INSIGHTS & Articles

A construction defect in Texas is any deficiency in the design, materials, or workmanship of a building that reduces its value, safety, or habitability. Common construction defects in multifamily buildings include:

• Water intrusion through improperly installed windows, doors, or building envelope systems
• Failed waterproofing membranes on balconies, decks, or roofs
• Structural issues like inadequate foundation support or framing deficiencies
• Deficient stucco or EIFS (Exterior Insulation and Finish System) installation
• Improper flashing around penetrations and transitions

In Texas, construction defect claims must typically be filed within 10 years of substantial completion under the statute of repose. However, some defects may have shorter discovery periods. If you suspect construction defects in your building, consult with a construction defect attorney and forensic engineer to assess your options before the statute of limitations expires.

Stucco failures in Texas are primarily caused by moisture intrusion combined with the state’s extreme temperature fluctuations and humidity cycles. Here’s how Texas climate impacts stucco systems:

• Temperature Cycling: Texas experiences dramatic temperature swings—from freezing winters to 100°F+ summers. This expansion and contraction causes stucco to crack, allowing water penetration behind the system.
• Humidity and Rain Events: Central and East Texas receive 30-50 inches of annual rainfall. When water penetrates cracked stucco, it becomes trapped behind the system due to inadequate drainage planes or missing weep screeds.
• Freeze-Thaw Damage: In North Texas (Dallas-Fort Worth), winter freeze-thaw cycles cause trapped moisture to expand, creating spalling and delamination of the stucco from the substrate.
• UV Degradation: Intense Texas sun breaks down elastomeric sealants and acrylic stucco finishes faster than in moderate climates, accelerating system failure.
• Common Installation Errors: Many Texas stucco failures stem from contractors skipping critical steps like proper lath installation, adequate curing time between coats, or omitting drainage planes behind the stucco system—all of which become catastrophic in Texas’s harsh climate.

Most stucco failures in Texas multifamily buildings occur within 5-8 years of construction when these factors combine with poor installation practices.

Forensic testing in construction is the systematic investigation of a building to identify defects, determine their root causes, and assess the extent of damage. This invasive process involves removing portions of the building envelope to examine hidden conditions behind walls, under waterproofing membranes, and within structural assemblies.

When Forensic Testing Is Necessary:

• Pre-Litigation Assessment: Before filing a construction defect lawsuit, attorneys and building owners need forensic testing to document defects, establish causation, and quantify damages.
• Water Intrusion Investigations: When buildings experience persistent leaks, forensic testing identifies the source—whether it’s failed windows, deficient flashing, or compromised waterproofing systems.
• Pre-Purchase Due Diligence: Buyers of multifamily properties often conduct forensic testing to uncover hidden defects before acquisition, protecting their investment.
• Insurance Claims: After storm damage or catastrophic events, forensic testing determines the full extent of damage beyond what’s visible.
• Warranty Disputes: When contractors dispute warranty claims, forensic testing provides objective evidence of defects and their causes.

The Forensic Testing Process:

• 1. Visual Assessment: Forensic engineers conduct exterior and interior surveys to identify areas of concern.
• 2. Invasive Testing: Controlled removal of building components (stucco, siding, drywall) to examine substrate conditions.
• 3. Moisture Mapping: Use of infrared cameras and moisture meters to detect hidden water intrusion.
• 4. Documentation: Detailed photography, measurements, and notes of all findings.
• 5. Laboratory Analysis: In some cases, material samples are sent for testing to determine failure mechanisms.
• 6. Engineering Report: Comprehensive documentation of findings, root cause analysis, and repair recommendations.

Forensic testing typically costs $15,000-$75,000 depending on building size and scope, but this investment prevents costly mistakes during reconstruction and strengthens legal cases when construction defects are present.

