CAI-NJ Aug.2016

A U G U S T , 2 0 1 6

MANAGEMENT

TRENDS

ou’ve had construction work completed on your

property, but the work doesn’t appear to be correct.

What does this mean and, more importantly, what

should be done to remedy the work that is already there?

The term “construction defect” has a very all-encompass-

ing meaning and may concern multiple aspects of project

development. This can be from the planning to the design

to the construction of a project. Causes can emanate from

the use of faulty materials, workmanship, design flaws, or a

contractor not adhering to the plans or specifications.

The role of a property manager is important as they often

possess essential knowledge as to the details of the process

that had taken place. For that reason, careful record keeping

is essential, as a significant amount of time can evolve from

the time of construction until the defect is disclosed. Records

that are easy to reference may be crucial in determining the

outcome of potential disputes between the association and the

construction contractors. Attendance at construction meetings

between professionals and contractors is helpful as notes

derived from such meetings can be invaluable at a later time.

If defects that were found impact the safety of the com-

munity, every precaution must be taken to ensure the well

being of the residents and the preservation of the property.

The first step once a defect is found is to protect the

people using the affected areas. Once placed on notice,

property managers must be mindful of the liability due to

this defect and of the consequences in the event of an injury

potentially caused by any unsafe condition. The second

step is to curtail damage to these areas and lessen the col-

lateral damage. The third step is to evaluate the situation.

Experts will be crucial in determining what remedial mea-

sures will need to be taken. Scaffolding may need to be

erected. Netting may be utilized to catch falling debris. Areas

may need to be cordoned off. Common areas should be

protected to minimize damage and prevent contact between

the residents and contractors hired to mediate the damage.

Once a defect is suspected, often a professional is hired

by the association board to investigate the problem and

determine its severity. The manager’s assistance can great-

ly improve the expert’s ability to find and disclose problems.

To the best extent possible, the property manager should

work to minimize any negative impact of the investigation

or the remedial work itself on the residents.

Often a timeline will be very helpful, as mandatory stat-

utes can determine a course of action depending on the

amount of time that lapsed since the work was deemed

completed. Under most circumstances, an association has

six years to institute a lawsuit for construction defects under

New Jersey Statute 2A:14-1.

If efforts to have the contractor remediate the problem are

unsuccessful, legal action may be required. It is important

that the attorney is experienced with constantly evolving

construction litigation law as well as the laws covering

insurance coverage for construction defects. An attorney

may rely on not only the expert’s reports, but the testimony

from the property manager. The property manager may be

deposed to testify as a witness as to their knowledge of the

association’s construction work. The information obtained

from the manager from prior construction meetings can

Construction Defects:

The Importance of Documentation

By Walter Broome

"The first step once

a defect is found is

to protect the people

using the affected

areas."

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