Posted on: Friday, June 11, 2004
Buyer beware: Home defects inevitable
By John Handley
Chicago Tribune
CHICAGO — A brand-new house should be defect-free. After all, it's the most expensive purchase most people will make.
But as the U.S. housing boom continues, more homeowners are getting a dose of reality: Houses are handmade. It takes months, under many weather conditions, to build them. Not only are defects possible; they are probable.
The boom also has resulted in a shortage of skilled labor. And new materials and construction methods have created a learning curve for some workers.
Even in the best of circumstances, however, a new home may in its first year be afflicted with nail pops, electrical or plumbing problems, roof or window leaks and drywall cracks caused by settling and a host of other problems.
In fact, new-home buyers fill out a punch list of defects to be corrected before they move in. After that, most builders guarantee workmanship for a year.
Alan Mooney, president of Criterium Engineers, a national real-estate engineering firm based in Portland, Maine, explained why defects occur.
"Houses are built of wood, which is an imperfect material. They are built on earth, which can move, and on some sites that wouldn't have been considered 10 or 20 years ago. They are built out in the weather, not in a controlled atmosphere. They are built by people, who are not standardized or computerized. People can make mistakes."
Mooney said that nationwide, as many as 15 percent of new residences have serious defects. He said the most common defects involve roofs and water intrusion in windows and doors.
He believes that builders who rely on "just enough design" with no reserve capacity cause part of the problem. "Fifty or 100 years ago, houses were built stronger. Some houses going up today may not even outlast their 30-year mortgages," he said.
Cost-cutting measures can cause problems. "Builders in some cases don't even use enough nails. Small changes can add up to big savings for big builders," Mooney said.
He also blames consumers. "People are more demanding today. The typical buyer's expectations are much higher than 20 years ago."
So, the number of construction-defect lawsuits has increased rapidly in recent years, Mooney said.
He noted that part of the problem is that no single person monitors the construction of a house. Many crews from different trades do the work. That can result in a loss of continuity.
"In the 19th century, houses were built by master builders. Today, there is a lack of skilled craftsmen. Windows leak because they were not installed properly, not because they are defective. It's a challenge today to find skilled labor and supervisors," Mooney said.
Trade job comeback
Joe Donahoe, divisional quality assurance manager for Centex Homes and an instructor in the Construction Management Certification Program offered by the Residential Construction Employers Council, thinks the construction trades are making a comeback as a career choice.
"Construction jobs are not being outsourced to India," Donahoe said.
As for quality, he notes that "basically, houses are built today like they were 50 years ago. But they are better today because of new products, like improved windows and housewrap, which keeps out moisture and cold."
Even so, defects happen. "Nail or screw pops are unavoidable as the wood of a new house dries out," Donahoe said.
"Concrete can be problematic if it is poured when the temperature is ... above 90 degrees," said Terry Collins, concrete construction engineer at the Portland Cement Association, a trade group in Skokie, Ill.
Concrete is fluid for 24 hours, he explained, and hot weather can influence the quality by accelerating the moisture loss.
Houses will settle
"Everybody knows houses settle over time," said Dan Star, president of the Illinois division of Centex Homes. "Lumber shrinks, depending on the type and moisture content. The ground settles, depending on soil conditions and moisture.
"While the lumber used in today's homes is comparable to what was used in the past, we now use a lot of panelized walls and roof trusses that are built in a factory. These factory-built products are superior. They are installed with a crane," Star said.
He added that better controls are used in lumber yards now. "Wood is not left out in the weather as much."
One suburban home inspector maintains that potential problems can be spotted early in the building process.
"I'd look at the foundation and check the house when framing is complete but before the drywall is installed," said Don Nelson, owner of Northbrook, Ill.-based Nelson & Son Building Inspectors Ltd.
"The average home buyer doesn't know what to look for. It's too late when the buyer goes on the final walk-through," said Nelson, who is a director of the American Society of Home Inspectors, headquartered in Des Plaines, Ill.
He noted that not all the trades are up to date in how to install all of today's new building materials. "But a good construction supervisor can keep on top of the work being done by the subcontractors."
These are among the defects he sees most frequently: Missing or not secured foundation bolts, little or no caulking, open seams in ductwork and a lack of flashing above windows and doors.
"Houses built today are better than ever, but problems arise because they are much more complicated than 30 years ago," said Stan Luhr, chief executive officer of Quality Built, a quality assurance consulting firm based in San Diego.
"Today we have bigger windows, steeper roof pitches and changing products. Blueprints are more complicated and building has become more complex. But some workers lack English language skills and are unskilled," Luhr says.
He estimates that only a small percentage of new houses have serious defects. "But every one has small defects; every house has drywall cracks and concrete cracks," he says.
Luhr points out that homeowners have to distinguish between minor defects that can be fixed and major ones. .
As a result of construction defect lawsuits, the price of the average new house in the country includes $6,000 for builder insurance, according to Luhr.
Dean Potter, director of quality programs at the National Association of Home Builders' Research Center in Upper Marlboro, Md., maintains that home builders are catching up in quality issues, in part because of the competitive marketplace.
