Texas Construction Defect Attorneys

Some minor cracks and cosmetic issues are normal in new construction, but certain problems indicate serious defects requiring professional evaluation. Foundation cracks wider than hairline fractures, water intrusion, structural movement, and code violations typically require investigation. We recommend having engineers or qualified inspectors evaluate problems before dismissing them as “normal settling.” Documentation early prevents disputes about when problems started.

Most construction contracts include express warranties that work will be performed in a workmanlike manner using appropriate materials and will meet contract specifications. Texas law also implies certain warranties about quality and fitness even when contracts don’t explicitly state them. However, warranties have time limits and exclusions. We review your contract to determine what warranty coverage applies to your defects.

Texas statutes of limitation for construction defect claims vary depending on the legal theory. Breach of contract claims generally must be filed within four years. Negligence claims typically must be filed within two years. Some statutes limit claims against builders or contractors to specific time periods after project completion. Early consultation with an attorney ensures you don’t miss deadlines that bar your claims.

Construction defects involve poor workmanship, defective materials, or failure to meet contract specifications. Construction delays involve contractors failing to complete work on time. Both can support legal claims, but they involve different damages. Defect claims seek repair costs and compensation for damage. Delay claims seek compensation for losses caused by late completion. Some disputes involve both defects and delays.

Many construction contracts include provisions requiring owners to give contractors notice and an opportunity to repair defects before filing lawsuits. Texas law may also require pre-suit notice for certain residential construction claims. Failing to follow notice requirements can affect your ability to recover damages. We ensure you comply with contractual and statutory notice requirements before pursuing litigation.

Texas law allows property owners to withhold payment for defective or incomplete work under certain circumstances, but withholding payment incorrectly can result in mechanic’s liens against your property or lawsuits against you for breach of contract. Before withholding payment, consult an attorney to ensure you document defects properly and withhold only amounts reasonably related to correction costs.

Damages in construction defect cases may include the cost to repair defects, the difference between the value you were promised and what you received, damages to other property caused by defects, and in some cases attorneys’ fees if your contract allows fee recovery. Texas law generally does not allow recovery of purely economic losses beyond the structure itself unless specific legal requirements are met.

Fee structures vary depending on case complexity and the amount at stake. Some construction defect cases are handled on contingency fee arrangements where attorneys receive a percentage of recovery. Others are handled on hourly billing. Many construction contracts include fee-shifting provisions that require the losing party to pay the winning party’s attorneys’ fees. We discuss fee arrangements during initial consultations.

In general, Texas law does allow property owners to pursue claims against builders for construction defects, including defects in newly built homes. The legal basis for those claims can include breach of contract, breach of warranty, negligence, or violations of the Texas Deceptive Trade Practices Act, depending on the circumstances.

For new construction specifically, most builders provide express warranties and those warranty terms, along with any dispute resolution clauses in your purchase contract, will shape the process significantly. Many new home contracts include mandatory arbitration clauses, which means disputes may be resolved outside of court rather than through a lawsuit.

The RCLA also applies to new construction defect claims, so the pre-suit notice and inspection process described above is typically required before litigation can proceed.

If your new home has defects and you’re trying to understand your options, the starting point is usually your purchase contract and your builder’s warranty documentation those two documents define the landscape before anything else.

Documentation is the most useful first step. Before contacting the contractor, before making repairs, and before doing anything that might alter the condition of the defect, take thorough photographs and written notes of what you’ve observed including when you first noticed it and whether it’s getting worse. If there’s water intrusion, structural movement, or visible damage, document it in detail.

After documentation, a few things are worth doing in sequence. First, review any warranty documentation you received at closing or after construction was completed. Second, be cautious about making permanent repairs to the defective area before the cause has been identified in some situations, repairs can make it harder to establish what the original defect was and who was responsible for it. Third, if the defect is significant, having a licensed engineer or contractor who was not involved in the original construction assess the damage can help establish what happened and what it will cost to fix.

If you’re considering a legal claim, Texas law requires written notice to the contractor before filing suit. What you document in the early stages can matter a great deal to that process later.

Generally, standard homeowner’s insurance policies do not cover construction defects. Homeowner’s insurance is typically designed to cover sudden and accidental losses like fire, storm damage, or certain types of water damage rather than defects that result from faulty workmanship, improper materials, or code violations during construction.

That said, the answer isn’t always straightforward. If a construction defect leads to consequential damage  for example, a roof defect that causes water intrusion that damages interior walls and flooring your policy may cover some of the resulting damage even if it excludes the underlying defect itself. Whether that distinction applies, and to what extent, depends on your specific policy language and the nature of the damage.

The more relevant insurance in a construction defect situation is usually the contractor’s general liability policy. Most licensed contractors carry general liability coverage, and that policy is typically what responds to claims involving property damage caused by faulty construction work. Understanding what coverage exists, and who the carrier is, is often a useful early step in assessing how a claim might be resolved.

Possibly, and there are a few avenues worth understanding. The answer depends largely on what the contractor had in place before going out of business.

If the contractor carried general liability insurance at the time the work was performed, that policy may still be available to respond to a claim even if the contractor is no longer operating. Insurance coverage is tied to when the work was done, not whether the contractor is currently in business. Identifying the carrier and the policy period is an early step in evaluating this path.

If the contractor was licensed and bonded, as required for certain types of work under Texas law, the surety bond may provide a source of recovery. Surety bonds are specifically designed to provide recourse when a licensed contractor fails to fulfill their obligations, and bond claims have their own notice and filing procedures.

If the contractor operated as a business entity like an LLC or corporation that has since been dissolved, there may still be legal mechanisms to pursue a claim against the dissolved entity or its assets, depending on the circumstances.

None of these paths are simple, and the viability of each depends on the specific facts: what work was done, when, under what license, and with what coverage. But the fact that a contractor is no longer in business does not automatically close off every option.