Keep a record of manufacturers’ warranties to help homeowners if needed. Oftentimes claims arise because of a product failure — a window doesn’t lock, a thermostat isn’t working or a faucet is leaking. Many times homeowners are not educated about making claims directly to a manufacturer. By keeping records of the warranties offered by manufacturers, a builder can help the homeowner make a claim directly with the manufacturer. If it is a product failure that falls within the warranty, the manufacturer often will repair or replace the item at its own cost.

It’s also important to develop a procedure for reporting problems. The agreement with clients to build or purchase a home typically outlines a builder’s obligations to that client, including any obligation the builder may have to repair damages. These agreements also can outline the client’s obligations to the builder. The agreement should clearly set forth the procedures a client should use to notify the builder of a problem. By developing a procedure before work is completed, confusion and risk of a claim can be minimized.

For example, if a builder requires that all claims for faulty work be submitted in writing, provide a form to the client that identifies the information the builder needs to make repairs such as: a description of the problem; location of the problem; when the client first noticed the problem; and any damage caused by the problem. The more clearly a builder sets forth the procedures the client should use, the more likely the builder will be able to identify the most efficient way to respond to the problem before the builder arrives at the home to make the repair.

Repairs and Claims

Making repairs correctly is important, but so is documenting the repairs, damages and expenses. Photographs should be taken when the claim is first reported. Documenting the damage is key when builders submit a claim to their insurance company. By establishing there was damage before any repairs were made, builders can short-circuit a claim that the repairs builders made were voluntary or unnecessary and therefore not covered by their insurance policy.

The prerepair photographs should be taken not only of the specific item of damages, but also of the general conditions. Oftentimes if there is no point of reference photographed, the damages can appear to be more significant than they truly are. If the damage appears on a wall, take a picture of the entire wall not just the damaged portion. A written description of the photographs should be prepared as the photographs are taken and written on the back.