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What construction work qualifies as faulty?

On Behalf of | Apr 21, 2021 | Construction Law

Residents and businesses in the Austin area and other parts of Texas may want to learn more about construction work that is faulty and whether it may be covered by a liability policy. There may be a difference between which claims receive coverage and which claims do not, when it comes to faulty work. Know that a liability policy does not guarantee that the work will be high quality.

What is a faulty work claim?

Faulty claims usually arise when the client is not satisfied with the way you did the work. It may not meet the standards of the industry or was performed using the wrong tools, methods and/or machinery.

An example of faulty work

A client signs a contract that states the walls will have paint in a particular type of paint and color. The paint company employees proceed to paint the walls and get the job done. After the job is finished, the client realizes the walls are not the color specified and the type of paint is different. He sues the painting company for breach of contract. The paint company thinks their liability coverage applies to this claim.

A wake-up call

To his surprise, the claim is not covered. For faulty work to have coverage under a policy, it must meet the following requirements:

  • Cause bodily injury or property damage
  • An occurrence must take place
  • Liability policies do not guarantee that your work is right. A completion bond may stipulate this.

Was there bodily or property damage?

Lawsuits relating to construction law that have a base only on a breach of contract do not receive coverage from liability claims. The claim receives coverage if no exclusions apply to it.

Faulty work may include using the wrong type of materials, such as the wrong mortar in a wall, and it collapses. Contractors may receive coverage, in some cases, by purchasing Contractors Errors and Omissions coverage, in the event of faulty work.

If you are part of the construction industry and are fighting a faulty construction claim or other issues, it may be wise to consult an attorney with experience in construction law.