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Aug 15, 23 • News

THE EVER-SHRINKING HOMEBUILDER WARRANTIES

 

I have written numerous times about the near-worthless warranties offered by Texas homebuilders. On September 1, 2023, I will now have less to write about. The barking-mad buffoons in the Texas Legislature were successfully lobbied by the Texas Builders Association and their insurers into lowering the 10-year maximum structural warranty to 6 years. There must have been some big money changing hands to get a whopping 40% reduction in consumer protection. Ya’ think?

 

It has been a slow-moving coup. We went from having an implied warranty of good workmanship (remember that?) and habitability back in 2000 to express warranties of 1-2-10 years, and now to 1-2-6 years. Given the philosophies embraced by the ruling party in Austin, I give it another 5 years before we are down to a 1-2-3 express warranty. Another 10 years, and they’ll be like the warranties on the appliance the builders install – 365 days.

 

Ticking bombs.

 

The bright side, if there is one, is that the express warranties never actually warranted much anyway. So, homebuyers have not lost a whole lot—just 40% of disingenuous, empty promises.

 

I am reminding those of you who are about to sign on the dotted line with an unlicensed, unregulated Texas builder to have them build your new house that you have literally no protection from the unconscionable building practices that prevail here.

 

Get a copy of the warranty before you buy. Read the exclusions. These warranties consist mostly of exclusions. Important exclusions. For example, they do not cover building code violations. Since the building codes are the MINIMAL standards, one might presume that the warranties would insist on ensuring compliance with them. That is not the case.

 

If you do not have your house independently inspected during the construction process for code compliance, who will ensure that compliance? Your builder certainly will not. The municipal inspectors will not. The Texas Legislature will definitely not. The Texas Attorney General cannot – he’s been put on indefinite leave due to “alleged” corruption. You’ll be screwed. Self-screwed, not to put too fine a point on it.

 

 

 

 

No AI Employed by Texas Inspector

Jun 25, 23 • News

 

With the relatively recent advent of media bombardment regarding A.I. meddling in human affairs, I feel I should remind everyone that I do not employ artificial intelligence in writing my blog articles or inspection reports. There is simply no question as to who is more qualified; me with 48 years in construction defect identification or AI with literally no boots-on-the-ground experience.

 

As with most businesses, A.I. lovers are attempting to insinuate themselves into everything. Inspection report-writing software companies are hawking their wares with ludicrous statements like:

 

One of the key drivers for the adoption of AI-based home inspection software is the shortage of skilled labor in the industry. According to the National Association of Home Inspectors, the demand for home inspections is projected to grow by 10% over the next decade, while the supply of qualified inspectors is expected to decrease by 15%. This means that the industry will face a shortage of 25,000 inspectors by 2029.

 

AI-based home inspection software like XYZ is providing a solution to this problem by providing a consistent level of quality across all inspections, regardless of the inspector. This technology is capable of analyzing large amounts of data quickly and providing a detailed report and recommendations for repairs or upgrades in a fraction of the time it would take a human inspector.

 

A.I. lovers dream on.

Texas Association of Builders Warranty

Apr 5, 23 • News

The Texas Association of Builders (TAB) Warranty

 

The State of Texas does not regulate homebuilders. They are self-regulated.

If you search Google for who governs Texas home builders you get the following result: “The Texas Association of Home Builders (TAB) is a voluntary trade organization representing all segments of the residential building industry.”

 

“Founded in 1946, the Texas Association of Builders is an affiliate of the National Association of Home Builders and has 26 local associations and nearly 10,000 builder, remodeler, developer and associate members across the state. Representing over 758,000 jobs and more than $71.5 billion annually in the Texas economy, the state and local associations play a crucial role in providing housing for Texans.

 

The Texas Association of Builders is dedicated to creating a positive business environment for the housing industry by addressing the housing issues of the people of Texas.” – From the TAB website

 

Note that nothing is said regarding consumer protection. It is all about a “positive business environment for the housing industry”. Read: industry control.

