Construction Defect Demand Letter - Arkansas

CONSTRUCTION DEFECT DEMAND LETTER

STATE OF ARKANSAS

NOTICE UNDER ARK. CODE ANN. § 4-75-1502, IF APPLICABLE

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND REGULAR FIRST-CLASS MAIL

[DATE]

[CONTRACTOR/BUILDER NAME]
[ADDRESS]
[CITY, STATE ZIP]
Arkansas Contractor License No.: [LICENSE NUMBER]

Re: STATUTORY NOTICE OF CONSTRUCTION DEFECTS
Property Address: [PROPERTY ADDRESS]
Owner: [OWNER NAME]
Original Contract Date: [DATE]
Substantial Completion Date: [DATE]

Dear Sir or Madam:

This firm represents [OWNER NAME] ("Owner" or "Claimant") regarding construction defects at the above-referenced property. If the alleged construction defect was found within one year after completion of a dwelling and the recipient is a covered home improvement contractor, residential building contractor, or supplier, this letter is intended to provide the written notice required by Ark. Code Ann. § 4-75-1502(a) before a civil action or arbitration proceeding is commenced.

A COVERED RECIPIENT'S WRITTEN RESPONSE IS DUE WITHIN FOURTEEN (14) DAYS AFTER DELIVERY. NO COVERED ACTION WILL BE COMMENCED LESS THAN TWENTY-EIGHT (28) DAYS AFTER DELIVERY OF THIS NOTICE.

I. ARKANSAS-SPECIFIC LEGAL FRAMEWORK

A. Arkansas Construction-Defect Notice Procedure

Ark. Code Ann. §§ 4-75-1501 and 4-75-1502 establish a pre-action notice and remedy opportunity for a narrow category of residential claims. The procedure applies when:

• A construction defect is found within one year after completion of a dwelling;
• The claimant is an owner, tenant, or lessee with standing regarding the defect; and
• The claim is against a covered home improvement contractor, residential building contractor, or supplier. A statutory "supplier" is limited to a person that manufactures or provides windows or doors for a dwelling.

For a covered claim, the claimant must deliver written notice at least 28 days before commencing a civil action or arbitration. The notice must describe the alleged defect and its known results, and the claimant must provide reasonable access during normal working hours for an inspection. Ark. Code Ann. § 4-75-1502(a).

B. Covered Defects

If the contractor or supplier gave the consumer a warranty, Ark. Code Ann. § 4-75-1501 uses that warranty's definition of "defect." Otherwise, a covered construction defect is a dwelling-construction deficiency resulting from defective material, violation of applicable codes, or failure to follow accepted-grade standards for workmanlike construction. The statute does not create a blanket procedure for every commercial project, design-professional claim, personal-injury claim, or defect discovered more than one year after dwelling completion.

C. Statute of Limitations

The claim theory, writing, accrual date, notice, repair history, and any tolling or savings rule must be analyzed separately. Do not apply a four-year Uniform Commercial Code period to a construction-services claim merely because materials were used.

D. Statute of Repose

For covered claims seeking damages caused by a deficiency in design, planning, supervision, observation, construction, or repair of an improvement to real property, Ark. Code Ann. § 16-56-112(a) generally bars suit more than five years after substantial completion. The section contains exceptions and qualifications, including fraudulent concealment, and it does not extend a shorter otherwise-applicable limitations period. In Thompson Thrift Construction, Inc. v. Modus Studio, PLLC, 2025 Ark. App. 193, the Court of Appeals held that Arkansas's savings statute permitted refiling within one year after a timely action was dismissed without prejudice even though the repose period had expired.

E. Implied Warranties in Arkansas

Arkansas recognizes implied warranties of habitability, sound workmanship, and proper construction in the sale of a new house by a builder-vendor, unless properly excluded or waived. Wawak v. Stewart, 247 Ark. 1093, 449 S.W.2d 922 (1970). A claimant must give reasonably timely and sufficiently clear notice that affords an opportunity to inspect and correct the defects.

Under Blagg v. Fred Hunt Co., 272 Ark. 185, 612 S.W.2d 321 (1981), those warranties may extend to a subsequent purchaser for a reasonable time when there has been no substantial change in the building and the defect is latent, not discoverable by reasonable inspection, and becomes manifest only after purchase. The rule is conditional, not an unlimited warranty for every later owner.

F. Contractor Licensing

Subject to the exemptions in Ark. Code Ann. § 17-25-513, § 17-25-505 requires residential building contractors and home improvement contractors to hold the required Residential Contractors Committee license. One exemption covers a project whose work does not exceed $2,000, but other statutory exemptions also require review. Under § 17-25-515, a contractor that performs work in violation of the subchapter may not bring an action in law or equity to enforce the contract or recover in quantum meruit.

