California Moves on Construction Companies to Disclose Defect Convictions and Settlements

Lawmakers in California are pushing a proposal that would require construction companies to reveal the results of criminal convictions and civil suits in cases of construction defects, fraud, negligence, and incompetence. This was driven in part by an incident that recently took place in Berkeley where six college students were killed, and 7 others were injured when a balcony collapsed during a party. During investigations, it was revealed that the company that built the apartment building, Segue Construction, has shelled out over $26 million in the last few years in settlements related to balcony failures. “Contractors who do shoddy work that imperils life should have their licenses revoked,” says Senator Jerry Hill.

While it’s safe to say that most people agree with that statement, the California Building Industry Association and the trade association United Contactors are against the bill. They claim that settlements and payouts by construction companies are not the best way to determine which construction companies are “good” and “bad.” The CBIA claims that construction companies regularly make payouts, even if not completely or directly at fault. A UC spokesperson insists that the general wording of the bill will only lead to an increase in lawsuits, and that every contractor in the state will be affected by the bill.

If you are dealing with construction defects in your home, and live in the Houston, TX, area, contact a construction defect dispute lawyer at The Freeman Law Firm. Whether your issue is due to defective design, negligent builders, or substandard home construction, as well as issues such as water damage or mold, the attorneys at The Freeman Law Firm will see to it that you are properly represented and handle your case with expertise and care.

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