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Construction defects force builder to make $43.2 million repairs

During the housing bubble in 2008, hundreds of thousands of homes were hastily constructed across the nation to meet the demand. Unfortunately, some of these homes were not built properly and may be violating constriction codes. Everything from defective building materials to cost-cutting measures to the employment of unskilled labor could be to blame for these violations; but as readers of our blog know, these violations could become huge problems for homeowners down the road.

Residents here in Michigan are seeing this scenario play out with one particular builder in Florida this month. The company, KB Home, estimates that it will have to shell out $43.2 million to repair more than 1,000 Florida homes because of construction defects. The company has also included in that cost any future repairs that will need to be made to its properties in the future.

The issue likely stems from the scenario we mentioned above. KB homes says that 1,140 homes that were constructed between 2003 and 2009 need substantial repair because of serious construction defects. The company discovered water damage in the homes and linked it to defective framing, roofing, stucco, and sealant installment in the homes. Though the company says that it will be taking a profit loss this quarter because of the repairs, its owners probably know that these repairs are necessary now so as to avoid serious litigation in the future.

Although it’s unknown in this specific case whether some homeowners are holding KB Homes liable for the repairs, it’s worth pointing out to readers here in Michigan that the expensive repairs caused by construction defects can usually be covered by the builder. Due to the complexities of construction law, however, homeowners are urged to talk to a skilled attorney about their case before filing any claims so as to ensure the best outcome possible down the road.

Source: Builderonline.com, "KB Home Estimates Defect Repairs to Cost $43.2 Million," Teresa Burney, Aug. 21, 2013

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