II. PROPERTY AND PROJECT INFORMATION

A. Property Description

B. Project Information

C. Parties Involved

General Contractor:

• Name: [NAME]
• License Number: [NUMBER]
• Address: [ADDRESS]
• Contact: [PHONE/EMAIL]

Subcontractors:

III. DESCRIPTION OF DEFECTS

For purposes of Ark. Code Ann. § 4-75-1502(a), the following describes each claimed construction defect and its known results:

DEFECT #1: [TITLE - e.g., FOUNDATION SETTLEMENT]

Location: [Specific location within the property]

Description: [Detailed description of the defect]

Known Results / Resulting Damage: [Describe damage, loss of use, water intrusion, movement, deterioration, or other known result]

Building Components Affected:
☐ Foundation/Slab ☐ Framing ☐ Roofing ☐ Exterior walls/Siding ☐ Windows/Doors
☐ Plumbing ☐ Electrical ☐ HVAC ☐ Insulation ☐ Drywall/Interior finishes
☐ Flooring ☐ Waterproofing ☐ Drainage ☐ Other: [SPECIFY]

Standards Violated:
☐ State or local code adopted and in effect for this project
☐ Manufacturer's Installation Instructions
☐ Industry Standards (IRC, IBC, ASTM)
☐ Contract Specifications
☐ Express warranty
☐ Applicable implied warranty

Date Found / First Observed: [DATE]

Estimated Cost to Repair: $[AMOUNT]

DEFECT #2: [TITLE]

[REPEAT FORMAT ABOVE FOR EACH DEFECT]

IV. SUMMARY OF DEFECTS AND DAMAGES

V. LEGAL BASIS FOR CLAIMS

A. Breach of Contract

You failed to perform construction in accordance with the contract terms, plans, specifications, and project-specific applicable codes.

B. Breach of Express Warranty

You provided the following express warranties and failed to perform them: [IDENTIFY EACH WARRANTY AND BREACH].

C. Breach of Implied Warranty of Habitability

If the builder-vendor/new-home rule applies, the alleged defects breach the implied warranty recognized in Wawak v. Stewart, 247 Ark. 1093, 449 S.W.2d 922 (1970). A subsequent purchaser should assert this theory only if the conditions described in Blagg v. Fred Hunt Co., 272 Ark. 185, 612 S.W.2d 321 (1981), are supported by the facts.

D. Breach of Implied Warranty of Workmanlike Construction

If applicable to this transaction, the defects breach Arkansas's implied warranties of sound workmanship and proper construction. The claimant has provided notice intended to identify the breach and afford an opportunity to inspect and correct it.

E. Negligence

To the extent Arkansas law imposes a duty independent of the contract under the facts of this project, the defective work may support a negligence claim. The duty, breach, causation, and recoverable property damage must be established; a contract breach should not automatically be relabeled as negligence.

F. Violation of Building Codes

The work appears to violate the project-specific code provisions below. Verify the code, edition, effective date, local adoption or amendment, and cited section before use.

VI. STATUTORY NOTICE AND REMEDY OPPORTUNITY

A. Written Response Due Within 14 Days

If Ark. Code Ann. § 4-75-1502 applies, you must deliver a written response within 14 days after delivery of this notice. The response must do one of the following:

1. Propose to inspect the dwelling and complete the inspection within a specified timeframe;
2. Offer to remedy all or part of the claim without an inspection; or
3. Dispute the claim.

If you inspect under option 1, § 4-75-1502(c) permits you, based on the inspection findings, to offer to remedy all or part of the claim or dispute the claim. The statute does not make a monetary settlement offer one of the enumerated response options, although the parties remain free to negotiate separately.

B. Claimant's Acceptance and Access

A Claimant who accepts an offer to remedy all or part of the claim must serve written notice of acceptance no later than 30 days after receiving the offer and provide reasonable access during normal working hours for the remedy. Ark. Code Ann. § 4-75-1502(e).

C. When a Covered Action May Proceed

No covered action will be commenced less than 28 days after delivery of this notice. Subject to that minimum period, § 4-75-1502(d) permits the Claimant to proceed if the recipient disputes the claim, does not respond within the 14-day period, fails to fulfill an accepted remedy offer, or the Claimant does not accept the offer.

If the Claimant accepts a compliant offer and the recipient successfully remedies the claim, § 4-75-1502(f) bars an action for the claim described in the notice. The Claimant therefore requests a detailed written scope, schedule, access plan, warranty terms, and completion documentation for any proposed remedy, and counsel should evaluate the effect of accepting a partial-remedy offer before acceptance.

VII. INSPECTION ACCESS

The Claimant will provide the reasonable access during normal working hours required by Ark. Code Ann. § 4-75-1502(a)(2). To propose an inspection in the written response due within 14 days after delivery:

1. State the proposed inspection scope and the timeframe in which it will be completed
2. Propose dates and times during normal working hours
3. Identify all persons and experts who will attend
4. Identify any testing, opening, sampling, or destructive activity proposed
5. Describe how inspected areas will be protected and restored

Contact Information:
[LAW FIRM NAME]
[ADDRESS]
[PHONE]
[EMAIL]

VIII. PRESERVATION OF EVIDENCE

Preserve all documents and materials relating to construction, including:

• All contracts and subcontracts
• Plans, specifications, and drawings
• Inspection reports
• All correspondence
• Construction photographs
• Daily logs and progress reports
• Warranties and insurance documents

This is a preservation request. The availability of any evidentiary remedy is reserved for determination under the law and rules applicable to a later proceeding.

