Construction & Construction Defect Claims

Construction & Construction Defect Claims

A “construction defect”, as defined by the International Risk Management Institute (IRMI), is “a deficiency in the design or construction of a building or structure resulting from a failure to design or construct in a reasonably workmanlike manner, and/or in accordance with a buyer’s reasonable expectation.”

These defects generally are divided into two categories – dangerous defects and passive defects. Dangerous defects cause physical injury or damage to both people and property. Passive defects “cause harm to the property owner in the form of loss of use, diminution in value and extra expenses incurred while defects are corrected,” according to the IRMI.

Preventing construction defect claims is the easiest way to avoid liability, but prevention is not always possible. That’s where Vector comes in. We know it is important that adjusters act quickly upon receipt of a new construction defect claim. A rapid response is necessary in order to limit exposure and ensure the most efficient expenditure of defense costs.

Deficiencies in how a building is designed, built, operated or maintained, are the causes of construction defects. Everyone associated with the project, from general contractors to architects, electricians, and roofers, can be impacted by a construction defect claim. The toll on a company’s finances and its reputation can be distressing.

​Construction Defect Claims Services 

Some of the common construction defect claims we are assigned involve:

  • Quality of work issue
  • Code violations
  • Scope of work violations
  • Design deficiencies
  • Product or material insufficiencies
  • Operation & maintenance issues
  • Construction process failures
  • Catastrophic Failure

There is rarely obvious evidence of liability in construction defect claims, that’s why it’s absolutely crucial to have in-depth knowledge and understanding of all concepts to be investigated. The team at Vector are experts at gathering the information to ensure that liability can be quickly and appropriately determined. 

Vector Risk Solutions is here to investigate construction related losses and help ensure you are properly covered with any issues you may face. Let us lead you through any problems that may arise, and rest assured that you have the expertise of a well-seasoned team to make the path as smooth as possible. We strive to match the talent we have available with the demands and needs of the clients we serve, providing everyone involved with a superior claims experience.


What is Involved in the Investigation of a Construction Defect Claim?

In order to protect their clients from unnecessary expenses, Vector will employ a variety of tactics and methods in order to fully investigate the cause(s) of the defect. These may include:

  • Establishing whether the construction was completed according to contracted plans, specifications, materials and standards;
  • Examining all evidence pertaining to the project, such as construction documents, photographs, and drawings;
  • Engaging specialized experts to analyze the situation and provide opinions on liability;
  • Interviewing all parties involved in the project to establish facts pertinent to the claim.

We will also analyze the cost that will be required to mitigate the defect and damages that occurred, which involves:

  • Seeking quotes from reputable contractors or suppliers as to the cost of repairs;
  • Quantifying damages, including both economic losses and costs associated with repairing the defect;
  • Negotiating with all parties involved in order to reduce the overall costs of mitigating the defect.

For more information and any questions, contact

Construction Defect Claims FAQ

A construction defect is a deficiency in the design or construction of a building, structure, or home that results from failure to design or construct in a reasonably workmanlike manner and/or according to reasonable expectations. Construction defects can include quality of work issues, code violations, scope of work violations, design deficiencies, product or material insufficiencies, operation and maintenance issues, as well as catastrophic failure.

An example of a construction defect would be if a contractor fails to install insulation properly, resulting in extreme energy costs and discomfort for the homeowner.

The main types of construction defects are dangerous defects, which can cause physical injury or damage to people and property, and passive defects, which can result in a loss of use, diminution in value and extra expenses incurred while the defect is being corrected.

The best way to prevent construction defect claims is to make sure that all contractors, architects, and engineers are properly trained to meet the requirements of the project and ensure that all work is completed in a workmanlike manner. Additionally, it is important to stay up-to-date on codes and regulations for any area where construction is taking place, as well as obtain necessary building permits before starting construction. Finally, proper documentation of all phases of the project should be maintained.

Vector Risk Solutions provides comprehensive services related to construction defect claims. Our team of experts is here to help investigate any losses associated with potential construction defects and provide our clients with insight into their coverage options. We work with our clients to determine the best course of action and provide superior claims services. Our goal is to ensure that you are properly covered and supported during this difficult time.