Litigation control is a program designed to mitigate future claims by targeting specific activities of work that historically drive the defect claim process. The target activities, generally considered “The Big 5” include the following: concrete; framing; exterior cladding (stucco, siding, masonry, etc.); windows/doors; roofing. Other activities of work are important as well, but statistics show that “The Big 5” account for 70% plus of alleged defect repair costs.
By targeting the largest claim dollar items, we reduce plaintiff’s expectations and conversely, protect the insurance carriers and contractors with SIR obligations.
PBC performed this service on Phase 2 (18 buildings) of a condominium project. When litigation occurred, Phase 1 claims (work not reviewed by PBC) were approximately $9 million, while Phase 2 claims were approximately $1 million.