Builders in South Carolina need to be aware that any violation of the building code or industry standards, no matter how insignificant it may seem, can result in the builder being held liable. In Kennedy v. Columbia Lumber and Mfg. Co., Inc., 384 S.E.2d 730 (S.C. 1989), the South Carolina Supreme Court determined that a builder may be liable in tort if he violates an applicable building code, deviates from industry standards, or constructs housing that he knows or should know will pose serious risks of physical harm. The home buyer will have a cause of action in negligence against the builder no matter what type of damage results from code violation. This means that even if the buyer has no physical injury or no property damage, he can recover against the builder for purely economic loss. Thus, even if they buyer’s damages consist only of the cost of bringing the structure up to code, the builder would be liable for these damages.

Builders should also keep in mind that even if all parties agree to a lower standard of work than the industry standards or building code requires, the builder could still face liability from subsequent purchasers who did not agree to the lower building standards.  

What this means for builders:

• Violating any building code or industry standard will put you at risk for liability, even if there is no property damage.
• A builder and buyer’s agreement to a lower standard of work, while it may be fine between those two parties, can result in the builder’s liability to a subsequent purchaser.

This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.