 

“The Texas Association of Builders (TAB) has a standing Contracts Committee to ensure that its contracts are comprehensive, up-to-date, and the best product available in Texas.  As such, the TAB contracts provide homeowners and builders an invaluable benefit in the form of enhanced legal protections, reduced liability, clear legal compliance with various Texas laws and a solid written warranty with some of the strongest performance standards in the nation.  Many other form contracts, including the National Association of Home Builders’ contracts, fail to meet numerous statutory requirements in the Texas Property Code, as well as fail to properly waive all implied warranties as outlined by the Supreme Court of Texas, thereby exposing homeowners and builders to serious legal liabilities and significant expenses, including the voiding of non-compliant contracts.” – From the TAB website

 

Though cryptically stated, this explains they are mainly concerned with enhanced legal protections and reduced liability for home builders. Avoiding legal liabilities through lobbying for builder-friendly laws as opposed to actually constructing houses properly. It is important to note that they are praising their own efforts to preclude builders from the need to adhere to the any implied warranties.

 

EXPRESS VS. IMPLIED WARRANTIES

In Texas home building, an express warranty and an implied warranty are two different types of warranties that provide different levels of protection to the homeowner.

 

An express warranty is a warranty that is explicitly stated in writing, such as in a contract, sales brochure, or other documentation. The terms of an express warranty are negotiated between the home builder and the homeowner and can vary widely. For example, an express warranty might specify that the home’s foundation will not crack for a certain number of years or that the roof will not leak.

 

In contrast, an implied warranty is a warranty that is not explicitly stated but is automatically assumed to exist by law. In Texas, there are two types of implied warranties that apply to new home construction: the implied warranty of habitability and the implied warranty of good workmanship. The implied warranty of habitability means that a new home must be fit for its intended use as a dwelling and must be free from any defects that could affect its use for that purpose. The implied warranty of good workmanship means that the home must be constructed in a workmanlike manner, using materials that are of a quality consistent with industry standards.

 

The key difference between an express warranty and an implied warranty is that an express warranty is negotiated and agreed upon by the parties, while an implied warranty is automatically implied by law. Additionally, an express warranty may offer more specific protections than an implied warranty, while an implied warranty applies regardless of whether or not it is explicitly stated in the contract.

 

IMPLIED WARRANTIES

  1. IMPLIED WARRANTY OF GOOD WORKMANSHIP

The implied warranty of good workmanship is a common law principle that is implied in every construction contract, regardless of whether it is explicitly stated in the contract or not. It is a promise that the work performed by the contractor or subcontractor will be done in a skillful, careful, and diligent manner consistent with the standards of the trade.

 

The warranty applies to both the construction of new property and the repair or modification of existing property. It requires the work to be done in a manner that meets the standards of the industry and is consistent with the expectations of a reasonable person. If the work performed by the contractor or subcontractor does not meet these standards, the owner may have a cause of action against them for breach of the implied warranty of good workmanship.

 

It is important to note that the warranty does not guarantee a perfect result, but rather a result that is consistent with the standards of the industry. If the work is performed in a good and workmanlike manner, but defects or problems arise later, the owner may still have recourse through other legal avenues, such as a breach of contract claim or a claim for negligence.

 

Overall, the implied warranty of good workmanship is an important protection for owners and ensures that construction work is performed to a reasonable standard of quality.

 

A profit-driven industry that is self-policing would surely do all in its power to avoid adherence to avoid dealing with something as consumer-friendly as an implied warranty of good workmanship.

 

  1. IMPLIED WARRANTY OF HABITABILITY

The implied warranty of habitability is a legal doctrine that is implied in most residential construction contracts. It requires the contractor to construct a residential dwelling that is safe, sanitary, and fit for human habitation at the time of sale, and that is free from defects that could render the dwelling uninhabitable. The warranty is implied by law, which means that it applies even if it is not specifically stated in the contract.

 

In most states, including Texas, the implied warranty of habitability cannot be waived because it is viewed as being in the public interest to protect homeowners from uninhabitable conditions. However, the implied warranty of good workmanship can be superseded by an express warranty if the parties’ agreement specifically describes the manner, performance, or quality of the services to be provided.

 

This means that if the parties explicitly agree to a higher or lower standard of workmanship than what is normally expected in the industry, the express warranty will supersede the implied warranty of good workmanship. However, the express warranty must be clear and unambiguous and must be sufficiently specific to the work being performed.

 

Overall, both the implied warranty of habitability and the implied warranty of good workmanship are important protections for homeowners. While the implied warranty of habitability is generally viewed as being non-waivable, the implied warranty of good workmanship can be superseded by an express warranty under certain circumstances.

 

EXPRESS WARRANTIES

The darling of the TAB is their express warranty, which they tout as the best warranty in the nation. It was originally authored by the now defunct Texas Residential Construction Commission (TRCC).

