📋 What Are Construction Defects?

Construction defects are deficiencies in the design, materials, or workmanship of a building that cause damage, reduce its value, or make it unsafe. California law provides extensive protections for homeowners through the Contractors State License Board (CSLB), the contractor's license bond, and the SB 800 Right to Repair Act for new residential construction.

Common Types of Construction Defects

This guide applies if you are dealing with any of the following defect types:

🏠 Structural Defects

Foundation cracks, settling, inadequate framing, roof structure failures, load-bearing wall issues

💧 Water Intrusion

Roof leaks, window/door leaks, stucco failures, improper drainage, waterproofing failures

⚡ Electrical Defects

Code violations, improper wiring, overloaded circuits, fire hazards, grounding issues

🔥 Plumbing Defects

Pipe leaks, improper slope, inadequate water pressure, sewer line failures, fixture defects

🏭 HVAC Issues

Improper sizing, inadequate ductwork, code violations, efficiency problems, noise issues

🛠 Finishing Defects

Cracked drywall, uneven floors, poor paint work, tile failures, cabinetry problems

California's Construction Defect Framework

California provides multiple overlapping protections for homeowners dealing with construction defects:

📚 CSLB Contractors State License Law (B&P Code 7000+)

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California's comprehensive contractor licensing law requires all contractors performing work over $500 to be licensed. Key provisions include:

  • B&P Code 7109: Departure from accepted trade standards or negligent construction is grounds for discipline
  • B&P Code 7110: Material deviation from plans without consent is a violation
  • B&P Code 7119: Failure to prosecute work diligently is grounds for discipline
  • B&P Code 7159: Contract requirements including scope, timeline, and payment terms

🏗 SB 800 Right to Repair Act (Civil Code 895-945.5)

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SB 800 (also known as the Right to Repair Act) applies to new residential construction sold after January 1, 2003. It establishes specific construction standards and a mandatory pre-litigation repair process:

  • Detailed standards for each building component (Civil Code 896-897)
  • Mandatory notice and repair opportunity before filing suit
  • Specific timelines for builder response (Civil Code 910-938)
  • Statutes of limitation specific to each defect type (Civil Code 941)

🔒 Contractor's License Bond (B&P Code 7071.5-7071.11)

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Every licensed California contractor must maintain a $25,000 contractor's license bond. This bond protects homeowners:

  • Minimum bond is $25,000 (some specialty licenses require more)
  • Claims can be filed directly with the bonding company
  • Bond claims are separate from CSLB complaints and lawsuits
  • 2-year deadline from violation or 1 year from completion, whichever is later

🔗 Mechanic's Lien Protections (Civil Code 8000-8848)

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Understanding mechanic's liens is crucial when dealing with construction defects, as unpaid subcontractors may file liens against your property:

  • Subcontractors must provide preliminary 20-day notices (Civil Code 8200)
  • You can demand lien releases before payment (Civil Code 8132-8138)
  • Joint check provisions protect you from paying twice
  • You can bond around filed liens (Civil Code 8424)

⚠ SB 800 vs. Common Law Claims

The type of claim you have depends on your property:

  • New residential construction (sold after 1/1/2003): SB 800 applies with mandatory pre-litigation repair process
  • Remodel/renovation work: Traditional breach of contract and negligence claims apply
  • Commercial construction: SB 800 does not apply; common law claims only
  • Multi-unit residential: HOAs may pursue SB 800 claims on behalf of owners

✅ Evidence Checklist

Building a strong construction defect case requires comprehensive documentation. Use this checklist to gather the evidence you need.

📋 Contract Documentation

  • ✓ Written contract with scope of work
  • ✓ All change orders and amendments
  • ✓ Plans, specifications, and drawings
  • ✓ Payment records and invoices

📷 Defect Documentation

  • ✓ Photos of all defects (dated)
  • ✓ Video documentation of water intrusion, etc.
  • ✓ Written description of each defect
  • ✓ Timeline of when defects appeared

🔧 Professional Reports

  • ✓ Inspection reports from licensed inspectors
  • ✓ Engineering or structural assessments
  • ✓ Repair estimates from licensed contractors
  • ✓ Building code violation notices

💬 Communications

  • ✓ All emails and texts with contractor
  • ✓ Written complaints sent to contractor
  • ✓ Contractor's responses and promises to repair
  • ✓ Any warranty documents

