Construction Defect Claims Contractors are required to carry liability insurance. They are facing increased costs for their insurance in part because insurers are concerned about the increased cost of construction defect litigation. This Act establishes an opportunity for a cure before an action on a construction defect is filed. Under the Act, a claimant filing a construction defect suit must provide written notice to the construction professional 45 days before the suit is filed. The construction professional must respond within 21 days of the notice and may offer to remedy the defect, compromise by payment, or dispute the claim. If a suit is filed, the claimant must, within 30 days of commencement, list the construction defects alleged and the construction professional responsible for each defect. Newly discovered defects may be added to an existing lawsuit if the builder is given notice and 21 days to respond. The serving of notices required by the Act tolls any applicable statute of limitations or repose until 60 days after the end of the period of notice and opportunity for cure provided. A condominium or homeowners’ association filing a construction defect suit must notify all unit owners of the action and the expected expenses and fees accompanying it. Submitted as: Washington Chapter 323, Laws of 2002 Status: enacted into law in 2002. Suggested Legislation Title, enacting clause, etc.) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Section 1. [Short Title.] This Act may be cited as “An Act to Address Construction Defect Claims.” Section 2. [Legislative Findings.] The [legislature] finds, declares, and determines that limited changes in the law are necessary and appropriate concerning actions claiming damages, indemnity, or contribution in connection with alleged construction defects. It is the intent of the [legislature] that this Act apply to these types of civil actions while preserving adequate rights and remedies for property owners who bring and maintain such actions. Section 3. [Definitions.] Unless the context clearly requires otherwise, the definitions in this section apply throughout this Act. (1) “Action” means any civil lawsuit or action in contract or tort for damages or indemnity brought against a construction professional to assert a claim, whether by complaint, counterclaim, or cross-claim, for damage or the loss of use of real or personal property caused by a defect in the construction of a residence or in the substantial remodel of a residence. “Action” does not include any civil action in tort alleging personal injury or wrongful death to a person or persons resulting from a construction defect. (2) “Association” means an association, master association, or subassociation as defined and provided for in [insert citation]. (3) “Claimant” means a homeowner or association who asserts a claim against a construction professional concerning a defect in the construction of a residence or in the substantial remodel of a residence. (4) “Construction professional” means an architect, builder, builder vendor, contractor, subcontractor, engineer, or inspector, including, but not limited to, a dealer as defined in [insert citation] and a declarant as defined in [insert citation], performing or furnishing the design, supervision, inspection, construction, or observation of the construction of any improvement to real property, whether operating as a sole proprietor, partnership, corporation, or other business entity. (5) “Homeowner” means:
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2003 Suggested State Legislation, Volume 62
