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New York Construction Law Blog

A construction defect lawsuit can hurt your company

Posted by Karl Silverberg | May 25, 2023 | 0 Comments

From faulty drains to foundation cracks and water intrusion, construction defects can lower a structure's value and compromise residents' safety and health. Besides, it can be costly and challenging to resolve construction defect lawsuits.

As a result, construction industry professionals need to understand the types of construction defects and how they can affect companies and the projects that they undertake. If you are a business owner, these are some of the primary ways a construction defect lawsuit can hurt your company.

It can damage your company's reputation

If a client sues your company for a construction defect and leaves a poor rating online to boot, it may damage your company's reputation. As a result, this may negatively affect your company's revenue. Once the news about the claim spreads, you may lose a part of your current client base, and new clients looking to work with you may hear about the lawsuit and could avoid your business.

High costs

If your company is found liable for a construction defect lawsuit, it may face countless legal problems in the form of penalties, damages and other legal consequences. Construction defect lawsuits are usually costly. From the high legal costs to the damages compensated to the claimants, dealing with such lawsuits can harm your company's financial status. The costs you could incur will depend on the type of case. For example, you might be required to compensate for a financial loss like lost wages and medical bills in case of a personal injury case resulting from the defects.

Many things can happen if your company is sued for a construction defect. Depending on the circumstances of your case, the future of your business may be at risk. Therefore, consider seeking legal guidance immediately if you business is facing a construction defect lawsuit.

About the Author

Karl Silverberg

Karl Silverberg Contact Me: (631) 778-6077 Email me Practice Areas: Construction Law Biography Prior to law school, Mr. Silverberg worked as a professional engineer, and has eight years of experience working as a structural engineer on public sector transportation projects. Mr. Silver...


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