Are lawsuits really necessary to resolve a construction defect claim?

Lawsuits are not always necessary but they often are if the problems with the project are significant. The reason for that is that a builder cannot trigger it’s insurance coverage and get the benefit of that money to settle the issue if you don’t actually file a lawsuit. It’s also true that builders like to look to their subcontractors to participate in resolving the claim, and subcontractors are difficult to get to cooperate unless they’re forced into a lawsuit.