Construction Defects Burning a Hole through the Residential Contractors Market
Cover Story • July 19, 2004
Whether real or imagined, the threat of construction defects litigation has burned through the residential contractors liability insurance market like a California wildfire. Over the past couple ...
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Subject: The other side of the issue...
Posted On: September 25, 2004, 8:59 pm CDT
Posted By: Mikki
Comment:
I am a homeowner on the other side of this issue.
I am located in Colorado and we have passed a statute known as the Colorado Construction Defect Action Reform, C.R.S.§13-20-80.
I understand the frustration of honest contractors who make a mistake and are willing to correct...and it is sad that so many class action suits are filed in this regard...but as a homeowner who had the "bad penny", I have been trying to understand the intent of this type of rule as I have attempted to work within the legal system since last April (2003) when a small independent General Contractor decided he would not follow plans, specifications, city codes, contractual agreements or my rights under the consumer protection act. When these items were brought to his attention, he claimed they were "not his fault" and he would charge to correct as an "extra" expense...try and figure that on compaction that didn't meet the Soils Engineer's recommendations or the footer that was undersized and hidden underground! In fact, the electrical was sabotaged because I disputed extra charges for items detailed on the plans and specifications.
I have spoken with the Attorney General's Office, the City Inspection and Licensing offices, our Department of Regulatory Agencies and our State Senators and all are sympathetic (and shocked) but none can offer any solutions for moving this issue to a conclusion.
The contractor's insurance carrier and the insurance carrier for the electrician have already advised both that they may NOT have coverage for their negligence in this matter, but they have continued to defend them and have successfully delayed my efforts to bring this issue to mediation, settlement or before a court of law for more than a year and a half (the defects were found in April and the complaint was filed a year ago).
With regards to the Consumer Protection Act violations, I understand there may be a possibility of filing criminal charges against these individuals with the District Attorney's Office when the civil case has been concluded since the contractor was paid for the majority of the contract (including work not done) and both the contractor and electrical subcontractor have filed false liens and the contractor has refused to provide any accounting documents.
Can someone please explain to me why, as a homeowner with that "one in a million bad contractor", I must play this legal game for as long as it takes and as much as it costs (by the way, not including my legal fees, it cost more than $60,000 to fix the negligent work).
I'd like to understand why the insurance carrier would put a homeowner through this process and how a consumer can get "just, speedy and inexpensive determination in every action" in keeping with Rule 1, C.R.C.P.
I'd like to hear from the contractor side...no sympathy, just an idea of how to make the system work...if that's even possible these days!
Thanks for listening...and I'd welcome any comments or suggestions to corknme@hotmail.com. If you would like to see more of the story, I already have two published stories on this matter...one in the local business journal and the other on our major TV station...but still no resolution...again..."it wasn't his fault"!
Mikki
corknme@hotmail.com
Subject: The other side of the issue...
I am located in Colorado and we have passed a statute known as the Colorado Construction Defect Action Reform, C.R.S.§13-20-80.
I understand the frustration of honest contractors who make a mistake and are willing to correct...and it is sad that so many class action suits are filed in this regard...but as a homeowner who had the "bad penny", I have been trying to understand the intent of this type of rule as I have attempted to work within the legal system since last April (2003) when a small independent General Contractor decided he would not follow plans, specifications, city codes, contractual agreements or my rights under the consumer protection act. When these items were brought to his attention, he claimed they were "not his fault" and he would charge to correct as an "extra" expense...try and figure that on compaction that didn't meet the Soils Engineer's recommendations or the footer that was undersized and hidden underground! In fact, the electrical was sabotaged because I disputed extra charges for items detailed on the plans and specifications.
I have spoken with the Attorney General's Office, the City Inspection and Licensing offices, our Department of Regulatory Agencies and our State Senators and all are sympathetic (and shocked) but none can offer any solutions for moving this issue to a conclusion.
The contractor's insurance carrier and the insurance carrier for the electrician have already advised both that they may NOT have coverage for their negligence in this matter, but they have continued to defend them and have successfully delayed my efforts to bring this issue to mediation, settlement or before a court of law for more than a year and a half (the defects were found in April and the complaint was filed a year ago).
With regards to the Consumer Protection Act violations, I understand there may be a possibility of filing criminal charges against these individuals with the District Attorney's Office when the civil case has been concluded since the contractor was paid for the majority of the contract (including work not done) and both the contractor and electrical subcontractor have filed false liens and the contractor has refused to provide any accounting documents.
Can someone please explain to me why, as a homeowner with that "one in a million bad contractor", I must play this legal game for as long as it takes and as much as it costs (by the way, not including my legal fees, it cost more than $60,000 to fix the negligent work).
I'd like to understand why the insurance carrier would put a homeowner through this process and how a consumer can get "just, speedy and inexpensive determination in every action" in keeping with Rule 1, C.R.C.P.
I'd like to hear from the contractor side...no sympathy, just an idea of how to make the system work...if that's even possible these days!
Thanks for listening...and I'd welcome any comments or suggestions to corknme@hotmail.com. If you would like to see more of the story, I already have two published stories on this matter...one in the local business journal and the other on our major TV station...but still no resolution...again..."it wasn't his fault"!
Mikki
corknme@hotmail.com