House construction work hit by structural defects, Telangana man wins Rs 8 lakh refund

Agreement between parties

The complainant stated he had availed the services of the contractor on the recommendations of the consultant company to undertake his house work, including civil works and wood work.  It was stated that the parties entered into an agreement for the work.

The complainant alleged that he was informed by a structural engineer working nearby that there was a structural defect in the construction and that two pillars were improperly laid. A structural engineer appointed by the consultant inspected the site and reported severe vibrations in the columns due to inadequate compaction while concreting, resulting in air voids and honeycombing. The engineer advised that the two columns be demolished and rebuilt.

The complainant alleged that despite the above serious lapses in the construction of the pillars/columns, the opposite parties failed to demolish the pillars even after several reminders by the complainant. He also alleged that the consultant had improperly released funds from the escrow account despite the defects.

The consultant company denied the allegations and said that the complainant had defaulted in making the complete payment of the work contract and had filed the complaint in order to evade payment. It also submitted that the contractor had abandoned the project and that it tried to find a replacement. It was alleged that during discussions with the complainant, he was requested to make the pending payment but was refused.

The commission held that the company failed in its primary contractual mandate to effectively monitor, supervise, and enforce quality control. “By disbursing milestone payments from the escrow account to contractor without verifying the structural soundness of the work or ensuring defect rectification, consultant company breached its fiduciary duty and rendered the escrow safety mechanism meaningless,” it noted.

It held that there was fundamental breach of the terms and conditions of the agreement. Holding both parties jointly and severally liable, the commission partly allowed the complaint and directed them to refund Rs 8.29 lakh , besides paying Rs 50,000 for financial loss and mental agony and Rs 20,000 towards legal expenses.

Takeaway

When hiring a construction consultant through a platform, homeowners should carefully document defects and monitor whether consultants are actually carrying out promised supervision.

Aggrieved consumers may contact the consumer helpline in their respective states (Telangana: 0771-2582902) or call the National Consumer Helpline at 1915 for assistance.

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