General Information
Building or remodeling a home is an exciting experience, the
culmination of many months or years of planning and expectations.
The building/remodeling process is complex, often extending over a
substantial length of time and involving many different individuals
- subcontractors, suppliers, lenders, etc. Even the best written
contracts, specifications and plans leave room for legitimate
interpretational differences. Additionally, differences of opinion
during the construction or warranty period may arise.
If a mutually satisfactory solution to a problem cannot be
reached between the buyer and the contractor, either party may
begin a civil lawsuit, which normally involves a significant amount
of time, energy, money and frustration. In an effort to reduce all
of those factors, Valley Home Builders Association offers its
resources and technical knowledge to assist in resolving
construction-related disputes.
VHBA offers assistance to consumers involved in
construction-related disputes with association members. However,
the association will NOT address complaints pertaining to:
* Monetary disputes under $5,000 (Cases such as these can
utilize the Small Claims Court system)
* Libel
* Medical issues
* Construction quality issues occurring more than 12 months after
the initial occupancy of new construction or accepted completion of
a remodeling project
Before providing assistance, the association confirms that
conditions of the Right to Repair law have been met.
Valley Home Builders Association holds its members to compliance
with the WI Uniform Dwelling Code (UDC) and the VHBA and NAHB
Construction Industry Quality Standards.
Communication (Conciliation) Stage
Because the lack of communication is often the principle reason
for a construction dispute, VHBA's Executive Vice
President is available to answer basic questions about the
construction process and, if necessary, initiate VHBA's dispute
resolution procedures. When a written complaint is received by
VHBA, it is forwarded to the member that is a party to the
complaint. The member is given 21 days to respond to the owner
and/or VHBA regarding intended or completed resolution of the
matter.
Initiating communication with the member through VHBA's
conciliation stage can lead to direct resolution. However, if the
owner is unsatisfied with the member's response, s/he may request
VHBA's Complaint Form, and the formal dispute resolution process
will begin. VHBA takes no position on the claims of either party at
this stage, nor does it form opinions on the existence of
construction defects until a formal investigation begins through
arbitration and mediation.
The homeowner may choose to participate in the conciliation
stage only and not go on to pursue arbitration or mediation, as
those services carry fees.
To learn more about VHBA's dispute resolution offerings and/or
to file a complaint, please contact Executive Vice President
Christine Shaefer at 920-731-7931 or christine@vhba.com.
Mediation ($300/party)
Mediation is a rapidly growing form of alternative dispute
resolution. In this form of assisted negotiation, parties agree to
engage a neutral third party to help find a suitable voluntary
resolution. The VHBA Mediation Service was designed to assist
homeowners, builders and subcontractors in resolving disputes, both
during and after the construction process.
The mediator's primary role is to help VHBA members and their
clients settle their disputes through negotiation. The mediator's
responsibilities include information gathering, evaluation and
persuasion. He or she also maintains rules of order; moderates
discussions; helps set the agenda and makes participants feel
comfortable discussing the issues.
The mediator is a member of the Construction Arbitration Board,
selected based on the primary concerns of the dispute.
Arbitration ($500/party)
If both parties agree, the Construction Arbitration Board (CAB)
may arbitrate disputes involving matters related to building
construction utilizing procedures which comply with the Wisconsin
Uniform Arbitration Act. The procedure requires the parties, at the
submittal of the dispute, to sign an Agreement to Arbitrate under
which they agree to be bound by the decision. These procedures
provide that the ultimate decision is enforceable in court by
either party.
The CAB will only arbitrate a construction dispute where there
is a written or an oral contract between the parties. The CAB does
not process warranty complaints involving homes covered by an
insured warranty program. However, it may process contractual
complaints on those homes, which are not covered under an insured
warranty.
The Construction Arbitration Board may also handle disputes
between the builder and subcontractors or suppliers when the
dispute concerns technical performance of the contract.