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Overview
Protecting Your Commercial Property Investment in Las Vegas
When you invest in commercial real estate in Las Vegas, you expect developers, architects, and contractors to deliver a structurally sound and code-compliant building. Whether you own a retail center, office building, warehouse, or hospitality venue, construction defects can bring your business operations to a grinding halt. Faulty workmanship, poor design, or the use of substandard materials not only compromise the safety of your property but can also lead to massive financial losses through business interruption and expensive forced repairs.
Resolving commercial construction defects in Nevada involves navigating complex contracts, multiple layers of corporate liability, and aggressive insurance companies. Unlike residential claims, commercial property disputes often require addressing lost revenue and highly specialized industry regulations. To protect your enterprise and hold the negligent parties accountable, you need the guidance of an experienced Las Vegas commercial construction defect lawyer.
At Paul Padda Law, we are committed to helping Nevada business owners and investors secure the financial recovery they need to repair their properties and protect their bottom line.
Why Hire Paul Padda Law for Your Commercial Property Dispute
Commercial construction defect cases require an aggressive and highly strategic legal approach. At Paul Padda Law, we understand that time is money for your business. Our experienced legal team knows how to dissect complex construction contracts, collaborate with top-tier structural experts, and pinpoint exactly where the failures occurred.
Attorney Sri Shah and our dedicated legal professionals bring years of highly respected litigation experience to Nevada courtrooms. We take on the heavy lifting of dealing with negligent developers, subcontractors, and their insurers so you can focus on running your operations. If your commercial property has been compromised by substandard construction, call Paul Padda Law today at (702) 707-7000 and let us help you assess your legal rights.
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- Paul Padda, J.D.
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Table of Contents
Commercial Construction Contract Provisions That Give Rise To Defect Claims
There may be other provisions in a commercial property construction contract that can give rise to additional claims for construction defects but failing to perform as specified in the following two provisions are often the reasons given for claims of construction defect.
- Scope of the work – This provision details the work to be performed, the expectations of how the work will be completed, time periods for completion, and may specify what is to be done if certain circumstances arise – including defects.
- Warranty – Warranty provisions are guarantees about the work being done and the condition of the completed project. Warranties are for a limited duration and cover only specified things.
Types Of Commercial Property Construction Defect Claims
Some commercial construction defects will be identified while the construction is still going on. Others may not be discovered until weeks, months or maybe even years after a project has been completed.
- Patent defects are those that are open and obvious or reasonably able to be discovered.
- Latent defects are those that are hidden or concealed and not reasonably discoverable.
Time Limits To Bring A Commercial Property Construction Defect Claim
Commercial property construction defect claims may be subject to several time limitations depending on the type of injury that gives rise to the claim. The Nevada Revised Statutes (NRS) limit the amount of time a person has to make certain claims.
- Claims for damages caused by construction defects can be made for 10 years after the construction has been substantially completed.
- If a construction defect claim arises from a contract violation, an action based on the contract must be brought within 6 years of the last transaction or payment on the contract.
- Claims for personal injuries resulting from construction defects must be brought within 2 years of the injury.
It’s important to find out any time limitations that may affect your ability to file a claim as soon as possible after learning you have a claim.
Application Of The Economic Loss Doctrine
Most states, including Nevada, apply the economic loss doctrine. The economic loss doctrine says that when you’ve only lost money you can’t sue someone for negligence (but you could sue under a breach of contract theory). To recover for negligence there must be personal injury or property damage claimed.
In commercial construction defect cases, Nevada has followed the economic loss doctrine when negligence claims are made but the losses are only financial.
The Nevada Supreme Court has determined the economic loss doctrine applies specifically to commercial construction design professionals. In Terracon Consultants vs. Mandalay Resort, the Supreme Court ruled that services provided by design professionals related to commercial construction cannot be the basis for a negligence claim when the claimed loss is purely economic.
Avoiding Commercial Property Construction Defect Litigation
Even if you win your commercial property construction defect lawsuit, it can be a bittersweet victory. Having to deal with the damage and repair slows progress on the project. And a lawsuit requires time and energy you would rather put toward other things.
Landowners who build nonresidential properties are not given the same protections as residential property owners under Nevada law. There is a presumption that those who build commercial structures have access to and are working with the professionals who can give them the information they need to protect their own interests.
Thus, it becomes important to make sure commercial property construction contracts are clearly written and spell out exactly what is expected so that neither party misunderstands nor acts contrary to the expectations of the other.
A lot of construction defects occur due to contract language that is vague or could be understood in different ways. Making sure your contract clearly spells out what is expected and what will not be sufficient can help avoid an unnecessary construction defect and the time and expense that go along with it.
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Frequently Asked Questions About Commercial Construction Defects in Nevada
What is a commercial construction defect?
A commercial construction defect is any flaw in the design, materials, or workmanship of a non-residential building. In Las Vegas, this includes structural failures, plumbing leaks, or electrical hazards in retail centers, office buildings, warehouses, or hospitality venues that violate building codes or fail to meet professional standards.
How long do I have to file a commercial construction defect claim in Las Vegas?
Nevada imposes strict legal deadlines known as statutes of limitations and statutes of repose. You typically have a maximum of ten years from the project's substantial completion to file a lawsuit. However, these deadlines can be significantly shorter depending on when you actually discover the specific defect. You must consult a legal professional immediately to protect your claim.
Can I recover lost business income in a commercial property defect lawsuit?
Yes. Unlike residential claims, commercial property disputes often allow you to seek compensation for business interruption. If faulty construction forces you to close your doors, relocate, or halt operations to complete repairs, you can pursue legal damages for your lost revenue.
Who can be held liable for construction defects in a commercial building?
Multiple parties can share liability in a large-scale commercial project. This includes the general contractor, specialized subcontractors, architects, structural engineers, and the manufacturers of defective building materials. An experienced attorney will thoroughly investigate the project to hold all responsible parties financially accountable.
Do commercial property defect cases go to trial?
Many commercial construction defect claims are successfully resolved out of court through negotiated settlements or mandatory mediation. However, if the at-fault contractors or their insurance companies refuse to offer a fair financial settlement, your legal team must be fully prepared to take the case to trial in a Nevada courtroom.
Does my commercial property insurance cover construction defects?
Commercial property insurance policies typically exclude coverage for damages caused directly by poor workmanship, builder negligence, or defective design. Because your own insurance provider will likely deny the claim, you must pursue aggressive legal action against the negligent builders or developers to recover your repair costs.
Why do I need a lawyer for a commercial construction defect claim?
Commercial defect claims involve complex corporate contracts, massive financial stakes, and teams of aggressive defense lawyers representing the developers. You need a skilled Las Vegas law firm like Paul Padda Law to navigate the highly technical legal process, manage industry expert witnesses, and fight to protect your business investment.
Contact A Commercial Property Construction Defect Attorney At Paul Padda Law
At Paul Padda Law, our attorneys have significant experience handling construction defect cases. These are often complicated cases requiring the selection of appropriate experts that can help make a strong case in your favor. If you’re looking for outstanding construction defect attorneys, especially where a commercial property is involved, you need to call Paul Padda Law today. Call us today at (702) 366-1888 or get in touch with us through this website.