AIA Urges Calif. Gov. to Approve Measure Giving Builders the Right to Repair Construction Defects

The American Insurance Association (AIA) is calling upon Gov. Gray Davis (D) to sign a measure that will give California builders the right to repair construction defects. AIA says this measure will reduce the number of lawsuits.

“Governor Davis should approve this measure,” Mark Sektnan, AIA assistant vice president, western region, commented. “This bill is a win-win for homeowners and builders. Homeowners will now have their homes repaired quickly, and builders will avoid much of the type of knee-jerk litigation that drives up the cost of homes in California.”

SB 800, authored by Senate President Pro Tem John Burton (D) and Assembly Speaker Herb Wesson (D), establishes specific definitions for construction defects. The bill also requires homeowners to give notice to their builder if they discover defects. Once notified, builders will then be given the chance to repair any alleged defect within a specified amount of time. Homeowners will retain the right to pursue litigation if the repairs are not made or are found to be inadequate.

“The reforms in this bill will give homeowners a standard of expectations for the construction of their home,” Sektnan said. “Under these new functionality standards, builders, subcontractors, designers and insurers will have predictable guidelines for making repairs.

“We still have more work to do next year. This measure is a good step in the right direction, but it does not make significant changes that will improve the insurance market for builders and subcontractors. The California Legislature must continue the work begun this year and begin meeting early in 2003 to craft reforms that will bring more predictability and affordability back into the construction insurance market.”

Gov. Davis has until Sept. 30 to sign or veto SB 800.

If approved the legislation will take effect Jan.1, 2003.

Topics California Homeowners Construction