EIFS (Exterior Insulation and Finish System) and traditional hard-coat stucco are both exterior cladding systems, but they differ significantly in composition, performance, and failure modes:

Traditional Hard-Coat Stucco:

• Composition: Multiple layers of cement-based plaster applied over metal lath
• Thickness: Typically 7/8″ to 1″ total thickness
• Substrate: Applied over wood or metal framing with weather-resistant barrier
• Breathability: Allows some moisture vapor transmission
• Durability: Extremely durable when properly installed; can last 50+ years
• Common in Texas: Widely used in residential construction throughout the state

EIFS Systems:

• Composition: Foam insulation board with thin synthetic finish coat
• Thickness: 3-4″ including foam insulation, but finish coat is only 1/8″ thick
• Substrate: Foam board mechanically attached or adhered to substrate
• Breathability: Earlier “barrier” EIFS systems trapped moisture; modern “drainage” EIFS includes water management
• Durability: Finish coat is more prone to impact damage than hard-coat stucco
• Common in Texas: Often used in commercial buildings and some multifamily construction

Key Failure Differences:

Traditional stucco failures typically involve cracking due to substrate movement or inadequate control joints, allowing bulk water intrusion. EIFS failures—particularly in older “barrier” systems—occur when water gets behind the foam board through window/door penetrations and becomes trapped, causing extensive concealed damage to wood framing.

Which Is Better for Texas?

Both systems can perform well in Texas climate when properly installed with adequate drainage planes, proper flashing details, and correct sealant applications. However, traditional hard-coat stucco is generally more forgiving of minor installation errors and more resistant to impact damage—important considerations for Texas hail events and occupied multifamily buildings.

Many forensic engineers in Texas prefer hard-coat stucco for residential applications due to its durability and more predictable performance over time.

Building envelope reconstruction timelines vary significantly based on project scope, building size, occupancy status, and weather conditions. Here are typical timeframes for common Texas reconstruction projects:

Small-Scale Projects (Single Building, <50 Units):

• Balcony waterproofing only: 2-4 months
• Window replacement: 3-6 months
• Localized stucco repair: 3-5 months

Medium-Scale Projects (Multiple Buildings or 50-150 Units):

• Full building re-stucco: 8-12 months
• Complete building envelope remediation: 10-16 months
• Structural repairs with re-cladding: 12-18 months

Large-Scale Projects (Portfolio or 150+ Units):

• Multi-building stucco remediation: 15-24 months
• Complete reconstruction (structure + envelope): 18-30 months
• Phased occupied-space reconstruction: 24-36 months

Timeline Factors:

• Weather Impacts: Texas weather significantly affects reconstruction schedules. Summer heat limits concrete work hours, while winter freezes halt exterior coatings. Hurricane season (June-November) and spring storms can cause multi-week delays. Plan for 10-20% weather contingency time.
• Occupancy Status: Occupied buildings take 30-40% longer than vacant properties due to resident coordination, noise restrictions (typically 8 AM-6 PM), and the need to maintain building access throughout construction.
• Permitting: Texas municipalities require 2-8 weeks for permit approval. Complex projects in cities like Austin may require additional architectural review board approval, adding 4-12 weeks.
• Material Lead Times: Specialized waterproofing membranes, custom windows, or engineered lumber may have 6-12 week lead times, which should be ordered before construction starts.
• Phasing Requirements: Occupied buildings often require phased construction to minimize resident impact, extending overall timelines but making the project manageable for residents.

Realistic Expectations:

A typical full building envelope reconstruction for a 100-unit Texas multifamily building in occupied condition takes 12-16 months from permit submission to final completion. Rush schedules can shorten this to 10 months but may incur premium labor costs and increased stress on residents.

Forensic engineers typically recommend building 15-20% schedule contingency into reconstruction projects to account for unforeseen conditions discovered during demolition, weather delays, and material availability issues.

Stucco remediation costs in Texas typically range from $15 to $45 per square foot, but numerous factors influence the final price. Understanding these variables helps building owners budget accurately for reconstruction projects.

Primary Cost Factors:

• 1. Extent of Substrate Damage: The condition beneath the stucco dramatically impacts cost. Hidden damage discovered during demolition is the #1 cause of budget overruns.
• Cosmetic stucco replacement only: $15-$22/sq ft
• Minor wood substrate repairs (10-20% replacement): $22-$30/sq ft
• Moderate framing replacement (20-40%): $30-$38/sq ft
• Extensive structural repairs (40%+ replacement): $38-$45+/sq ft

• 2. Building Height and Access: Single-story buildings are the baseline; two-story buildings add 15-20%, while three+ story buildings add 25-40%. Lifts and scaffolding add 10-15%.

