Construction defect claims in Texas can create major problems for both property owners and builders. Whether it’s a new home with foundation cracks or a commercial building with water leaks, these issues can be expensive and time-consuming to fix. Knowing your rights and responsibilities under Texas law is the first step to protecting your property or business.
What Counts as a Construction Defect?
A construction defect is a problem with how a building was designed, built, repaired, or remodeled. It could be anything from poor materials and bad workmanship to structural failures. Some defects are obvious (like cracks in walls), while others take years to show up (like leaks or mold behind walls). In Texas, both patent defects (easy to see) and latent defects (hidden) may be grounds for legal action.
The Texas Residential Construction Liability Act (RCLA)
The Texas Residential Construction Liability Act (RCLA) outlines what homeowners must do before filing a lawsuit against a builder. It also gives contractors a chance to inspect the issue and propose a repair or settlement. Homeowners must give written notice of the defect at least 60 days before suing. Contractors now have up to 60 days to make a written offer to repair or settle the claim, as outlined in Tex. Prop. Code § 27.004. They also have the right to inspect the property up to three times within 35 days of receiving notice.
House Bill 2022 updated the law for contracts signed after September 1, 2023. It allows late settlement offers if delays were beyond the contractor’s control. It also narrows the definition of a defect. Homeowners must prove the issue existed during construction and either caused physical damage, led to a major system failure, or made the home unsafe. Damages for personal injury are no longer considered economic damages under this law.
House Bill 2022 updated this law for contracts signed after September 1, 2023. Contractors now have more flexibility to make a late offer if delays were out of their control. The law also narrows the definition of a defect. Homeowners must show the defect existed during construction and caused physical damage, failure of a key building part, or made the home unsafe. Damages for personal injury no longer count as economic damages under this statute.
Common Types of Defects in Texas Homes
Some of the most common new home construction defects in Texas include:
- Foundation cracks or shifting
- Roof leaks
- Poor drainage or grading
- Improper framing or structural issues
- HVAC or electrical problems
- Plumbing failures
These issues can lead to bigger problems like mold, wood rot, or even total loss of use. Texas property damage from poor construction can be costly and may even affect home resale value.
Statute of Limitations and Statute of Repose
Time limits apply when filing construction defect claims in Texas. For most breach of contract and warranty claims, the statute of limitations is four years from the date the defect is discovered or should have been discovered. If the claim involves fraud, this period may be extended.
There is also a statute of repose, which sets a hard deadline regardless of when the defect is found. In 2023, the Texas Legislature passed House Bill 2024, which changed the rules for certain residential construction projects. For contracts signed on or after June 9, 2023, the statute of repose is shortened from 10 years to 6 years only if the builder provides a written warranty that meets these minimum standards:
- 1 year for workmanship and materials
- 2 years for plumbing, electrical, heating, and air-conditioning systems
- 6 years for major structural components
This new six-year rule applies to builders of detached one- and two-family homes and townhomes up to three stories. For other types of buildings, including apartments or commercial structures, the statute of repose remains 10 years. Whether you’re a homeowner or contractor, understanding which deadline applies to your situation is key to protecting your rights.
Who Is Liable for Construction Defects?
Builder liability in Texas depends on the contract, the nature of the defect, and who was responsible for the work. Contractors, subcontractors, engineers, and even architects can be held responsible for problems they caused through negligence or breach of warranty.
Contractor negligence in Texas construction often includes things like not following code, failing to supervise subcontractors, or using bad materials. However, liability can be limited if the builder warned the owner about a risk or if the defect was caused by homeowner changes or lack of maintenance.
Construction Warranty Disputes in Texas
Most builders offer a warranty, either through a written contract or a third-party warranty company. Disputes often arise when builders deny responsibility for problems or offer limited repairs that don’t fully fix the issue. These construction warranty disputes in Texas may still fall under the RCLA or lead to a breach of contract claim, depending on the terms of the warranty.
In some cases, builders might try to use arbitration clauses to avoid court. Whether these clauses are enforceable depends on the wording and how they were presented.
How to File a Construction Defect Claim in Texas
If you’re a homeowner dealing with a construction issue, here are steps to consider:
- Document everything: Take photos, videos, and keep all contracts and communications.
- Send RCLA notice: Give the builder written notice of the defect, as required by law.
- Let them inspect: Allow the contractor to examine the issue.
- Review their offer: Decide if their repair or settlement offer is fair.
- Seek legal help if needed: If the offer is too low or the problem isn’t fixed, you may need to file a construction defect lawsuit in Texas.
These steps are designed to give both sides a chance to resolve the issue before it escalates. But when repair efforts fail or communication breaks down, legal action may be the only way forward.
What Contractors Should Know
Contractors should document all work, keep copies of change orders, and respond to complaints quickly. Failing to follow RCLA procedures can lead to bigger legal problems down the line. Also, be aware of your warranty obligations and how Texas construction law homeowner rights can impact you.
Builders should also pay attention to the shorter statute of repose now in effect. Projects finished after June 2023 are subject to the new 6-year deadline, which limits how long you might be liable for defects.
Talk to the Law Office of Kyle J. Moore, PLLC
If you’re dealing with construction defect claims in Texas, The Law Office of Kyle J. Moore, PLLC can help. We understand the challenges both owners and contractors face in these disputes. Our law firm handles not only construction-related matters, but also consumer law, insurance law, general civil litigation, and appellate law, among many others.
Whether you’re trying to resolve an RCLA claim, deal with a contractor who won’t honor a warranty, or defend your work as a builder, reach out to us today. We’ll work with you to protect your rights and move forward with confidence.