There are two common reasons construction defect claims are unjustly filed; the homeowner was unaware of the project expectation or the homeowner does not want to or is unable to pay. As a contractor, you must manage the customer’s expectations of the project, such as explaining limitations or potential problems, to reduce future surprises and limit potential construction defect claims. When the homeowner or customer runs out of money or doesn’t want to pay, filing a defect claim is often used as a method of escaping payment. At MNCLS, we help contractors navigate this process and receive compensation.
When the defect claim is justified and the work was performed by a subcontractor, MNCLS makes certain the sub that performed the work is held accountable for the cost of repairing it.
Yes, your insurance company needs to be involved in the process from the beginning otherwise you risk denial of a claim later on.
Yes. If the project was residential built by a licensed contractor, the process defined in the warranty statute, Minn. Stat. Sec. 327A must be followed. For projects that are not covered by the warranty statute, the nature of the claim will dictate the process by which the claim will be investigated, validated, and resolved. MNCLS is very experienced with these processes and will work to ensure an efficient and economical resolution of the problem.
Maybe. Your insurance company will determine early on whether it will provide the defense for the claim. MNCLS lawyers will step aside, work with your insurer, or take total control of the process depending on what your insurer decides. Our goal is the best resolution for our clients.
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