 

The Texas Residential Construction Commission (TRCC) was a state agency established in 2003 to regulate the home building industry and resolve disputes between homeowners and builders. However, it was disbanded in 2009 due to controversy surrounding its effectiveness and transparency.

 

One of the main criticisms of the TRCC was that it was too closely aligned with the home building industry and did not adequately protect homeowners’ rights. Critics argued that the TRCC’s dispute resolution process favored builders over homeowners and that its regulations were weak and ineffective.

 

In addition, there were concerns about the TRCC’s transparency and accountability. Some critics claimed that the agency was too secretive and that its decision-making process was not open to public scrutiny. In response to these concerns, the Texas Legislature voted to abolish the TRCC in 2009.

 

The commission that the builders themselves lobbied for was deep-sixed due to what the Sunset Commission regarded as widespread builder corruption.

 

BUILDING CODES

The State of Texas has adopted minimum model building standards for home construction in the form of those authored by the International Code Council (International Residential Code, International Energy Efficiency Code, et al.) and the National Fire Protection Association (National Electrical Code).

 

The purpose of these codes, per the ICC:

 

“IRC R101.3 Intent. The purpose of this code is to establish minimum requirements to safeguard the public safety, health and general welfare through affordability, structural strength, means of egress facilities, stability, sanitation, light and ventilation, energy conservation and safety to life and property from fire and other hazards attributed to the built environment, and to provide safety to fire fighters and emergency responders during emergency operations.”

 

The only mention of building codes – the absolute minimum of consumer protection in new home construction – is in the exclusions of the warranty adopted by the Texas Association of Builders.

 

“Section VIII Exclusions – 5. Failure of Your Builder/Seller to complete construction or construction which is noncompliant with plans and specifications;

violations of local or national building codes, ordinances or standards;”

 

So, if your builder does not build in accordance with the minimum building standards, and the municipal inspector (if any) does not do his job to enforce these standards, you will find yourself in an extremely challenging situation that may not be practically escapable.

 

” Government Affairs

The Texas Association of Builders’ professional government relations staff work year-round to advocate for legislative reforms that benefit our industry. TAB’s experienced lobbyists monitor bills, legislative and regulatory agency hearings that affect the building industry and work to amend or defeat measures that would adversely impact the industry.

 

TAB’s government affairs program is nationally recognized for its innovation and legislative successes. The effective efforts of TAB’s government relations team has resulted in the defeat of bills that would potentially harm our industry, and add significant costs to the home building industry and, in turn, to the home buying public.

 

The home building industry is among the most regulated industries in the country. In Texas, several regulatory agencies govern the practice of construction including: Texas Department of Licensing and Regulation (TDLR), Texas Department of Insurance (TDI), State Energy Conservation Office (SECO), Texas Commission for Environmental Quality (TCEQ) and Texas State Board of Plumbing Examiners.

 

TAB staff continuously monitors regulatory changes and new rule postings. When changes are proposed, TAB staff and members participate in the process by providing comments and testimony in an effort to keep the home building industry free from excessive regulation and fees.” – From the TAB website

 

The TAB evidently considers any regulation of its members to be excessive.

In short, the TAB is on a course to supplant all industry standards with their paper-thin express warranty.

 

RECOMMENDATIONS

Before you sign on the dotted line with any Texas homebuilder, hire an attorney to review the contract, warranty, and other documents involved and explain your rights.

 

 

 

 

Let Me See Those Plans

Dec 14, 22 • News

Let Me See Those Plans

 

Projects as complicated and pricey as building a new house require professional planning. An architect must lay down the bones of the house, i.e., the floor plan and elevations. Afterward, an engineer is needed to design the framework of the structure so that the materials used will satisfy the load requirements for the design and location. Either of these professionals or the two working in tandem choose the exterior and interior cladding materials, electrical wiring and fixtures, plumbing and fixtures, mechanical design and equipment, etc.

 

Once all of the requisite decisions are made, the design of the house is committed to technical drawings and written specifications. These two elements comprise the plans (formerly referred to as blueprints). Several copies of these plans are then submitted to the local building inspection department, where a certified plans examiner ensures that the design complies with all building, electrical, plumbing, and energy codes adopted by the municipality.

 

Once the building inspection department approves, a permit is issued to the house builder, and work on the project can commence. The builder then distributes copies of the approved plans to all of the subcontractors involved in the construction of the house.