Contractor License Verification

Before proceeding, verify your contractor's license status at the CSLB website (cslb.ca.gov). Document:

  • License number and classification
  • License status (active, suspended, revoked)
  • Bond information and bonding company
  • Any prior disciplinary actions
  • Workers' compensation insurance status

⚠ Unlicensed Contractor Work

If your contractor was unlicensed, you have additional remedies:

  • Contractor cannot enforce the contract or sue you for payment
  • You may recover all money paid (Business & Professions Code 7031)
  • Criminal misdemeanor violations apply (B&P Code 7028)
  • Report to CSLB for investigation and prosecution

💰 Damages

California law allows homeowners to recover multiple types of damages for construction defects, including repair costs, diminution in value, and consequential damages.

Recoverable Damages

Damage Type Description Notes
Cost of Repair Reasonable cost to repair defects to acceptable standard Primary measure of damages; get multiple estimates
Diminution in Value Reduction in property value if repair is impossible/impractical Requires appraisal; alternative to repair costs
Consequential Damages Temporary housing, storage, lost rent, damaged belongings Must be foreseeable and proven
Expert/Investigation Costs Inspections, engineering reports, testing Recoverable as part of damages
Attorney Fees If contract includes fee provision or statutory basis Check your contract for fee clause

📊 Sample Damages Calculation

Example: Roof and Water Intrusion Defects

Original contract price for roofing $35,000
Roof tear-off and proper reinstallation $52,000
Drywall and interior repairs (water damage) $18,000
Mold remediation $12,500
Engineering/inspection reports $3,500
Temporary housing (2 months) $6,000
Damaged personal property $4,500
TOTAL DAMAGES $96,500

Bond Claims

The contractor's $25,000 license bond provides an additional source of recovery:

🔒 Direct Filing

File directly with the bonding company listed on CSLB website; no lawsuit required

🕑 Timing

2 years from violation or 1 year from completion date, whichever is later

💰 Limits

$25,000 minimum; may be shared among multiple claimants if exceeded

📋 Documentation

Submit written claim with evidence of violations and damages

💡 Multiple Recovery Sources

You can pursue multiple remedies simultaneously:

  • Contractor's Bond: Up to $25,000 from bonding company
  • CSLB Complaint: May result in restitution order
  • Civil Lawsuit: Full damages plus attorney fees if contractual
  • Small Claims: Up to $12,500 (or $6,250 for business claims)

📝 Sample Language

Use these paragraphs to draft your construction defect demand letter. Customize the highlighted portions for your specific situation.

Opening - Demand Letter
DEMAND FOR REPAIR OF CONSTRUCTION DEFECTS

Dear [CONTRACTOR NAME]:

This letter constitutes formal notice that the construction work you performed at [PROPERTY ADDRESS] under our contract dated [DATE] contains serious defects that violate the standards of good workmanship required under California Business and Professions Code Sections 7109 and 7110, as well as our contract specifications.
Defect Description - Structural
The following structural defects have been identified:

[DESCRIBE SPECIFIC DEFECTS - e.g., "The foundation exhibits multiple cracks exceeding 1/4 inch in width, indicating improper concrete mix, inadequate curing, or insufficient reinforcement. The floor framing in the living area is visibly sagging, with a deflection of approximately 1 inch over 12 feet, suggesting undersized joists or improper joist spacing."]

These conditions violate California Building Code requirements and represent a material departure from the plans and specifications without our consent, in violation of B&P Code Section 7109.
Defect Description - Water Intrusion
The following water intrusion defects have been identified:

[DESCRIBE SPECIFIC DEFECTS - e.g., "Water is entering through the roof at multiple locations during rain events, causing damage to interior ceilings and walls. The flashing at the roof-to-wall transition was improperly installed without step flashing. The roof underlayment is torn and improperly lapped. Exterior stucco lacks proper weep screeds and has reverse laps allowing water penetration."]

Under California Civil Code Section 896(a), residential construction must not allow unintended water to pass beyond or around the exterior weather-resistant barriers. Your work fails to meet this standard.
SB 800 Notice (New Construction Only)
NOTICE PURSUANT TO CALIFORNIA CIVIL CODE SECTION 910

This notice is provided pursuant to California Civil Code Section 910, the Right to Repair Act (SB 800). This property was sold as new residential construction on [DATE].

