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Liability and repair costs for foundation failures can wipe out a builder's business. As an expert litigation witness and job-site trouble shooter for the Ontario New Home Warranty Program, I've seen cases where the cost of a single claim exceeded the total cost of the home. Most builders fail to recognize that the soil surrounding a foundation is responsible for the majority of foundation failures. Even foundations built with good materials and firstrate workmanship will fail if poor soil conditions are not considered. The five leading causes of foundation callbacks, listed in order from the most to the least frequent, are 1. Frost-related damage 2. Settlement problems 3. High water-table problems 4. Leaky basements 5. Soil