Great Western Buildings was a Texas-based metal building construction company started in 2002 by Charles Croft. For over a decade, the company saw considerable success building warehouses, manufacturing facilities, and other commercial structures across the southern United States. However, in 2014 several customers began to experience major issues with leaking roofs and falling facade panels. This ultimately led to a class action lawsuit against Great Western Buildings alleging building defects and failure to properly resolve customer complaints.
The Great Western Buildings Lawsuit
In January 2015, a class action lawsuit was filed against Great Western Buildings in Texas federal court. The suit represented over 40 customers who had experienced significant problems with their metal buildings after only a few years, including roof leaks, cracks in walls and support beams, and issues with insulation and metal siding coming loose or falling off.
Plaintiffs alleged that Great Western Buildings knew of design and construction flaws but continued using subpar materials and construction techniques to save on costs. They also claimed the company was unresponsive to warranty repair requests and complaints.
Over the next 18 months, additional customers joined the class action as plaintiffs. Depositions uncovered that Great Western had received hundreds of defect complaints since 2010 but failed to take proper corrective action or quality control steps.
Engineers inspected many affected buildings and found them to not meet basic standards due to poor welding, inadequate bracing and support structures, and faulty roof installation. The plaintiffs sought damages for repair/replacement costs and lost business revenue from building disuse during ongoing leaks.
In late 2016, a settlement was reached. Great Western Buildings declared bankruptcy and its assets were liquidated. Insurance policies helped establish a $32 million fund to pay claims to over 75 affected customers. Claimants received compensation averaging 75-85% of estimated repair costs or diminution in property values based on engineering assessments. While not made whole, most plaintiff customers saw this as the best available resolution given the company’s insolvency.
Lessons from the Case
This class action lawsuit highlighted key lessons for both commercial builders and their clients:
- Importance of Vetting Contractors’ Quality Control and Complaint Handling
- Need for Third Party Engineering Inspections of Large Commercial Buildings
- Benefits of Comprehensive Warranties from Reputable Manufacturers
- Risks of Using Budget Materials and Shortcuts to Save on Build Costs
- Customer Education on Pursuing Legal Action for Significant Defect Issues
- Value of Insurance for Companies Facing Class Action or Product Failure Claims
While an unfortunate case, it increased awareness for all parties on proper due diligence, effective dispute resolution, and quality assurance important for large commercial construction projects.
Inspections at Key Stages Prevent Cascade Failures
Conducting inspections at milestone phases like foundation pouring, framing, insulation, plumbing/electrical and cladding installation allows caught issues to be fixed before moving on. This prevents early defects from causing cascade problems down the line requiring much costlier repairs.
Inspectors Assess Against Plans and Code Compliance
Qualified third party inspectors check work matches engineer-stamped plans, shop drawings and building specifications. They also verify all material installations and workmanship complies with current safety codes to head off potential violations.
Document Inspections for Legal Protection
Having inspectors generate reports after each phase visit and owners signing off provides a record no shortcuts or deficiencies were overlooked. This documentation protects liability for all parties in case of future disputes or insurance claims.
Early Catch Problems, Avoid Callbacks and Schedule Slippage
Catching blunders like improper connections or substandard materials at first sight allows crews to swiftly remedy before moving on. This avoids expensive callbacks to fix prior work and schedule delays from having to redo entire phases of construction.
Facilitates Timely Issue Resolution While Still Correctable
Minor fix needs found during inspections get addressed right away while minor rather than dragged out due to neglect until becoming major repairs once building completed and occupied.
In conclusion, regular inspections from design through closeout represent a relatively small cost for the quality, safety and liability protection provided to construction projects of all sizes. They pay dividends in avoiding much pricier defects down the road.
Additional Construction Risks Revealed
Beyond the specific issues at the center of this dispute, the Great Western Buildings lawsuit also brought to light some related construction industry risks worth noting:
Buildings as Long-Term Investments – Large structures affect owners/tenants for decades, so cutting costs can backfire through frequent repairs.
Supply Chain Oversight – Vetting materials sources is vital to ensure specified components/products rather than cheaper alternatives.
Qualified Construction Crews – Using licensed, experienced labor avoids welding/installation defects from underqualified personnel.
Compliance with Building Codes – Strict adherence to regulations ensures occupant safety beyond purely aesthetic concerns.
Soil Testing & Foundations – Ignoring geotechnical evaluations risks excessive settlement cracking building integrity prematurely.
Warranty Standards – General contractors should stand behind work or bond subcontractors able to cover remediation costs.
Inspections During Construction – Continuous oversight catches issues before completion rather than expensive post-build fixes.
Ongoing continuing education helps construction professionals deliver projects addressing such risks through proven practices and quality focus.
FAQs on the Great Western Buildings Lawsuit
Q. What type of structures were affected by issues at Great Western Buildings?
A. The class action lawsuit involved a range of commercial metal buildings including warehouses, manufacturing facilities, airplane hangars, schools and other structures.
Q. When did the Great Western Buildings lawsuit take place?
A. The class action was filed in January 2015 and settled in late 2016 after Great Western Buildings declared bankruptcy amidst the legal proceedings.
Q. How many plaintiffs/customers were eventually involved in the suit?
A. Over 75 affected customers representing more than 40 structures in multiple states ended up joining the class action against Great Western Buildings.
Q. What was the ultimate resolution or settlement reached?
A. Great Western’s insurance policies helped establish a $32 million fund used to compensate claimants for an average of 75-85% of estimated repair costs for their buildings.
Q. What type of building defects or problems were discovered?
A. Roof leaks, cracking support beams, loosening siding/facades, defective insulation and faulty construction practices were among the key issues found by expert inspections.
Q. Could this have been avoided through better building practices?
A. Yes – the suit showed the importance of quality control, proper materials selection, responsive customer service and addressing complaints in a timely manner.
In summary, this high-profile case highlighted the legal risks companies face when cutting corners on construction quality and standards for large commercial buildings. Proper due diligence protects all parties involved in such major projects.