What to Do When You Discover Defective Construction Work in Illinois

You hired a contractor to build it right. Now something is wrong, and the longer it goes unresolved, the more expensive it becomes.

Discovering defective construction work is frustrating, but what you do in the days and weeks after you find the problem matters as much as the defect itself. Sometimes, defects occur when a builder cuts corners or fails to meet the expected standards of workmanship set by the contract or industry norms. Early steps, and the mistakes you avoid, can determine whether you have a strong construction defect claim in Illinois or an expensive lesson.

Types of Defects in Construction Projects

Construction defects generally fall into three categories, and the distinction matters because it affects who is responsible and what claims are available:

• Defective design: The architectural or engineering plans contain errors or omissions. If the design is flawed, even the best workmanship and materials will not prevent problems. Design defects can lead to structural issues, poor functionality, or non-compliance with building codes.
• Defective workmanship: Errors or poor practices during construction. Examples include improper framing, incorrect installation, failure to follow plans and specifications, or work that does not meet the skill and quality expected in the trade.
• Defective materials: Substandard or faulty materials that fail prematurely, even when the design and workmanship are sound.

Defects are also categorized as patent or latent. Patent defects are obvious and detectable through a reasonable inspection - a cracked wall, uneven flooring, a misaligned door. Latent defects are hidden and may not surface for months or years, such as waterproofing failures behind finished walls or foundation settlement caused by inadequate soil preparation. Latent defects are typically the ones that generate litigation, because they are discovered after the owner has already accepted the work and the contractor has moved on.

The 4 Steps After Discovering Defective Construction Work

Do Not Start by Hiring Someone to Fix It

This is the most common and most costly mistake property owners make. The instinct is to get the problem fixed as fast as possible, especially if it is affecting the building's use, value, or safety. But bringing in another contractor to tear out and redo defective work before the original contractor has had a chance to inspect it, and before the defect has been thoroughly documented, can seriously damage your legal position.

Once the defective work is removed or covered up, it becomes much harder to prove what went wrong, who caused it, and how much damage resulted. If you end up in litigation or arbitration, the other side will argue that you destroyed evidence they needed to evaluate the claim.

Unless the defect creates an immediate safety hazard, the better approach is to document the problem thoroughly, notify the responsible parties in writing, and give them an opportunity to inspect before any repairs are made.

Document Everything Immediately

The strength of a defective work claim depends heavily on documentation, especially for latent defects that may not be visible without expert evaluation.

What to document:

• Photographs and video of the defect from multiple angles
• Written descriptions of what you are seeing, the nature of the defect, and when you first noticed it
• Details about the workers involved, including whether poor workmanship or failure to follow specifications may have contributed to the defect
• Copies of the contract, specifications, change orders, and communications about the work
• Inspection reports, daily logs, or expert evaluations if available
• Evidence regarding whether quality materials were used as specified in the contract

If the defect involves something that is not visible, such as structural failures behind walls, waterproofing problems below grade, or mechanical system deficiencies, you may need a qualified engineer or inspector to evaluate the problem and document findings before remediation begins.

The goal is to create a clear record that connects the defect to a specific failure in workmanship, materials, design, or code compliance. That connection is what turns a complaint into a claim. In our experience, the documentation gap is where most construction defect claims fall apart - not because the defect was not real, but because the evidence was not preserved before repairs began.

Notify the Responsible Parties in Writing

Written notice serves two critical purposes.

First, it creates a clear record that you identified the problem and communicated it. Second, many construction contracts require the owner to provide written notice of defects within a certain timeframe as a condition of making a claim. Illinois law may also require notice and an opportunity to repair before filing a lawsuit in certain residential construction cases. The project owner is responsible for ensuring that this notice is properly given according to the contract and applicable law.

The notice letter should:

• Describe the defect in reasonable detail
• Reference relevant contract provisions or specifications
• Request that the contractor inspect and remedy the problem within a reasonable time

A construction lawyer can help your case by providing advice on handling disputes before they escalate to legal action.

Keep a copy of everything you send. Certified mail or trackable delivery is recommended.

Some contracts and statutory provisions condition your right to sue on giving this written notice and an opportunity to repair before litigation begins. Failing to follow those requirements can limit or eliminate your claim. If notice and opportunity to repair do not resolve the issue, the next step may be to pursue litigation.

Understand Who May Be Responsible

Construction projects involve multiple parties. These can include general contractors, subcontractors, architects, engineers, and material suppliers. Homeowners are often the parties most affected by construction defects, as these issues can directly impact the value, safety, and usability of their property.

Although the general contractor typically has primary responsibility to the owner under the contract, the defective work may have been performed by a subcontractor. The subcontractor may blame the design professional. A supplier may have provided defective or improperly rated materials. Construction defect claims can be complex and may involve multiple defendants, including insurance companies.