IX. SETTLEMENT DEMAND

To resolve this matter without litigation:

Option A - Repair by Contractor:

1. Complete repair of all defects within [NUMBER] days
2. All repairs warranted for [NUMBER] years
3. Payment of investigation costs, to the extent recoverable or agreed: $[AMOUNT]
4. Payment of attorney's fees only if supported by contract or applicable law: $[AMOUNT]

Option B - Monetary Settlement:
Payment of $[AMOUNT] within 30 days.

X. CONCLUSION

If Ark. Code Ann. § 4-75-1502 applies, please deliver the written statutory response within 14 days after delivery of this notice. No covered action will be commenced less than 28 days after delivery. The Claimant reserves all rights following a dispute, non-response, rejected offer, failed remedy, or other event addressed by the statute and applicable law.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
Arkansas Bar No. [NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [OWNER NAME]

ENCLOSURES:
☐ Photographs of defects
☐ Expert report(s)
☐ Repair estimates
☐ Copy of construction contract
☐ Correspondence history

cc: [OWNER NAME]
[INSURANCE CARRIER]
[OTHER RECIPIENTS, IF ANY]

ARKANSAS-SPECIFIC PRACTICE NOTES

Covered Notice Procedure (Ark. Code Ann. §§ 4-75-1501 and 4-75-1502):

• Confirm the defect was found within one year after completion of a dwelling; the statute does not apply merely because the project is residential.
• Confirm the claimant and recipient satisfy the statutory definitions. "Supplier" is limited to a window-or-door manufacturer or provider.
• Deliver written notice at least 28 days before a civil action or arbitration and describe the defect and known results.
• Provide reasonable inspection access during normal working hours.
• The recipient's written response is due within 14 days after delivery and must propose inspection with a completion timeframe, offer a remedy without inspection, or dispute the claim.
• After an inspection, the recipient may offer a remedy or dispute the claim. A claimant has 30 days after receipt to accept a remedy offer in writing.
• If a compliant offer is accepted and the recipient successfully remedies the claim, § 4-75-1502(f) bars an action for the claim described in the notice; evaluate a partial-remedy offer carefully before acceptance.
• Section 4-75-1502(h) excludes Attorney General civil-enforcement actions under the Deceptive Trade Practices Act.

Deadlines:

• Act 558 does not add a limitations- or repose-tolling provision. Do not assume the notice process extends another deadline.
• Analyze §§ 16-56-105 and 16-56-111 claim by claim; the five-year written-obligation and three-year unwritten/implied-liability summaries are not universal accrual rules.
• Section 16-56-112 generally imposes a five-year substantial-completion repose period for covered property-damage construction claims, but statutory exceptions and the savings-statute holding in Thompson Thrift, 2025 Ark. App. 193, require review.

Implied Warranties:

• Wawak recognizes implied warranties of habitability, sound workmanship, and proper construction for a new house sold by its builder, unless properly excluded or waived.
• Current Arkansas Model Jury Instruction 1205 requires reasonable and sufficiently clear notice that affords an opportunity to inspect and correct.
• Blagg allows conditional extension to subsequent purchasers for a reasonable time, but only for latent defects, no substantial change, and defects becoming manifest after purchase.

Contractor Licensing:

• Verify the correct residential license and any exemption under §§ 17-25-505 and 17-25-513; the $2,000 provision is one exemption, not the whole licensing statute.
• Section 17-25-515 restricts an unlicensed contractor's contract-enforcement and quantum-meruit actions.

Codes and Damages:

• Identify the exact state or local code, edition, adopting authority, effective date, and section for the project.
• Do not demand attorney fees or investigation costs as automatically recoverable; identify a contract, statute, rule, or settlement basis.

SOURCES AND REFERENCES

• Arkansas General Assembly — Act 558 of 2025 (Ark. Code Ann. §§ 4-75-1501 and 4-75-1502)
• Arkansas General Assembly — Arkansas Law / Arkansas Code access
• Arkansas Department of Labor and Licensing — Residential Contractors Licensing Law, revised July 2025
• Ark. Code Ann. § 16-56-105 — current text mirror
• Ark. Code Ann. § 16-56-111 — current text mirror
• Ark. Code Ann. § 16-56-112 — current text mirror
• Arkansas Model Jury Instructions — Civil AMI 1205
• Arkansas Model Jury Instructions — Civil AMI 1206
• Arkansas Judiciary — April 2025 Appellate Update discussing Thompson Thrift Construction, Inc. v. Modus Studio, PLLC
• Thompson Thrift Construction, Inc. v. Modus Studio, PLLC, 2025 Ark. App. 193

This template is for informational purposes only. Consult a licensed Arkansas attorney before use.