 

Throughout the process described above, the original designer’s copyright has not been infringed, assuming that the builder either has an in-house design department or purchased the plans from a third-party designer. The other folks, such as the builder’s staff, his subcontractors, and the municipal building inspection department, are using the plans under the fair use doctrine that applies to copyright laws.

 

With very few exceptions, Texas production builders will not provide you with plans for the house you hire them to build for you. Why do you suppose that is? They will hand them out freely to every questionably-legal immigrant worker but not to you – the purchaser. One answer is that they are too cheap to print them for you – it eats into their almighty profit. More importantly, they do not want you to know how far they stray from the plans during construction.

 

This presents a real problem in that, without the plans, you will not know if you are getting what you paid for. Additionally, if you hire a third-party inspector (and you should if you have two synapses to rub together), that inspector will need those plans to ensure that your house is being constructed in strict compliance with the plans and the applicable industry standards.

 

What’s a mother to do? In Chapter 552 of the Texas Government Code, we find that anyone can request copies of documents determined to be “public information.” This means written, produced, collected, assembled, or maintained information under a law or ordinance or in connection with the transaction of official business by a governmental body, such as your municipality. Once requested, the municipality has ten business days to provide you access to the documents requested.

 

When requesting the plans for your house, the request should read something like this:

 

All documents and drawings associated with the permitting, constructing, and inspecting the single-family residence located at 123 Yee-hah Street, Redneck, Texas 75XXX“.

 

If the municipality resists, explain that you will both file a formal complaint with the Texas Office of the Attorney General and contact your attorney. Problem solved.

 

Almost. All of the above information applies only if your house is within the limits of a municipality or within its extraterritorial boundaries. If your house is situated in an unincorporated area of a county, you will need to have your attorney write into your contract with your builder that you will receive a complete set of plans before the commencement of construction.

 

See:

https://statutes.capitol.texas.gov/Docs/GV/htm/GV.552.htm

https://www.texasattorneygeneral.gov/open-government/members-public

https://www.texasattorneygeneral.gov/publicinfo_hb.pdf

 

Simple Trick to Measure Lot Grading

Sep 1, 22 • News

One of my biggest concerns with any inspection is lot grading and drainage. Because most folks assume that they understand it – after all, we all can grasp that water runs downhill – but practically all have no idea of the significance. This statement includes home builders, municipal inspectors, and home buyers.

 

North Central Texas has some of the most expansive clay soils in the nation. Add to that the fact that, for the most part, foundations here are woefully under-engineered. Let’s include one last pertinent fact: Texas builders and contractors are totally unregulated. It should then come as no surprise that Texas has the most significant number of foundation failures and repair companies in the USA.

 

The problem begins with a near-total lack of understanding (or concern, or both) of the aforementioned facts on the parts of the builders and municipal inspectors. These are unreachable by merely appealing to reason by presenting arguments based on facts. That just leaves you – the home buyers. Hopefully, I can make some headway with you.

 

Texas builders are only interested in profit. The Texas Legislature is only interested in one thing – getting reelected. The more profit their constituents (the builders) make, the more they have to spend on getting their favorite congressman back into the office to support builder-friendly legislation. Grading and drainage is not their concern.

 

The number of lies I’ve heard told by builders regarding lot drainage is staggering. They range from “looks like it drains to me” to “if it drains within 48 hours, it’s OK” to “our surveyor says it is just fine.” While these may, at first blush, sound like plausible explanations, they consist of nothing more than lightly-veiled bullshit.

 

I go to a lot of trouble to illustrate in my reports the problems with lot drainage on each inspection. I use a ZipLevel Pro 2000 leveling instrument that is accurate to ±1/8″ over 100 linear feet and costs about $800. Often, builders will supplant the facts in my reports with their typical BS, and the home buyers fail to insist that the grading be improved. Just as often, the builder will claim to have made improvements when none were made. How can one verify this without paying me to return to the site?

 

Simple. Measuring Yard Slope- Ludwig. Do your due diligence.

Schneider ElectricTM Recalls 1.4 Million Electrical Panels Due to Thermal Burn and Fire Hazards

Jun 17, 22 • News

 

Check your electrical panel to see if it is one of these:

https://www.cpsc.gov/Recalls/2022/Schneider-ElectricTM-Recalls-1-4-Million-Electrical-Panels-Due-to-Thermal-Burn-and-Fire-Hazards

 

IMPORTANT UPDATE – 1/23/23

I have encountered 40 new homes under construction with these panels since publication in June of last year. Of those, 30 of those builders claimed no responsibility for replacing the panels. Typical corporate builders in redneck Texas.

