The Right To Repair Act does not provide a homebuyer’s exclusive remedies for construction defects and does not bar common law claims for negligence or breach of implied warranty where defects results in property damage. A contractor which builds a new home under a contract with a developer/home seller may have a duty of care to prospective purchasers with whom the contractor is not in privity, and may be liable to prospective purchasers for breach of implied warrant under a theory that the home buyer is a third party beneficiary of the construction contract between the developer/seller and the contractor.

Bay Cities Paving & Grading Inc v City of San Leandro–Oliver DeSilva Inc dba Gallagher & Burk– Real Party in Interest2014 DJDAR 1909 (2014

This case involved a bidder ( Gallagher & Burk) who filed a Bid Bond with the first page missing and was the lowest contractor in this project with the city of San Leandro. The city found that the Bid Bond was signed by G&B and that the failure of G&B to submit the first page was a “minor irregularity”. G&B used the City’s standard Bid Bond Form. The City found that the signed Bid Bond page 34 referred to the prior text on page 33 and that the signature page independently identified the project.. The City reasonably concluded that a court would read page 34 (the second page) of the Bid Bond in the context of the form bid bond and enforce the bid bond under Civil Code section 1647. Continue reading →