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State Construction Defect Legislation Progresses Steadily

On an issue of top importance to the nation’s housing industry, bills requiring home owners to give builders an opportunity to repair or pay for alleged construction defects before filing a lawsuit continue to make steady progress in state legislatures around the country.

The “notice and opportunity to repair” movement has scored several victories just within the last month; construction defect legislation has been either signed into law or passed by the state legislature in Idaho, Kansas, Indiana, Montana and Colorado.


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The bills contain similar provisions that require claimants to notify builders of their intent to file a suit and then give builders the option of responding. From there, however, they differ in scope. For example:

  • Idaho’s HB 133 extends the notice and opportunity process to all home owners — not just buyers of new homes — and applies to all subcontractors involved in the home’s construction. The bill also contains damage limits.
  • In addition to limits on damages, HB 2294 in Kansas requires builders to provide contact information and work descriptions for all subcontractors involved in the project. The bill also contains provisions about claims made by home owner associations.
  • SB 451 in Indiana awards attorney’s fees to builders if the claimant does not give the builder enough time to fix the defect.
  • Montana’s HB 389 includes a statute of limitations and places very specific limits on damages.
  • Colorado’s 1161 caps non-monetary damages at $250,000 in most cases, and includes the assignment of attorney fees.

Similar legislation is still being considered in eight states: Alaska, Florida, Illinois, Missouri, Nevada, Oregon, South Carolina and Texas.

For more information, e-mail Marie Zenner or call her at 800-368-5242 x8279.

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