LD 1403
pg. 4
Page 3 of 8 An Act To Create an Alternative Method of Dispute Resolution in Homeowner Claim... Page 5 of 8
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LR 685
Item 1

 
B.__Offers to compromise and settle the claim by monetary
payment, without inspection, and includes a timetable for
making payment;

 
C.__Offers to compromise and settle the claim by a
combination of repairs and monetary payment, without
inspection, and includes a detailed description of the
proposed repairs and a timetable for the completion of such
repairs and making payment;

 
D.__Proposes to inspect the residence that is the subject of
the claim; or

 
E.__Disputes the claim and states that the contractor will
not remedy the defect or compromise and settle the claim.

 
3. Proposal for inspection.__If a proposal for an inspection
is made pursuant to subsection 2, paragraph D, the claimant
shall, within 30 days of receiving the contractor's proposal,
provide the contractor and a subcontractor, agent, expert or
consultant of the contractor prompt and complete access to the
residence so that they may inspect the residence, document any
alleged construction defect and perform any destructive or
nondestructive testing required to fully and completely evaluate
the nature, extent and cause of the claimed defect and the nature
and extent of any repairs or replacements that may be necessary
to remedy the alleged defect. If destructive testing is required,
the contractor shall give the claimant advance notice of the test
and shall, after completion of the test, return the residence to
as close to its pretested condition as is reasonably practicable.
If an inspection or test reveals a condition that requires
additional testing to allow the contractor to fully and
completely evaluate the nature, cause and extent of the
construction defect, the contractor shall provide notice to the
claimant of the need for the additional testing and the claimant
shall provide access as required by this subsection. If a claim
is asserted on behalf of owners of multiple residences or
multiple owners of units within a multifamily complex, then the
contractor is entitled to inspect each residence or unit.

 
4.__Response to notice of claim following inspection.__Within
15 days following completion of the inspection and testing under
subsection 3, the contractor shall serve on the claimant a
written response to the notice of claim that:

 
A.__Offers to remedy the alleged construction defect at no
cost to the claimant and includes a detailed description of
the proposed repairs necessary to remedy the defect and a
timetable for the completion of such repairs;


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