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Information About Current Use of Arbitration Requested

The home building industry has seen a dramatic increase in construction defect litigation since the early 1990s. To date, approximately 24 states have adopted notice of opportunity to repair legislation, which requires home owners to notify builders of alleged construction defects prior to filing lawsuits and gives builders an opportunity to address defect concerns.

Anecdotal evidence exists that arbitration involving home construction defects provides a quicker, less expensive and fair alternative to court trial for consumers as well as builders.

NAHB is in the process of determining the extent of current arbitration use in the industry during 2002-2003 and is seeking information from arbitration service providers.

NAHB is asking arbitration service providers to fill out the following six-question survey about arbitration and forward the answers to NAHB.

(Builders and remodelers who have used arbitration service providers are asked to forward the questionnaire to your provider.)

National Association of Home Builders

Construction Defect Arbitration Questionnaire

• How many arbitrations in each of past two years have you conducted involving construction defect issues in connection with a new home? A remodeling project?

2002: (New Home) __________________ (Remodeling) ___________________
2003: (New Home) __________________ (Remodeling) ___________________

• For 2002 what percentage of the arbitrations were initiated by:

Home owner _________________%
Builder ______________________%

• For 2003 what percentage of the arbitrations were initiated by:

Home owner _________________%
Builder ______________________%

• In what percentage did plaintiff (aka “claimant”) get an award?

2002 ____________ % of Plaintiff Awards
2003 ____________ % of Plaintiff Awards

• In what percentage did defendant (aka “respondent”) get an award?

2002 ____________ % of Defendant Award
2003 ____________ % of Defendant Award

• In what percentage did the arbitrations not proceed to award and settle?

2002 __________% Settled After Arbitration Initiated
2003 __________% Settled After Arbitration Initiated

If you do not have exact figures, an approximation will do. If you provide services in multiple states, please provide a breakdown by state.

Organization Name: __________________________________________________

Any information provided is for NAHB use and will not be shared with the public.

E-mail your responses to David Jaffe.
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