Determining responsibility requires:

• Identifying the source of the defect
• Reviewing the contract documents and specifications
• Examining warranties and potential insurance coverage

We regularly represent both property owners pursuing construction defect claims and contractors defending against them in Illinois. An experienced construction defect attorney can help identify all potentially responsible parties and determine whether insurance policies may cover the loss.

Know Your Deadlines: Statute of Limitations and Statute of Repose

Illinois imposes strict time limits on construction defect claims under 735 ILCS 5/13-214. Missing these deadlines can bar your claim entirely, regardless of how strong it is. The statute has two parts that work together, and the way they interact is frequently misunderstood.

The statute of limitations gives you four years to file a claim from the date you knew or reasonably should have known about the defect. If the defect is patent or apparent based on reasonable inspection, the limitations period runs from when it was or should have been discovered. The statute of repose sets a ten-year window from the date of the act or omission, after which no new defects can give rise to a claim. If the defect is latent and not readily apparent, any action to recover damages generally must still fall within the ten-year repose window. But the repose period functions as a discovery deadline, not a filing deadline. The statute specifically provides that anyone who discovers a defect before the ten-year period expires has no less than four years to bring an action.

That means the effective outer limit for filing a construction defect claim in Illinois is fourteen years, not ten. Here is how it works in practice:

• Defect discovered in year 3 - the owner has until year 7 to file (four-year limitations period from discovery)
• Defect discovered in year 8 - the owner has until year 12 to file, because the statute guarantees no less than four years from discovery
• Defect not discovered until year 11 - the claim is dead. The defect was not discovered within the ten-year repose window, so there is nothing to trigger the four-year limitations period

One other important nuance: repair or corrective work on a prior improvement does not reset the ten-year repose period. A contractor coming back to patch a problem does not restart the clock.

If you discovered defective construction work, do not delay in seeking legal guidance. These deadlines continue to run even while you are negotiating with the contractor or waiting for repairs.

What a Defective Work Claim Can Recover

A successful construction defect claim can recover:

• Cost to repair or replace the defective work
• Consequential property damage - harm the defect caused to other parts of the building or to personal property
• Financial compensation for damages resulting from construction defects or breach of contract
• Lost rental income or business revenue if the property became unusable
• Temporary relocation costs or alternative accommodation expenses in appropriate cases
• Diminution in property value where applicable

Claims may also include damage to other property, meaning nondefective portions of the project or third-party property that suffered harm as a result of the defect, not just the defective work itself.

The measure of damages depends on the extent of the defect, whether repair is feasible, and what the contract says about remedies and limitations.

The standard insurance policy expected to respond to construction liability risks, including defective construction claims, is the commercial general liability (CGL) policy. CGL policies for contractors may be available in different forms, including occurrence-based and claims-made policies. Insurers have asserted that a CGL policy is intended to cover only damages from a contractor's defective work, not the contractor's defective product or work itself. Whether a construction defect qualifies as a covered occurrence under a particular CGL policy often depends on the specific policy language and Illinois case law. Understanding your insurance coverage early in the process is critical, because it can affect both the strategy and the potential recovery in a defective work claim.

Some contracts cap contractor liability or require disputes to be resolved through arbitration instead of litigation. Others may include warranty provisions or mediation requirements. Reviewing your contract early helps determine what recovery options are available and what dispute resolution procedures apply.

When Contractors Are Wrongly Blamed

Defective work claims are not limited to property owners. Contractors and subcontractors often face claims for problems they did not cause.

Conditions that may appear to be defective work include:

• Owner-directed design changes
• Design errors by architects or engineers
• Interference or sequencing issues caused by other trades
• Manufacturer defects in materials
• Normal wear and tear

Contractors are generally required to perform their work in a workmanlike manner, meaning with the skill and quality expected in the trade. Sometimes, what appears to be defective work may actually result from issues outside the contractor's control.

If you are a contractor facing a defect claim, preserve your documentation immediately. This includes daily logs, inspection records, photographs, communications about design changes, and evidence showing compliance with specifications and building codes.

Thorough documentation is often the difference between liability and dismissal.

More on Construction Defect Causes and Resolution Options

Construction defects may arise from poor workmanship, code violations, design errors, drainage problems, structural deficiencies, or material failures. Construction defect cases often involve causes of action such as breach of contract and negligence, and both statutory and common law frameworks govern the obligations of contractors and the rights of property owners.

Construction disputes in Illinois may be resolved through negotiation, mediation, arbitration, or litigation, depending on the contract terms and the complexity of the claim. Developing a remediation or repair plan collaboratively can resolve defective work claims effectively. However, if collaborative efforts fail, parties may need to pursue litigation to resolve the dispute.

For more on how construction disputes are resolved, see our related article: How Construction Disputes Are Resolved in Illinois: Negotiation, Mediation, Arbitration, and Litigation. For additional information about pursuing or defending a construction defect claim, visit our Construction Defects practice area page.