The following defects violate the standards set forth in Civil Code Section 896:

[LIST DEFECTS BY CATEGORY - Water intrusion (CC 896(a)), Structural (CC 896(b)), Plumbing (CC 896(e)), Electrical (CC 896(f)), etc.]

Pursuant to Civil Code Section 910, you have 14 days from receipt of this notice to acknowledge receipt and schedule an inspection. Under Section 913, you have 14 days from acknowledgment to complete your inspection. Under Section 914, you then have 30 days to make a written offer to repair.
Damages Demand
We have obtained estimates from licensed contractors for the cost of repairing these defects. The total cost of repair is estimated at $[TOTAL], broken down as follows:

[ITEMIZE: Structural repairs: $X; Waterproofing repairs: $X; Interior repairs: $X; etc.]

In addition, we have incurred the following consequential damages:
- Inspection and engineering reports: $[AMOUNT]
- Temporary housing during repairs: $[AMOUNT]
- Damaged personal property: $[AMOUNT]

TOTAL DAMAGES: $[TOTAL]
Closing and Deadline
You have two options to resolve this matter:

1. REPAIR: Complete all necessary repairs within [30/60] days using licensed subcontractors, at your expense, with repairs subject to our inspection and approval; OR

2. PAYMENT: Pay the total damages of $[AMOUNT] within 15 days, allowing us to hire our own contractors for repairs.

If we do not receive a satisfactory response within [15/30] days, we will:
- File a complaint with the Contractors State License Board
- File a claim against your contractor's license bond
- Initiate legal action to recover our damages plus attorney fees

Please be advised that your license bond (Bond No. [NUMBER] with [BONDING COMPANY]) is subject to claims for violations of the Contractors State License Law.

🚀 Next Steps

Construction defect cases can be resolved through negotiation, CSLB complaints, bond claims, or litigation. Here is the process to follow.

Recommended Timeline

Step 1: Document Everything

Photograph all defects, gather contracts and communications, and obtain at least two repair estimates from licensed contractors.

Step 2: Verify License and Bond

Check the contractor's license status at cslb.ca.gov. Note the bond number and bonding company for potential bond claim.

Step 3: Send Demand Letter

Send certified letter with return receipt. For SB 800 claims, follow the specific notice requirements of Civil Code 910.

Step 4: Allow Response Time

Give contractor 15-30 days to respond (or follow SB 800 timelines if applicable). Document any response or lack thereof.

Step 5: Pursue Remedies

If no satisfactory response, file CSLB complaint, bond claim, and/or lawsuit simultaneously.

CSLB Complaint Process

Filing a CSLB complaint can result in license discipline and restitution orders:

  1. File Online or by Mail

    Submit complaint at cslb.ca.gov or call (800) 321-CSLB. Include all documentation, photos, and your demand letter.

  2. CSLB Investigation

    An Enforcement Representative will investigate, potentially including site inspection. Contractor will be asked to respond.

  3. Resolution Options

    CSLB may facilitate settlement, order arbitration, cite the contractor, or refer for administrative prosecution.

  4. License Discipline

    Serious violations can result in license suspension, revocation, or conditions requiring restitution.

Bond Claim Process

  1. Identify the Bonding Company

    Find bond information on CSLB license lookup at cslb.ca.gov.

  2. Submit Written Claim

    Send claim to bonding company with all documentation of contractor violations and your damages.

  3. Bonding Company Investigation

    Company will investigate and may request additional information or documentation.

  4. Payment or Denial

    If claim is approved, payment up to bond limit. If denied, you can pursue through CSLB or court.

⚠ When to Hire an Attorney

Consider hiring a construction defect attorney if:

  • Damages exceed $25,000 (beyond bond limit)
  • Defects involve structural or safety issues
  • SB 800 procedures apply (complex process)
  • Contractor disputes liability or has a lawyer
  • Multiple parties involved (subcontractors, developers)
  • You need expert testimony (engineering, architecture)

Get a Construction Law Consultation

Construction defect cases involve complex technical and legal issues. Get a consultation with an experienced California construction attorney.

Book Consultation - $125

California Resources

  • CSLB License Lookup: cslb.ca.gov - Verify license, find bond info, file complaints
  • CSLB Consumer Guide: cslb.ca.gov/Consumers - Hiring contractors, filing complaints
  • California Courts Self-Help: selfhelp.courts.ca.gov - Small claims and civil procedures
  • State Bar Lawyer Referral: calbar.ca.gov - Find construction law attorneys

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