Code Violations and Callbacks for Texas Builders

May 29, 22 • News

New home construction keeps on getting worse by the day. This fact is made crystal clear by the 2019 Common Code Noncompliance Report issued by the National Association of Homebuilders in conjunction with the International Code Council. The survey is based on information gathered from respondents, primarily municipal building officials tasked with enforcing building codes in their jurisdictions.

 

In this publication, it states, in part, “All types of new homes with code violations have significantly increased compared to the last survey. A considerably higher number of respondents found all types of new construction to have code violations (over 60%).

 

This is an upward trend of over 17% from the highest respondent code violation of 2012 (44%) to the lowest respondent rating of code violation in 2018 (61%).  New construction of high-end (expensive) homes was also significantly higher (88%) than in the 2012 survey (35%).

 

In my experience, the number of violations has increased drastically since this report was published using 2018 data. I will use some of the information from the report and augment it with what I actually see in my day-to-day inspections.

 

Missing Documentation

Those of us who are cognizant of our surroundings, can take sustenance, and stand upright, realize that plans are essential in building houses. Texas builders, with almost no exceptions, refuse to leave copies of the building plans onsite. The International Residential Code clearly states that these must be kept onsite throughout the build process.

 

The code is adamant for a good reason. Without the recipe and with so many cooks in the kitchen, the pudding will be a disaster. Communication between the trades cannot happen without a unified plan of action. Everything falls between the cracks.

 

The builders here cry “copyright” when asked to see the plans. Any attorney will advise you that copyright is not breached by simply holding, reading, and referring to a set of building plans. If this were the case, books of every kind would cease to be available for reading. Referring to a set of plans falls under the doctrine of fair use.

 

If the DFW building officials would simply issue stop orders on all of the properties under construction that did not have the plans onsite, things would rapidly change.

 

If you are building a new house, one of the first things you should do is contact the municipality and request a full set of plans for your house under the open records act or the Texas Freedom of Information Act. They will then have ten business days to provide these to you, usually at no cost.

 

 

Grading and Drainage

DFW lies in the land of expansive clay soils. These undulating soils contain minerals that expand and contract significantly due to moisture content. It follows that a shallow slab-on-ground foundation will be affected by the movements of the soils upon which it is built. Maintaining even soil moisture in a 10-foot wide swath around the perimeter of any building’s foundation will help to stop differential movement and damage.

 

This can only be achieved by having positive drainage around the foundation perimeter. This is achieved by grading the soil to slope downward at a rate of 6 inches in the first 10 feet out from the slab edges. Very simple to do, just not for Texas builders.

 

 

Improperly Placed Anchor Bolts

The walls of the first floor of a house are connected to the foundation by embedding bolts in the concrete when it is poured and then attaching the bottom plates of the walls to these bolts with nuts and washers. The code requires certain sizing, spacing, location, and galvanization of these bolts.

 

Texas builders can be depended upon to pay absolutely no attention to such mundane details. Like making sure the walls stay attached to the foundation in periods of high winds, you know.

 

 

Braced Wall Errors

Wall bracing keeps the walls of the house from racking during wind events. The code provides many methods to achieve this. Texas builders must have missed that class. Oh, wait, Texas builders are not required to attend any classes of any kind. WTF was I thinking?

 

 

Improperly Sized and Installed Joists and Beams

Joists and beams are horizontal structural elements of a house that ceilings, wall openings, and floors consist of. If undersized or improperly installed, they will not perform their intended function. This results in drywall cracks in the ceilings and floors that squeak. Your builder won’t be living in your house, so what does he care about insignificant cracks and squeaks anyway?

 

 

Deck Ledgers and Braces

After 47 years, I have yet to see a home builder or contractor build a deck that is code compliant.

 

 

Stair Rise/Run Errors

Stairs are poorly constructed on almost every house. Subconsciously, one anticipates the rise (height between steps) of stairs to be uniform. When they are not, people slip and fall.

 

 

Stair Handrails and Guardrails

Handrails are there to give one something to stop their fall should they lose their footing on the stairs, like when the risers are wrong. These rails must be installed in a manner to make them useful in an emergency. Many are not.

 

 

Missing or Inadequate Fire Blocking

Fireblocking provisions slow the spread of fire should a house be subjected to one. Usually, these details are wrong or missing altogether.

 

 

Air-Barrier Gaps

Keeping houses from leaking air is both a desirable goal and a code requirement. Air sealing is a hit-or-miss sort of game for Texas builders.