• 3. Occupancy Status: Vacant buildings are the baseline. Partially occupied buildings add 15-25%, and fully occupied buildings add 25-40% due to protection measures and limited work hours.

• 4. Architectural Complexity: Simple rectangular buildings are the baseline. Buildings with balconies or decks add 20-30%, while complex rooflines and dormers add 25-40%.

• 5. New System Specifications: Adding a drainage plane adds $3-$5/sq ft. Upgraded waterproofing systems add $4-$8/sq ft, and specialty finishes add $2-$6/sq ft.

• 6. Geographic Location in Texas: Major metros like Austin, Dallas, and San Antonio are the baseline. Rural areas may be 10-15% less in labor but higher in mobilization. High-demand booms add 15-25%.

• 7. Project Size: Small projects (<5,000 sq ft) have higher per-square-foot costs, while large projects (20,000+ sq ft) often see reduced rates.

Hidden Costs to Budget For:

• Engineering oversight: 3-5% of construction cost
• Permit fees: 1-2% of construction cost
• Testing and inspection: 2-4% of construction cost
• Contingency for unforeseen conditions: 10-15% of construction cost
• Temporary weatherproofing: $5,000-$25,000

Real-World Example:

A 10,000 square-foot, two-story occupied apartment building in Austin with moderate substrate damage:

• Base stucco work: $280,000
• Two-story premium (18%): $50,400
• Occupied premium (30%): $84,000
• Engineering/permits/testing (5%): $20,700
• Total Project Cost: $435,100 ($43.51/sq ft all-in)

Cost-Saving Strategies:

Building owners can reduce costs by scheduling projects during Texas contractor slow seasons (late fall/winter) or vacating buildings before construction. However, cutting corners on waterproofing details typically leads to premature failure and higher long-term costs.

Proper stucco installation requires meticulous attention to water management details. Most stucco failures in Texas result from shortcuts in the installation process rather than material defects. Here’s the correct sequence:

• 1. Substrate Preparation: Install properly fastened sheathing with appropriate fastener spacing. Ensure a flat, even substrate and flash all penetrations (pipes, vents, electrical) before the weather-resistant barrier.
• 2. Weather-Resistant Barrier (WRB) Installation: Install two layers of Grade D building paper lapped shingle-style. Integrate WRB with window/door flashing—this is where most stucco failures begin.
• 3. Weep Screed Installation: Install weep screed at the bottom of all walls, minimum 4″ above finished grade. This allows moisture to drain out, which is essential in Texas rainfall conditions.
• 4. Control Joints: Install control joints at maximum 144 square feet panel size. They must extend through all coats to the substrate and be sealed with elastomeric sealant after curing.
• 5. Metal Lath Installation: Use 3.4 lb/sq yd self-furring metal lath. Fasten through the WRB into studs and maintain a 1/4″ furring space behind the lath for cement keys.
• 6. Scratch Coat (First Coat): Apply 3/8″ thick minimum. Moist cure for 48 hours minimum—this is critical in hot Texas summers to prevent rapid drying cracks.
• 7. Brown Coat (Second Coat): Apply 3/8″ thick (totaling 3/4″ minimum). Moist cure for 7 days minimum before the finish coat.
• 8. Finish Coat: Apply 1/8″-1/4″ thick. In Texas, acrylic finishes are common but require UV-resistant formulations; traditional cement-based finishes are often more durable in the sun.
• 9. Sealant Installation: Install sealant at all control joints and penetrations. In Texas heat, sealants must be rated for high-temperature performance (150°F+).

Common Texas-Specific Considerations:

• Hot Weather Application: Texas summer temperatures require additional moist curing and may necessitate shade tarps or misting to prevent rapid moisture loss.
• Rain Protection: Cover fresh stucco before rain events; Texas storms can destroy uncured coatwork.
• Curing Time: Extend curing times during humid conditions (Houston/East Texas) to prevent soft, weak stucco.

