HB1468
To Amend Arkansas Law Concerning Claims Against Home Improvement Contractors, Residential Building Contractors, And Suppliers.
AI-Generated Summary
This bill proposes to establish a new subchapter in Arkansas law concerning claims against home improvement contractors, residential building contractors, and suppliers. It defines key terms such as "action," "claim," "claimant," "construction defect," "dwelling," "home improvement contractor," "residential building contractor," and "supplier." The core provision requires a claimant to provide written notice of a construction defect to the contractor or supplier at least twenty-eight days before commencing legal action. This notice must detail the defect and its known results. The bill mandates that the contractor or supplier be given an opportunity to inspect, repair, or remedy the alleged defect. Within fourteen days of receiving notice, the contractor or supplier must respond by proposing an inspection, offering to remedy the claim, or disputing it. If the claimant accepts an offer to remedy the defect and the contractor or supplier fulfills it, the claimant is barred from further action on that specific claim. This process is not applicable to actions brought by the Attorney General for civil enforcement of the Deceptive Trade Practices Act. The bill also requires contractors and suppliers to notify owners of these new claim requirements before starting work.
Potential Impact Analysis
Who Might Benefit?
['Homeowners, tenants, and lessees of dwellings who experience construction defects would benefit from a structured process to notify and seek remedies from contractors and suppliers. This bill provides a clear procedural path for addressing construction issues before potentially initiating costly legal action. Contractors and suppliers may also benefit by having a defined opportunity to rectify issues, potentially avoiding lawsuits and associated damages, and by gaining clarity on their obligations and the process for resolving claims within a specified timeframe.']
Who Might Suffer?
["Home improvement contractors, residential building contractors, and suppliers could be negatively impacted by the added procedural requirements and the potential for increased administrative burden. They are required to provide advance notice of the law's provisions, respond to claims within a strict timeframe, and offer opportunities for inspection and repair. If they fail to comply with these procedures or do not fulfill accepted offers, claimants can proceed with legal action. Additionally, the definitions of construction defects and the warranty provisions could potentially broaden the scope of claims they are liable for, leading to increased risk and potential financial exposure."]