.

How to Handle Contractual Infringements by Your Business Partner

After forming a business partnership, the parties often draft a formal partnership agreement. The main purpose of a partnership agreement is to detail each party’s rights and responsibilities and outline what will happen if one party breaches the agreement. A breach of a contract agreement is very difficult for all parties. Below, our Houston business law attorney outlines the steps to take after a contractual infringement by your business partner.

What is Included in a Partnership Agreement?

Forming a business partnership is about so much more than simply doing business together. It is also about establishing a contractual business relationship. The priorities and preferences of the parties involved guide the particular terms of a partnership agreement. The majority of contracts between business partners answer the following questions:

  • Which party or parties have financially contributed to the partnership, and how much were those contributions worth?
  • Which party or parties have agreed to make continuing financial contributions?
  • Is the partnership a limited partnership, a general partnership, or another form of partnership?
  • What are the legal rights and obligations of each partner?
  • How much compensation will each partner receive?
  • How will an infringement of a partnership agreement be resolved?
  • What are each of the partners’ fiduciary duties to the partnership?
  • Who has the right to vote, the obligation to vote, and when?
  • How can someone become a partner?

A properly drafted agreement with well-defined terms makes all the difference when an infringement occurs. Our Houston business law attorney can draft an agreement that will limit disputes and outline how to resolve them if they arise.

Why Do Contractual Infringements Arise?

A contractual infringement in a business partnership can happen for a number of reasons. The most common of these include:

  • Missing or ambiguous terms: When a contract is not properly drafted, it can cause confusion between the parties about their legal rights and obligations under the agreement. Missing or ambiguous terms can cause disputes to arise between partners.
  • Using company funds improperly: Infringements can arise when a partner spends company funds unscrupulously or improperly. This can affect not only the partnership but also the relationships between the partners and other associates and the business as a whole.
  • Acting without authority: Any time a partner acts without authority, it can cause issues in the business. For example, one partner may become excited about a potential business deal and sign the business up for it without obtaining the appropriate permission from the other partners.
  • Failing to recognize or address conflicts of interest: Conflicts of interest can happen when one partner is presented with an opportunity in which they will personally benefit. This alone does not necessarily create a conflict of interest, but it can be a red flag. Partners who fail to address possible conflicts of interest can breach their ethical obligations to the business.

When any of the above contractual infringements occur, there are a number of ways to resolve them.

Filing a Claim for Breach of Contract

If your partner has acted outside of the terms of the partnership agreement, you or the business may have to file a lawsuit against your partner for breach of contract. A breach of contract action can include allegations that your partner acted in bad faith. 

Under Texas law, all business partners are required to act in good faith. Business partners owe a duty of care to the company. Depending on the specific issue, you may also have to file a claim for a breach of fiduciary duties against your business partner.

Negotiating a Settlement

Not all lawsuits will end up in the courtroom. You and your partner may be able to negotiate a settlement agreement. In most cases, settlements occur while a lawsuit is pending, but there are exceptions to this. During negotiations, the parties will define what happened and the possible remedy that may be appropriate. As part of a settlement, the partners involved typically agree to keep the settlement amount and other arrangements confidential.

Expelling the Infringing Partner from the Business

Depending on the specific circumstances and the terms of the partnership, it may be possible to remove the infringing partner from the business. The applicable law and the terms within the contract, such as a buy-sell agreement, may determine if this option is available to you.

Pursuing Damages

The best option for remediating harm sustained by the business may be to pursue damages from the infringing partner. Again, the terms of the partnership agreement and the applicable law may define the amount of damages that are available. A business law attorney can help you maximize the damages you can pursue.

What Happens if You and Your Partner Do Not Have a Formal Agreement?

It is always recommended that business partners draft an agreement in the event that a dispute arises. However, not all partners draft these contracts when forming a partnership. If this is the case for you, there are still possible options under the Texas Business Organizations Code if your business partner has acted improperly. 

The Code provides options if you have a partial or incomplete agreement. Under Section 152.211(a), you can move forward if your partner has violated any duties under the partnership. To understand what these are, it is important to work with a Houston business law attorney who can advise you or your legal options.

Our Business Law Attorney in Houston Can Help After a Contract Infringement

For business owners, there is nothing more important than protecting your business, your investments, and your business relationships. At Integrity Law Group, PLLC, our Houston business law attorney has the ability to draft an agreement for you that will help you accomplish all of these tasks. 

If your partner has already infringed on a contract, we can advise you of your legal options and the next steps to take, as well. Call us now at (832) 280-9197 or fill out our online form to schedule a consultation with our experienced attorney and learn more about how we can help.

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