Construction Defects in Texas: Legal Rights and Claims

Construction defects can cause major headaches for property owners, developers, contractors, and subcontractors. Whether the issue is structural, cosmetic, or systemic, Texas law provides specific rights and procedures for identifying, resolving, and litigating construction defects.

This page explains the types of construction defects under Texas law, how to pursue or defend a claim, and what to expect during the resolution process.

1. What Is a Construction Defect?

A construction defect is a flaw in the design, workmanship, or materials of a building that results in damage, reduced value, or safety concerns. Defects may appear immediately or become noticeable months or years after completion.

Common examples of defects include:

• Foundation cracks or movement
• Roof leaks or flashing failures
• Poor drainage or grading
• Electrical or plumbing code violations
• HVAC malfunctions
• Water intrusion or mold
• Faulty windows, doors, or siding
• Structural framing problems

Defects may be minor or serious, visible or hidden, and may require costly repairs to correct.

2. Types of Construction Defects

Texas law typically classifies defects into three main categories:

• Design defects – Flaws in architectural or engineering plans
• Material defects – Use of substandard or unsuitable materials
• Workmanship defects – Poor installation or construction practices

Some defects fall into multiple categories and may involve several responsible parties.

3. Legal Theories for Construction Defect Claims

Plaintiffs in Texas may bring a defect claim under various legal theories, including:

• Breach of contract
• Breach of warranty (express or implied)
• Negligence
• Fraud or misrepresentation
• Strict liability (in limited cases)

The choice of theory depends on the parties’ relationship, the contract language, and the nature of the defect.

4. The Residential Construction Liability Act (RCLA)

For residential construction projects, Texas applies the Residential Construction Liability Act (RCLA), found in Chapter 27 of the Texas Property Code. The RCLA governs how and when homeowners can bring claims for construction defects.

Key provisions include:

• Homeowners must provide a 60-day written notice before filing suit
• The contractor has the right to inspect and make a written settlement offer
• If repairs are offered and refused, it may reduce the homeowner’s damages
• The law limits damages to certain categories, such as repair costs and loss of use

Following the RCLA is mandatory and can significantly affect the outcome of a claim.

5. Implied Warranties in Texas

In addition to express warranties in a contract, Texas law recognizes certain implied warranties, especially in residential construction:

• Implied warranty of good and workmanlike construction
• Implied warranty of habitability for new homes

These warranties can apply even if the contract is silent on them. However, some may be waived by clear, written contract language.

6. Statutes of Limitation and Repose

Construction defect claims are subject to strict time limits. In Texas:

• Most claims must be filed within 4 years of the breach or injury
• Claims for latent (hidden) defects may allow for discovery-based extensions
• A 10-year statute of repose bars claims filed more than 10 years after substantial completion

Missing these deadlines can result in dismissal, even for serious defects.

7. Defending Against Defect Claims

Contractors and builders facing defect allegations have several potential defenses:

• The defect was not caused by their work
• The damage was due to misuse or lack of maintenance
• The claimant failed to follow the RCLA procedures
• The claim is barred by time limits
• The defect was caused by a subcontractor or design professional

Liability often turns on expert analysis and documentation of work performed.

8. Role of Insurance in Defect Claims

General liability insurance may cover some types of construction defect claims, especially where property damage has occurred. However:

• Most policies exclude faulty workmanship or purely economic losses
• Coverage depends on the timing and language of the policy
• Builders may need to notify insurers early to preserve coverage rights

Contractors should also verify whether subcontractors have appropriate insurance and whether additional insured endorsements apply.

9. Using Experts to Prove or Defend Claims

Construction defect cases often require expert witnesses to inspect the property, determine the cause of the defect, and estimate the cost of repair. Common expert roles include:

• Structural engineers
• General contractors
• Architects
• Forensic inspectors
• Cost estimators

Experts can strengthen a claim or defense by offering credible, technical opinions backed by data.

10. Resolution of Construction Defect Disputes

Disputes over construction defects may be resolved in several ways:

• Informal negotiation
• Repairs or replacement
• Mediation
• Arbitration (if required by contract)
• Litigation in court

In residential cases, RCLA compliance is often the first step before any legal action can proceed.

Conclusion

Construction defects can be expensive, disruptive, and legally complex. Whether you are a homeowner seeking repairs or a builder defending your work, Texas law provides specific rights, procedures, and limitations for handling these claims.

Guerra Days Law Group helps homeowners, developers, and contractors resolve defect claims through negotiation, repair, and litigation. Contact us today to discuss your case and protect your interests.