Managing your residential construction project

the rules for the performance of the work — that is, you need a contract. At a minimum, a written contract should cover the project’s cost, scope and timing. Changes during the life of the project should be documented in a written change order. This helps alleviate surprises at the end.

When the project is done, do you have a warranty that the work will be as expected? Minnesota Statutes Chapter 327A provides warranties that cover essentially any new dwelling or major home improvement project. The warranty period depends on the type of alleged defect.

A builder must warrant that during a one-year period, the dwelling is free from defects caused by faulty workmanship and defective materials due to noncompliance with building standards. There is a two-year warranty that covers defects caused by faulty installation of plumbing, electrical, heating and cooling systems. And there is 10-year coverage that warrants that the dwelling is free from major construction defects — that is, actual damage to the load-bearing portions of a dwelling.

Minnesota Statutes also cover home improvement work involving major structural changes or additions. The home improvement warranty periods mirror those covering newly constructed homes — a one-year period for defects caused by faulty workmanship and defective materials, a two-year period covering the installation of plumbing, electrical, heating and cooling systems, and a 10-year period covering major construction defects.

The goal for everyone should be to avoid disputes, but what if there are disputes related to the work? Outside of litigation, Minnesota has a statutory home warranty dispute resolution process. With some exceptions, Minn. Stat. § 327A may require homeowners and contractors to employ the dispute resolution process before proceeding to litigation. The dispute resolution process is administered by the Minnesota Department of Labor and Industry.

Choosing a qualified contractor, communicating clearly, and understanding the parties’ contractual responsibilities all go a long way toward ensuring a successful construction project. If you are mindful of these concerns, you can be confident that you have done everything possible to ensure that your project will be a success. D

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