 

Exposed Kraft-Faced Insulation

Despite the labeling on kraft-faced insulation batts, Texas builders install them backward with the kraft face away from the drywall. This is a fire hazard that your Texas “builder” could not care less about.

 

No Gutters

Specify a quality gutter system. An inch of rain on a 2,000 square-foot roof produces 1,200 gallons of water. The gutter is the best line of defense against this wall of water.

 

The Bad News

The bad news is that this is a very abbreviated list of items I find daily. The actual list, not the one tweaked by the National Association of Home Builders to improve the optics, would be at least 10 times this long.

 

 

 

 

 

 

 

 

Deck Safety Month

May 4, 22 • News

May is Deck Safety Month. Check out this NADRA_DSM_Checklist from the North American Deck and Rail Association. Aaron is the only Certified Deck Inspector in the State of Texas.

Remodeling Advice

Mar 14, 22 • News

The DFW area population is increasing at a phenomenal rate. The 2010 Census counted 6.3 million residents. The 2020 count indicates we had 7.6 million. The math reveals that is equivalent to adding 328 people per day, consisting of 205 net move-ins, and 123 via births minus deaths. The Census effective date was April 1, 2020. If the rate has remained relatively consistent, we can safely add at least another 230,000 counting to the date of this writing. So, 7.8 million and rising. For comparison, this figure was 960,000 when I was born here. Ouch!

 

Since the end of 2020, the housing market has become less and less predictable. In the DFW area, resale prices have soared to a median price of $401K, while the inventory of homes for sale has dropped 42.39% in just two years.

 

Anyone in the market for a house is faced with no good choices. With resale homes in short supply, buying one has become tantamount to being in an auction where the one with the most discretionary income wins. New home prices have also skyrocketed. Builders are essentially auctioning the right to wait in line for a contract. Further, they write open-ended contracts regarding price and insert cancel for convenience clauses that will set your hair ablaze.

 

Many of us have decided to hunker down in our old digs since we cannot possibly afford to both sell and buy in the DFW area. And with the home values rising, fixing up the old place may make more sense than moving anywhere else.

 

The Harvard University Joint Center for Housing Studies (JCHS) recently released statistics regarding the remodeling activity anticipated for the DFW area in the coming year. Research indicates that remodeling projects will increase in our area 10%-15% this year alone. You may have already seen the uptick in activity in your own neighborhood. I certainly have in mine.

 

Those of you who have ever been involved in a remodeling project are already aware of the stressors involved. Deciding on the project scope, finding a designer, vetting a general contractor, planning, moving things to storage, eating out or ordering in, dealing with insolent contractors and workers, noise, dust, more noise, and dust . . . argh!

 

Home renovation activity brings with it gut-wrenching, teeth-gnashing, hair-shredding, blood-pressurizing stress. It wreaks havoc on one’s daily routine.

Those who have been there wonder why anyone would ever do this, let alone do it again. It’s a bit like getting a very pricy tattoo.

 

All that said, if you find yourself inching up to the edge of this particular abyss, there are ways to mitigate some of the terrors. Let’s take a look at what can be done to keep you somewhat sane throughout the process.

 

1. First, hire an attorney. Remodelers, like builders, are not regulated in the State of Texas. The contracts they use for their projects are, for the most part, promulgated by attorneys for the homebuilding industry. These are not written with even a whiff of consumer protection in mind. Sign one of these unwittingly, and you may live to regret it. An attorney can help you get your head around the legal issues involved, most of which you are totally unaware of.

 

There are many pitfalls that you will not recognize before you find yourself falling into them. Contract clauses regarding force majeure, price escalation, et al. You will also need to be aware of the importance of focusing on a clear and defined scope of work, limitations of liability, indemnities, payment terms, the certainty of terms, warranties, change order mechanisms, termination for convenience, dispute resolution, etc. It is a long list.

 

So then, consult with an attorney. But not just any attorney. The law, like medicine, is a field awash with specialization. The attorney you use for your family needs, or even the one who handles your business activities, is more than likely not the one you want for your abyss project. You need one that is board-certified in construction law. This is a rapidly growing niche due to the lax Texas laws regarding builders and remodelers and the near-total lack of skilled tradespeople.

