Bill > S925

This bill establishes a new legal process for addressing construction defects in dwellings, requiring claimants (those asserting a defect) to formally notify the contractor of the alleged issue at least 90 days before filing a lawsuit or arbitration, known as an "action." This notice must detail the defect and provide supporting evidence. The contractor then has 30 days to respond, either by offering a settlement (monetary payment, repairs, or both) or proposing an inspection. If the contractor rejects the claim or fails to respond, the claimant can proceed with legal action. If an inspection is proposed, the claimant must grant access, and the contractor, after inspection and testing, must provide a written offer to repair, settle with money, or a combination within 14 days. If the claimant rejects a reasonable offer, their potential recovery and ability to claim costs and attorney fees may be limited. The bill also outlines specific procedures for associations of unit owners in condominiums or cooperatives to pursue claims for defects in common areas, including requirements for owner approval and contractor notification, and prohibits bribery related to construction defect claims. Importantly, contractors must inform owners of this pre-litigation process at the time of contract signing. The provisions of this bill apply to all actions initiated after its effective date, regardless of when the dwelling was built or completed.