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In California what liability does a contractor have for new construction?
Hello! Thanks for your question about California contractor liability laws. The short version is that licensed builders (including contractors) are liable for 1 year "fit and finish warranty". Beyond that, contractors can offer extended warranties to cover more, but are required to be accountable for 10 years after home completion for a minimum of standards such as structural defects and water damage if it can be proven that the home was built improperly. However, there are a few defects that builders are not liable for after 4 years post-completion.
To give the most complete answer to this question, I relied on California's civil codes for construction, and focused solely on single family homes, not large scale builders. I broke down my findings into warranty specifications, timing requirements to file a claim, what is precisely covered under the codes, and next steps.
Below you will find a deep dive of my findings.
WARRANTIES
All home builders, be they developers, builders, or contractors depending on the scale of the build, are required to offer a one year warranty either in writing or as an implied promise under CA civil code 900. This is often referred to as the "Fit and Finish Warranty" to cover things such as tiling, counter installation, and painting. This does not cover defective appliances.
Beyond one year, the builder may offer an extended warranty that should be given to the homeowner in written form. At a minimum, it must offer what is covered by CA civil code sections 895-945.5. If the house is sold, the new homeowner takes over the warranty if the builder sends it to them or it is on file with the title. If it is not sent and/or not on file, then the civil code minimum is still required for builders to honor.
For four years after completion, builders are liable for items to be installed free of defects in accordance to local codes and the manufacturer's regulations under CA Business and Professions Code 709a. This covers what are called "patent" defects.
"Latent" defects refer to long term issues with the construction that are not readily apparent without expertise or disaster. These defects include structural problems (e.g. foundation cracks, improper roof framing, etc.) Builders are liable for latent defects for 10 years after completion.
Warranties should be carefully checked for specific maintenance details and what is covered by the builder. If the homeowner does not follow reasonable maintenance practices (e.g. cleaning gutters, proper ventilation in rooms, maintenance of humidity levels, etc.) then the builder may not be liable for defects and damages.
There are several clauses that are not legally required for builders to cover beyond a failure by the homeowner to maintain the property. These include reasonable deterioration of materials within an industry standard, appliance damage, damage incurred by other workers hired by the homeowner, and damages caused by outside forces such as rioters and natural disasters.
COVERED BY CA LAW AT A MINIMUM
For ten years, California's civil code holds licensed builders liable, under sections 895- 945.5, to a minimum of construction integrity. The full list can be viewed here under heading 896. In relation to water damage mentioned in the question, the most relevant clauses are:
--"Windows, patio doors, deck doors, and their systems shall not allow water to pass beyond, around, or through the window, patio door, or deck door or its designed or actual moisture barriers, including, without limitation, internal barriers within the systems
themselves."
--Plumbing and sewage systems will be installed in such a way as to not leak or excessively corrode.
--"Exterior pathways, driveways, hardscape, sidewalls, sidewalks, and patios installed by the original builder shall not contain cracks that display significant vertical displacement or that are excessive. However, no action shall be brought upon a violation of this paragraph more than four years from close of escrow."
It is worth noting in this last point that these defects can only be claimed within a period of four years after completion.
PROCEDURE FOR CLAIMS
If there is a defect covered by the civil code, a specific set of actions must be taken or the homeowner forfeits the ability to hold the builder liable.
All complaints must be made within 10 years under the Right to Repair Act, though some damages have a shorter time window as mentioned above.
For a claim, homeowners have only to prove that ""in accordance with the applicable evidentiary standard,that the home does not
Once this claim is established, the homeowner or their legal representation must send a written notice to the builder/contractor with contact information and claim details. The builder then has 30 days to come up with specifications, maintenance plans, and calculations relevant to the claim. The builder has a set amount of time to respond that the claim has been received and has the right to inspect the construction.
Many times, the builder offers to repair the damage, but if this does not occur, the issue can be taken to Small Claims Court or the CA Contractors' State Licensing Board. This is one reason it is suggested that all prospective contractors are first assessed to see if their license is current and valid. If the claim is taken to court, CA civil law states "as to any claims involving a detached single-family home, the homeowner's right to the reasonable value of repairing any nonconformity is limited to the repair costs, or the diminution in current value of the home caused by the
CONCLUSIONS
In accordance to California civil law, the contractor is liable for a stated minimum standard of construction for 10 years after building even if the house has been sold to new owners. However, certain defects can only be claimed for 1 or 4 years after completion. Water damage is covered for up to 10 years in most circumstances. Claims must be first presented to the builder before advancing to court. There does not appear to be a distinction made between buildings built for individual owners as compared to those built on spec.
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