Why Most Stucco Fails:

The #1 cause of stucco failure in Texas multifamily buildings is improper window and door flashing integration. The #2 cause is inadequate curing time between coats. The #3 cause is missing or improperly installed weep screeds. These errors account for approximately 80% of documented failures.

Industry Standards:

Proper stucco installation should follow ASTM C1063 and local building codes. Forensic engineers verify compliance with these standards during litigation support work.

Texas has complex statutes of limitations for construction defect claims, and understanding these deadlines is critical for building owners, HOAs, and property managers.

Statute of Repose: The Hard Deadline

Texas Civil Practice & Remedies Code § 16.008 establishes a 10-year statute of repose for construction defect claims. This means no construction defect lawsuit can be filed more than 10 years after substantial completion of the building, regardless of when the defect was discovered.

• Clock starts at “substantial completion”: This is when the building is ready for occupancy, not the certificate of occupancy or final payment.
• Applies to original construction: Subsequent repairs start new 10-year periods only for the specific work performed.
• No exceptions: Even if defects weren’t discovered until year 11, claims are time-barred.

Statute of Limitations: The Discovery-Based Deadline

Beyond the 10-year repose period, Texas has discovery-based statutes of limitations that can shorten the timeframe:

• 2 Years for Negligence Claims: Building owners must file negligence-based claims within 2 years of discovering (or when they should have discovered) the defect.
• 4 Years for Contract Claims: Breach of contract claims must be filed within 4 years of when the breach occurred or was discovered.
• 4 Years for Fraud Claims: If construction defects involve fraudulent concealment, a 4-year statute applies from discovery.

Written Notice Requirements (Texas Chapter 27)

Before filing a construction defect lawsuit in Texas, building owners must:

• 1. Provide written notice: Send to all potentially responsible parties at least 60 days before filing suit.
• 2. Describe defects: Provide “reasonable detail” regarding the deficiencies.
• 3. Allow inspection: Allow contractors an opportunity to inspect the property.
• 4. Settlement offers: Consider settlement offers or repair proposals provided by the contractor.

Strategic Timing Considerations:

Forensic engineers and construction defect attorneys recommend investigating suspected defects as early as possible because forensic testing can take 3-6 months and litigation can take 2-4 years. For buildings approaching the 8-year mark post-construction, property managers should proactively schedule building envelope assessments.

Recommended Action Timeline:

• Years 1-5: Document any issues and maintain communication with the builder.
• Years 6-8: Conduct preliminary building envelope assessments if problems emerge.
• Years 8-9: If defects are suspected, immediately engage a forensic engineer and construction defect attorney.
• Year 9+: Emergency timeframe—accelerate all investigations and legal filings before the 10-year deadline.

Once the 10-year statute of repose expires, building owners have no legal recourse against builders or designers for construction defects, regardless of severity. This makes any remaining defects the owner’s financial responsibility.

Many condo owners struggle to distinguish between normal aging and actual construction defects. Understanding the difference is critical because construction defects may be covered under warranty or statutory claims, while normal wear is the owner’s responsibility.

Red Flags That Suggest Construction Defects:

• Water Intrusion Issues: Defects are typically event-driven (water entering during or immediately after rain). Normal wear is usually climate-driven, such as minor condensation in humid weather.
• Cracking Patterns: Stair-step cracks in brick/stucco, horizontal cracks, or any cracks wider than 1/4″ suggest defects. Hairline cracks (<1/16″) are typically normal settlement.
• Stucco or Siding Issues: Red flags include soft or spongy stucco, hollow sounds when tapping, dark staining at the base, or missing weep screeds. Minor surface scratches are generally normal wear.
• Window and Door Problems: Water stains on interior walls, difficulty opening/closing windows due to framing movement, and condensation between window panes (seal failure) indicate defects.
• Balcony and Deck Concerns: Ponding water, rust stains from corroding rebar, or rotted wood framing beneath waterproofing are major defects. Surface wear on coatings is normal after 10+ years.
• Mold Growth: Mold inside walls, behind baseboards, or recurring musty odors suggest hidden water intrusion. Mildew in bathrooms is usually a ventilation/maintenance issue.

