## Construction defect claims in North Carolina Construction defects are problems with workmanship, materials, or design that cause damage to a building or render it unfit for its purpose. North Carolina homeowners + commercial-building owners have multiple legal theories — but tight deadlines and pre-suit procedures matter. ## Common construction defects **Water intrusion (most common):** - Leaking roofs - Window / door leaks - Foundation water - Plumbing failures - Stucco / siding moisture - Inadequate flashing - Drainage failures **Structural defects:** - Foundation problems - Settling / cracking - Inadequate framing - Roof structural issues - Soils / drainage issues - Code violations **Mechanical / electrical:** - HVAC failures - Electrical hazards - Plumbing failures - Inadequate insulation - Fire-suppression issues **Cosmetic / functional:** - Cracked drywall - Floor / tile issues - Cabinet / counter problems - Paint / finish problems **Materials:** - Defective EIFS / stucco - Defective siding (e.g., LP, masonite) - Defective windows - Defective roofing - Chinese drywall (notable past issue) - Defective plumbing fittings **Design defects:** - Inadequate plans - Code violations in design - Improper specifications - Architect / engineer errors ## Legal theories **1. Breach of contract:** - Construction contract not performed - Specific terms breached - Standard contract law **2. Breach of warranty:** - **Express warranties** — written promises - **Implied warranty of habitability** (most states) - **Implied warranty of workmanlike performance** - **Implied warranty of fitness** - **UCC warranties** for materials - **${s.name}-specific warranties** **3. Negligence:** - Failure to meet standard of care - Industry standards - Code requirements - Independent of contract **4. Strict liability:** - Mass-produced housing in some states - Defective products - Limited applicability **5. Fraud / misrepresentation:** - False representations - Concealment of defects - ${s.name} consumer-protection laws **6. Negligent misrepresentation:** - Inaccurate plans - Misleading specifications - Inadequate disclosure ## Statutes of repose — the deadline **${s.name} statute of repose:** - Typically 6-15 years from "substantial completion" - Absolute deadline (regardless of when defect discovered) - Different from statute of limitations - Cannot be extended by discovery - Some exceptions for fraud / latent defects **Compare to statute of limitations:** - Limitations runs from discovery (typically) - Repose runs from completion - Repose is harder cap - Both must be met **Critical:** - Even if defect discovered after repose period, claim barred - Builders rely on repose for finality - Some states have separate periods for construction vs design - ${s.name} should be researched specifically ## Pre-suit notice requirements **Many states require notice before suit:** - Right-to-Repair Acts - Specific notice contents - Specific time period for response - Specific opportunity to cure - Failure = case dismissed / delayed **${s.name} requirements vary:** - Some states have detailed pre-suit procedures - Some states have minimal requirements - Often defendant-friendly - Plaintiff must comply meticulously **Common pre-suit elements:** - Written notice of defects - Detailed description - Inspection opportunity - Builder's right to repair - Mediation / arbitration first - Settlement offers - Document everything ## Identifying responsible parties **Multiple potential defendants:** - **General contractor** (overall responsibility) - **Subcontractors** (specific work) - **Architects / engineers** (design) - **Materials suppliers** (defective products) - **Developer / builder** (sold to consumer) - **Real-estate agent** (failed disclosures) - **Insurance carrier** (coverage disputes) - **Homeowners' association** (some defects) **Joint + several liability:** - Different states' rules - Apportionment of fault - Cross-claims among defendants - Insurance coverage disputes ## Damages **Recovery typically includes:** - Cost of repair - Diminution in value - Engineering / expert costs - Temporary housing (if uninhabitable) - Storage / moving expenses - Lost rental income (rentals) - Mental anguish (some states) - Stigma damage (some states) - Punitive damages (egregious cases) - Attorney's fees (where authorized) **Cost of repair vs diminution:** - Generally lesser of two - Some states allow either - Repair usually better for owner-occupants - Diminution sometimes for major defects ## Insurance considerations **Builder's insurance:** - General liability typically excludes own work defects ("your work" exclusion) - BUT damage to other property covered - Coverage often disputed - Specific endorsements vary - Often complex coverage analysis **Homeowner's insurance:** - Generally excludes faulty workmanship - May cover ensuing damage - Wind/storm coverage may apply - Mold / water-damage exclusions **Title insurance:** - Generally doesn't cover defects - Limited applicability **HOA insurance:** - Common-element coverage - Owner-association disputes ## Critical evidence **Document defects immediately:** - Photographs (lots) - Video walkthroughs - Specific measurements - Locations + extent - Timing of discovery **Preserve materials:** - Don't repair defective materials - Save samples for testing - Save failed components - Send notice before repair **Communications:** - All builder correspondence - Construction documents - Plans + specifications - Change orders - Inspection records - Permits - Warranty documents - HOA records (if applicable) **Expert involvement:** - Construction defect attorney early - Forensic engineer / inspector - Cost estimator / contractor - Industry experts ## Common defenses **1. Statute of repose** — barred **2. Statute of limitations** — barred **3. Lack of pre-suit notice** — dismissal/delay **4. Builder's right to repair** — opportunity not given **5. Owner negligence** — failure to maintain **6. Wear + tear / normal aging** **7. Subsequent owner alteration** **8. Acts of god / weather** — extreme weather **9. Lack of damages** — cosmetic only **10. Comparative negligence** **11. Disclaimer / waiver in contract** **12. As-is purchase** ## Class actions **When multiple homes share defects:** - Subdivision-wide defects - Common materials (Chinese drywall, etc.) - Same builder / developer - Class certification possible - Different rules + standards ## Strategic considerations **Timing:** - File before statute of repose - Comply with pre-suit notice - Don't delay after discovery - Document timing of discovery **Settlement leverage:** - Builder's reputation concern - Insurance coverage dynamics - Repair feasibility - Continuing damage potential - Subsequent buyer disclosures **Cost-benefit:** - Defect amount vs litigation cost - Construction defect cases expensive - Multiple experts needed - Multiple defendants typically - $10K-$100K+ litigation costs common ## Subsequent purchasers **Buyers of older homes:** - Statute of repose runs from completion (not purchase) - Limited claims against original builder - Stronger claims against seller for non-disclosure - Inspection contingency critical - Disclosure requirements vary ## What you should do If you have construction defects in North Carolina: act quickly — statutes of repose are unforgiving. Hire a construction defect attorney + qualified forensic inspector. Send pre-suit notices per North Carolina requirements. Document everything. Most North Carolina construction defect attorneys work on contingency or hourly. Inspections often $500-$5,000; full litigation tens of thousands. --- *This guide is general information about North Carolina law as of mid-2026 and is not legal advice. Construction defect cases are technical + time-sensitive. Talk to a licensed North Carolina construction-defect attorney about your specific situation.*