Having a new building built for your business or renovating an existing space is a big undertaking for any business. One of the most important things you can do when you’re handling this exciting event is to find a reputable contractor who will do the job properly.
There are some instances in which a business owner may have to deal with a construction defect. Some of these are immediately noticeable, but others might take time to recognize. Here are three main problems a construction defect could cause for your business:
If the construction defect has a negative impact on the structural integrity of the building, you may not be able to even use the space. This can occur when inferior or substandard materials are used in construction, leaving the building unsafe for occupancy.
Sometimes a construction defect will affect a company’s ability to operate in other ways. For example, if the heating and cooling system isn’t built to handle your factory operations, that could lead to dangerous problems with the air quality that could cause health problems for your workers.
Loss of revenue
There’s a chance that an insurance policy may cover the losses that your business experiences due to construction defects. Typically, however, coverage is limited to only instances in which there is an “occurrence,” which is an event that led to the loss, and a construction defect doesn’t usually meet the definition, so you may have to turn to other options for recovering the financial losses that you suffered due to the construction defect.
Construction defects can have a negative impact on your company, so they must be addressed immediately. Review the construction contract and seek legal counsel to better determine what options you have.