Timing Is a Critical Clue:

• First 5 Years: Problems appearing in this window are highly likely to be construction defects.
• Years 5-10: Could be either; forensic investigation is often needed to determine if systems failed prematurely.
• After 10 Years: More likely normal aging, and the Texas statute of repose typically bars legal claims after this point.

The “Building-Wide” Test:

A key indicator of a defect is when multiple units experience similar problems. One leaky window might be a maintenance issue, but ten units with leaks in the same location indicate a systemic construction defect. HOA boards should track resident complaints to identify these patterns.

When to Investigate Further:

• Progressive worsening of issues over time.
• Multiple similar problems across different areas of the building.
• Water intrusion with no obvious external source.
• Issues appearing within the first 5 years of construction.

Recommended First Steps:

• 1. Document Everything: Take photos and record dates/weather conditions.
• 2. Check Building Age: If the building is under 10 years old, legal recourse may still be available.
• 3. Survey Neighbors: Determine if the problems are widespread.
• 4. Contact the HOA: Many defects affect common-area elements that require board action.
• 5. Consult Professionals: Schedule an assessment with a forensic engineer to diagnose the root cause.

In Texas, mistaking a construction defect for normal wear can be a million-dollar mistake. Early professional assessment is always cheaper than deferred maintenance or losing legal rights due to the statute of limitations.

Forensic engineers are the linchpin of construction defect cases in Texas, serving as independent technical experts who investigate building failures, determine causation, and provide expert testimony.

Primary Responsibilities of Forensic Engineers:

• 1. Initial Assessment and Investigation: Engineers conduct evaluations to identify defects, distinguish them from normal wear, and review original construction documents.
• 2. Invasive Testing and Documentation: This involves controlled demolition to examine hidden conditions. In Texas, forensic engineers document damage that is often much worse than visible symptoms suggest.
• 3. Root Cause Analysis: Determining if failures were caused by improper design, deficient construction, inadequate materials, or code violations.
• 4. Scope of Repair Development: Creating exact specifications and materials requirements that become the roadmap for reconstruction contractors.
• 5. Cost-of-Repair Estimates: Developing detailed projections for labor, materials, soft costs, and contingencies used in legal settlement negotiations.
• 6. Expert Witness Testimony: Explaining technical concepts to judges and juries and defending findings under cross-examination during trial or arbitration.
• 7. Construction Oversight (Post-Litigation): Observing repairs to ensure they comply with specifications and certifying the completion of work.

The Engineer-Attorney-Contractor Triangle:

• Forensic Engineer: Identifies and documents defects, determines causation, and develops the repair scope.
• Defect Attorney: Manages the legal strategy, negotiations, and litigation process.
• Reconstruction Contractor: Executes the engineer’s specifications to correct the defects.

What Forensic Engineers Are NOT:

• Home Inspectors: They conduct far more extensive and technical investigations than a standard home inspection.
• Contractors: They design the repairs but do not perform the manual construction work.
• Advocates: They provide objective technical analysis rather than legal advocacy.

Qualifications to Look For:

• Professional Engineer (PE) license in Texas
• Specialized training in building envelope systems
• Experience with multifamily or commercial building types
• Track record of expert testimony in court

Cost Considerations:

• Initial assessment: $3,000-$8,000
• Invasive testing program: $15,000-$50,000
• Repair specifications and cost estimates: $10,000-$30,000
• Construction administration: 3-5% of construction cost
• Expert testimony: $300-$500/hour

Timeline Expectations:

A total timeline typically spans 3-6 months from engagement to the final report. This includes 1-2 weeks for assessment, 4-8 weeks for testing, and 4-8 weeks for report preparation. Building owners should factor this into Texas’s 10-year statute of repose.

The Value of Early Engineer Involvement:

Engaging a forensic engineer before hiring legal counsel can help determine if legitimate defects exist and preserve critical evidence. Waiting until years 8 or 9 post-construction creates unnecessary time pressure and may limit strategic legal options.

Choosing the Right Engineer:

Building owners should ask potential engineers about their experience with stucco or EIFS systems, their history of testifying in Texas courts, and their specific timeline for multifamily defect cases. The right forensic engineer makes the difference between successful defect recovery and costly missed opportunities.