Construction defects affect New York landmark. The Citibank Center in New York City is built on stilts and sits above the St. Peter's Evangelical Lutheran Church. (Photo: Shutterstock)

According to the International Risk Management Institute (IRMI), a construction defect is defined as "a deficiency in the design or construction of a building or structure resulting from a failure to design or construct in a reasonably workmanlike manner, and/or in accordance with a buyer's reasonable expectation." IRMI goes on to differentiate between dangerous defects threatening life and limb, and passive defects threatening neither but that can result in lost value or increased cost from correcting the defect.

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