HB 2806 - DIGEST


Finds that explicit, detailed legal standards should be created governing both the functioning of newly constructed homes and the rights and responsibilities of the builder and the homeowner. By creating these explicit standards, the legislature intends to provide a reference point that can be used by builders and homeowners in resolving disputes over alleged construction defects and, thus, facilitate the resolution of homeowner claims.

Finds that the prompt and fair resolution of construction defect claims serves the interests of homeowners, builders, and the citizens of this state. The use of the courts for the resolution of these claims has proven to be inefficient and costly, insofar as legal actions often take years to resolve, clog our already overburdened court system, and involve legal expenses that are unduly burdensome on all parties. Furthermore, the costs associated with protracted construction defect litigation have contributed to the skyrocketing insurance premiums experienced in recent years by both builders and homeowners.

Finds that a nonjudicial process should be created for the quick and fair resolution of construction defect claims. By creating such a process, the legislature intends to provide a mechanism by which builders and homeowners may resolve these claims without resort to legal action.