Contracts are usually between the homeowner and developer; the homeowner and contractor or subcontractor, suppliers of the contractor, architects and engineers or anyone involved in the building of the home. Lawsuits are usually in regard to fixing the issue or receiving money for the damages. According to FindLaw, finding the person responsible for the defect is the goal.
Often the claims revolve around: Negligence; breach of contract; breach of warranty; strict liability and, in some cases, fraud or misrepresentation through negligence. The law requires that contractors use “reasonable care” when doing construction. Sometimes contractors do not have the necessary knowledge to do the work.
Real estate owners can sue the builder/developer for not fulfilling the contract. Not following documentation or escrow instructions can result in a breach of contract. If a builder made an effort to complete a home, the homeowner might need to pay the contract price minus the reduced market value of the home which was caused by the error.
In some cases, fraud is present. This means that the developer intentionally misrepresented what the quality of construction was to be. “Scratch-proof” flooring that easily scratches is misrepresentation; the developer would have had no intention of following the design plans and specs that were promised.
If damage or injury was caused by a construction defect, it is time to consult with an attorney who handles construction litigation. Problems with construction can often be avoided by getting legal advice at the beginning of a project, especially when permits are required. Extensive knowledge of construction law can help.