Relating to damages in an action arising out of a deficiency in the construction or repair of an improvement to real property.
The provisions of HB1784 will influence state laws related to the liability for construction defects and the calculation of damages awarded in such cases. A notable change introduced by the bill is the reduction of actual damages by 10 percent for each anniversary of substantial completion prior to filing a claim. This adjustment may affect the compensation available to claimants and incentivize quicker claims filing, ultimately impacting the dynamics of disputes within the construction industry. The law is set to apply only to construction or repair work that begins under contracts entered into after the bill's effective date, meaning protections previously available under earlier laws will still govern existing contracts.
House Bill 1784 addresses the issue of damages in cases arising from deficiencies in the construction or repair of improvements to real property. Specifically, the bill introduces a new section to the Civil Practice and Remedies Code that defines 'construction defect' and establishes parameters for claims related to such defects. The bill stipulates that a claim can be made to recover the actual costs incurred in curing a construction defect from the original designer, administrator, constructor, or repairer, regardless of the claimant's contractual relationship with these parties. This effectively broadens the scope for individuals to seek recourse for construction-related issues.
There may be points of contention surrounding HB1784, particularly regarding the implications of the 10 percent deduction on damages over time. Stakeholders in the construction industry may argue that such a provision could limit the accountability of builders and contractors, potentially leading to lower standards in construction practices. On the other hand, proponents of the bill might argue that it creates a fair timeline for claims and encourages responsible construction practices by introducing a limit on damage claims based on time elapsed since completion. The balance between protecting consumer rights and ensuring fair liability for construction professionals will be a critical area of debate as the bill moves through legislative processes.