Lawyer fees in construction defect cases

Why is there no fixed price for a construction defect case?

Two construction defect cases are almost never alike. A case of one leak in a new apartment, which the developer acknowledges and merely delays repairing, is very different from a case of dozens of defects in the common property, which requires opinions from several experts, a court-appointed expert and cross-examinations. A uniform price would be too high for the simple case or too low for the complex one.

What affects the fee?

• The scope and type of defects. A single defect, a list of defects in an apartment, or defects in the building's common property.
• The stage the case is at. A demand letter and negotiation with the developer, or a claim already filed or to be filed.
• The parties. One apartment or a group of residents, one contractor or several defendants, such as a developer, a building contractor and tradespeople.
• The professional evidence. Whether there is already an engineering opinion, how many fields of expertise are needed, and whether a court-appointed expert is expected.
• Special legal questions. A limitation argument, a signed waiver, an arbitration clause in the contract, or an apartment bought second-hand.
• The amount of the claim and the court.

How is the fee proposal given?

1. A first conversation. You describe the defects and what has been done so far with the developer.
2. Sending initial documents. The sale contract and specification, the delivery protocol, letters and notices to the developer, photographs, and an engineering opinion if one has been prepared.
3. Review and assessment. After the review you receive an assessment of the legal position and of the suitable course of action.
4. A written proposal. The proposal sets out what the work includes and how the fee is calculated.
5. A fee agreement. If the proposal is acceptable, a written agreement is signed before work begins.

What costs are there besides the fee?

The fee is not the only expense in a construction defect case. The following are paid separately, to whoever provides the service:

• An engineering opinion. It is the heart of the case, and the engineer is paid directly. More in the guide to engineering opinions.
• The court fee. It is derived from the amount of the claim. You can calculate it with the court fee calculator.
• A court-appointed expert. When the court appoints an expert, it decides who bears the expert's fee at the first stage.
• Other expenses, such as witness fees and service of documents.

At the end of the proceeding the court may order the losing side to pay legal costs and lawyer's fees. On what is awarded in practice, see how much compensation is awarded in a construction defects claim.

What should you ask before signing a fee agreement?

• What exactly the fee includes, and what will count as additional work, for example an appeal or execution proceedings.
• Which expenses will be paid separately, and when.
• Who actually runs the case and the examination of the experts.
• What happens to the fee if the case ends in a settlement at an early stage.

Contact us for a proposal

To receive a proposal, send the initial documents or describe the defects in a conversation. After the review you will receive an assessment of the position and a written fee proposal, without obligation.