 

2. Hire a professional inspector for expert oversight of the project. Contractors are most familiar with the concepts involved in making a profit. They consider safety issues like the building and electrical codes to be little more than minor irritations. The municipal inspectors tasked with oversight are undermanned, overworked, underpaid, and often uneducated in building codes. You cannot rely on them to ensure the quality of your project.

 

Once again, we understand that you must hire a competent inspector. But, just as with the attorney, not just any inspector will do. Home inspectors licensed by the Texas Real Estate Commission are not qualified to do this work by design. They are not required to know the building codes. They are not required to have any significant construction background. Do not go there.

 

You can hire an engineer, but not just any engineer. It must be a civil engineer specializing in single-family detached buildings who is also certified in the building codes. I have yet to meet one of these, so good luck.

 

You need someone who is certified by the International Code Council (ICC), the agency that authors the building codes. That would be an ICC Residential Combination Inspector. These inspectors are certified specialists in residential building, mechanical, plumbing, and electrical inspections. Do not settle for less.

 

If your project is outdoors, such as landscaping, outdoor kitchens, decks, etc., consider a licensed landscape architect and/or a certified professional deck inspector.

 

3. Once you have the attorney and inspector in place, you’ll need to find a competent contractor. This is the most difficult of the tasks set forth for you. There is no tried-and-true way to vet these creatures. The best that one can do is follow this route as closely as possible.

 

Use a search engine such as one at the National Association of the Remodeling Industry. Do not use any of the plethora of Internet search options like Angi, Houzz, Home Advisor, Pro Referral by Home Depot, GildQuality, Thumbtack, BuildZoom, et al., unless you want to either end up hiring or be spammed by low-end handymen for the rest of your natural life.

 

Some sites may be helpful if you are discerning enough to separate shite from shoe polish, such as Yelp, Ripoffreport.com, Contractorsfromhell.com, Joetheplumber.net, Homeownersforbetterbuilding.com, and others. Other sites like the Better Business Bureau are just a scam.

 

Reviews on Google and the like are from homeowners who may not even know their remodelers ripped them off. This also applies to your friends, family, coworkers, etc. Laypersons are not the ones to ask about professional contractors. These sorts of reviews might be OK to mull over along with all of the other considerations but are not to be much relied upon.

 

Your attorney can do a deep dive into any contractors you are considering to ascertain if they have a long rap sheet of litigation, bankruptcies, company name changes, and other unsavory dealings.

 

Then there is the sweat equity. This is crucial. You will need to be completely immersed and focused on the project throughout. This means meticulously perusing all documents, plans, and materials lists. Take a million photos and videos of the site before, during, and after (assuming you survive until the end).

 

Ensure that all communications between you, the contractor, and his subcontractors, as well as any municipal inspectors involved, are in writing. Use a digital recorder to capture conversations that cannot be written. Consider placing video cameras on the site when feasible. Keep a detailed timeline of all that occurs. In short, cover your derriere.

 

Last, there are certain groups of general contractors to be aware of. One, I like to refer to as the Favorite Sons. An example would be a trust fund baby who graduates from SMU, lives in the Park Cities, Preston Hollow, or North Dallas area, utilizes daddy’s contacts, is otherwise unemployable and holds himself out to be a builder or contractor.

 

The other group consists of the Favorite Sons Wannabes. These will use company addresses located at mail drops in just the right zip codes. They may appear to be in Highland Park Village, Preston Center, etc., when they actually are working from an apartment in Oklahoma or a trailer house in the sticks of East Texas.

 

To recap: Hire an attorney, hire an inspector, vet your contractor, do your due diligence in that order. If you follow these simple steps, you will likely get through the minefield unscathed and live to enjoy your newly renovated hacienda. Best of luck to you!

And, did I mention, I do this sort of inspection work?

 

A Few Possibly Helpful Links:

 

Attorneys (Check these, but ask me for a reference)

https://www.tbls.org/findlawyer-results

 

https://www.tbls.org/specialtyarea/CO

 

Contractors

https://remodelingdoneright.nari.org/Find-a-NARI-Professional-Remodeler/Find-a-Professional-Remodeler (for General Remodeling)

 

https://www.nadra.org/membership/directory/builders#!directory/map (for Decks and Outdoor Construction)

 

Inspectors

https://support.iccsafe.org/?ht_kb=how-can-i-look-up-certified-professionals (for General Remodeling)

 

https://www.nadra.org/membership/directory#!directory/map (For Decks)

 

 

 

 

 

 

You Need to Have Your New Home Foundation Inspected

Mar 8, 21 • News

If you are having a new home built and are considering retaining the services of a professional third-party inspector to oversee the construction of your home you need to read this.

