Legislative Group Endorses Favorable 'Notice and Opportunity to Repair' Amendments
At its policy summit in Phoenix last December, the American Legislative Exchange Council's (ALEC) Civil Justice Task Force endorsed several amendments to their model “Notice and Opportunity to Repair” legislation.

At its policy summit in Phoenix last December, the American Legislative Exchange Council's (ALEC) Civil Justice Task Force endorsed several amendments to their model “Notice and Opportunity to Repair” legislation.

The legislation, which is the basis for laws in 14 states, establishes a process for settling construction disputes out of court and is a critical step toward alleviating the industry's general liability insurance crisis.

The amendments

• Make the process of resolving construction disputes more streamlined and transparent by allowing a contractor to inspect an alleged defect and making a claimant provide a reason for not accepting a reasonable settlement offer. In addition, the act retroactively applies to all units covered under the state's statute of repose.
• Offer incentives for settling disputes out of court and excludes the contractor from liability under certain defect claims, such as those that were known about by the homeowner before the home was purchased or when a contractor is not allowed to perform warranty service work.
• Make the process fairer for builders by limiting a homeowners association's ability to bring claims against builders.

A number of states are expected introduce a version of the legislation in 2004, and Alec's backing will give the bills enhanced credibility.
 
To learn more about NAHB’s work on “Notice and Opportunity to Repair” legislation, contact Sam Leyvas at 800-368-5242 x8326. [ return to top ]