 

Arguably, the most important part of any structure is the foundation. It supports everything else that you refer to as a house. Many new homebuyers forego having a third-party inspector inspect the building site prior to the placement of the concrete in their foundation for many reasons:

 

  1. They are unaware that this is important.

 

  1. Their builder convinces them that this is unimportant or maybe even not allowed.

 

  1. They are attempting to save money.

 

All of these are poor excuses. Let’s talk more about this in order to help provide you with a clear path for doing due diligence.

 

The Texas Engineering And Land Surveying Practice Acts And Rules  Concerning Practice And Licensure, published by the Texas Board Of Professional Engineers And Land Surveyors constitutes Texas State law and is to be found in the Texas Administrative Code, Title 22. In this document you will in 137.55(a):

 

“(a) Engineers shall be entrusted to protect the health, safety, property, and welfare of the public in the practice of their profession. The public as used in this section and other rules is defined as any individual(s), client(s), business or public entities, or any member of the general population whose normal course of life might reasonably include an interaction of any sort with the engineering work of the license holder.”

 

All Texas residences must be constructed in strict accordance with the International Residential Code (IRC) in The Texas Administrative Code Title 16 in rule 70.100(d).

 

In IRC 101.3 it states:

 

“R101.3 Intent. The purpose of this code is to establish minimum requirements to safeguard the public safety, health and general welfare through affordability, structural strength, means of egress facilities, stability, sanitation, light and ventilation, energy conservation and safety to life and property from fire and other hazards attributed to the built environment, and to provide safety to fire fighters and emergency responders during emergency operations.

 

In IRC R401.2 we find:

 

“Requirements. Foundation construction shall be capable of accommodating all loads in accordance with Section R301 and of transmitting the resulting loads to the supporting soil. Fill soils that support footings and foundations shall be designed, installed and tested in accordance with accepted engineering practice.”

 

If you’re still with me after all that, you may realize that the laws of the State of Texas require that engineers design and builders build foundations that actually perform as intended even on the expansive soils in Texas. If we are in agreement, then let’s continue.

 

It is a verifiable fact that Texas has the third most foundation failures in the United States. See:

 

https://www.groundworkscompanies.com/about/articles/top-us-cities-with-foundation-issues/

 

This was also recently reported by WFAA here:

 

https://www.wfaa.com/mobile/article/money/business/right-on-the-money/problems-on-top-of-problems-home-foundation-issues-in-texas/287-f871a245-8bb7-4368-b4e2-9509a1756f92

 

Pardon all the reference material. It is necessary because most folks will not lend credence to the knowledge I’ve gained in the past 45 years as a builder and inspector. But, if it is on the Internet or on TV, it must be true . . .

 

So, why are these foundations failing if they are properly engineered and constructed? They are under-engineered and improperly constructed in almost every case. Can you now see why it might be at the top of one’s list to have a trained eye observe the formwork prior to placing the concrete in your new foundation? If not, stop here and go play with your Lincoln Logs or whatever it is you do to pass the time.

 

Now that you are aware, let’s talk about your builder. Builders know that the foundations are half-assed and do not want an experienced inspector looking at them. To prevent this they have several ruses they employ:

 

  1. Tell the homeowner he cannot have the foundation inspected.
  2. Tell the homeowner that only an engineer can inspect it.
  3. Tell the homeowner that he can have the foundation inspected but he will not make any repairs unless the municipal inspector says so.
  4. Tell the homeowner he can have the foundation inspected and then not tell him when he is pouring the concrete so that it cannot be inspected.

 

This is only a partial list. The complete list is v-e-r-y long, much like the IRS tax code or the list of feckless excuses produced by any teenager regarding whatever you expect them to have done. Adolescent, but in the case of most homebuyers, quite effective.

 

If you are having a house built in the DFW area it is guaranteed to cost you more than $250,000. In order to save a few hundred dollars on a proper inspection does it make sense to put your entire quarter million dollar investment at risk? I think not.

 

If you think your builder’s “warranty” will protect you – think again. All of them state that structural damages – foundation problems – are not covered unless the house is so badly damaged that it is no longer habitable. You know, like if Godzilla rose up from beneath it and ate the inhabitants.

 

Do not depend on your homeowners insurance policy to cover you either. None of them cover foundation problems. Why? Because they are fully aware that the foundations here are under-engineered and fail on a spectacular scale.