CONSTRUCTION DEFECT DEMAND LETTER

STATE OF ARIZONA

NOTICE PURSUANT TO ARIZONA PURCHASER DWELLING ACT (A.R.S. SECTIONS 12-1361 TO 12-1366)

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

[DATE]

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

Re: STATUTORY NOTICE OF CONSTRUCTION DEFECTS PURSUANT TO A.R.S. SECTION 12-1363
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. This letter constitutes formal notice of construction defects pursuant to the Arizona Purchaser Dwelling Act, Arizona Revised Statutes Sections 12-1361 through 12-1366, and serves as the required pre-litigation notice providing you with the statutory opportunity to inspect, offer to repair, and/or settle this claim before litigation is commenced.

THIS IS A STATUTORY NOTICE REQUIRED UNDER ARIZONA LAW. YOUR TIMELY RESPONSE IS REQUIRED WITHIN NINETY (90) DAYS.

I. ARIZONA-SPECIFIC LEGAL FRAMEWORK

A. Arizona Purchaser Dwelling Act (A.R.S. Sections 12-1361 to 12-1366)

This notice is provided pursuant to Arizona's Purchaser Dwelling Act, which establishes mandatory pre-litigation procedures for dwelling construction defect claims:

Key Requirements:
- A.R.S. Section 12-1363(A): Claimant must provide written notice at least 90 days before filing an action
- A.R.S. Section 12-1363(B): Notice must describe each alleged defect in reasonable detail
- A.R.S. Section 12-1363(C): Seller/contractor must respond within 90 days with:
- Offer to repair at no cost to claimant
- Offer of monetary settlement
- Dispute of the claim with supporting reasons
- A.R.S. Section 12-1363(D): Claimant must allow reasonable access for inspection

B. Covered Defects Under the Act

The Purchaser Dwelling Act covers defects in:
- Design of the dwelling
- Construction of the dwelling
- Alteration or repair of the dwelling
- Materials and products used in construction

C. Statute of Limitations

D. Statute of Repose

A.R.S. Section 12-552 establishes an eight (8) year statute of repose for construction defect claims:

• Runs from substantial completion of the improvement
• Applies to actions against contractors, architects, engineers, and others
• Includes an additional one (1) year after discovery if defect discovered in years 7-8
• Patent defects: Must be discovered within 8 years
• Latent defects: Discovery rule applies within 8-year period

E. Implied Warranties in Arizona

Arizona recognizes:

1. Implied Warranty of Habitability: Builders warrant new homes are fit for habitation. Richards v. Powercraft Homes, Inc. (Ariz. 1984), 678 P.2d 427.

2. Implied Warranty of Workmanlike Quality: Construction must be performed in a workmanlike manner. Columbia Western Corp. v. Vela (Ariz. App. 1978), 592 P.2d 1294.

F. Arizona Registrar of Contractors (ROC)

Under A.R.S. Section 32-1101 et seq., contractors must be licensed by the Arizona Registrar of Contractors. Unlicensed contracting is a Class 1 misdemeanor, and unlicensed contractors cannot maintain actions for compensation.

ROC Complaint Process: In addition to civil remedies, complaints may be filed with the ROC, which has authority to order restitution up to the contract amount plus $30,000.

II. PROPERTY AND PROJECT INFORMATION

A. Property Description

B. Project Information

C. Parties Involved

General Contractor:
- Name: [NAME]
- ROC License Number: [NUMBER]
- Address: [ADDRESS]
- Contact: [PHONE/EMAIL]

Subcontractors:

Design Professionals:

III. DESCRIPTION OF DEFECTS

Pursuant to A.R.S. Section 12-1363(B), the following is a detailed description of each claimed construction defect:

DEFECT #1: [TITLE - e.g., STUCCO CRACKING AND WATER INTRUSION]

Location: [Specific location within the property]

Description: [Detailed description of the defect, including how it manifests, when it was discovered, and any progression]

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

Arizona Building Code Violations:
[ ] Arizona Residential Code (based on IRC)
[ ] Manufacturer's Installation Instructions
[ ] Industry Standards (ASTM, AAMA, etc.)
[ ] Contract Specifications
[ ] Plans and Drawings

Date First Observed: [DATE]

Consequential Damages:
[Describe any consequential damage, e.g., water intrusion, mold growth, structural movement]

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 applicable building codes.

B. Breach of Express Warranty

You provided express warranties regarding quality and durability of construction which you have breached.

C. Breach of Implied Warranty of Habitability

Under Arizona law, builders impliedly warrant that new homes are fit for habitation. Richards v. Powercraft Homes, Inc., 678 P.2d 427 (Ariz. 1984).

D. Breach of Implied Warranty of Workmanlike Quality

Under Arizona law, construction must be performed in a workmanlike manner. Columbia Western Corp. v. Vela, 592 P.2d 1294 (Ariz. App. 1978).

E. Negligence

You owed a duty of care to perform construction in accordance with the applicable standard of care and breached that duty, proximately causing damages.

F. Violation of Building Codes

The construction violates the Arizona Residential Code and/or local building codes.

G. Registrar of Contractors Violations

[If applicable] You have violated A.R.S. Section 32-1154, including [specify violations].

VI. STATUTORY NOTICE REQUIREMENTS

A. Your Rights Under the Purchaser Dwelling Act

Pursuant to A.R.S. Section 12-1363(C), upon receipt of this notice, you have 90 days to:

1. Offer to Repair: Make a written offer to repair the defect at no cost to the claimant
2. Offer Settlement: Make a written offer of monetary settlement
3. Dispute the Claim: Provide written dispute with reasons and supporting documentation

B. Inspection Rights

Pursuant to A.R.S. Section 12-1363(D):
- You are entitled to reasonable access to inspect the dwelling
- Inspection must occur at mutually convenient times
- Our client will provide reasonable access upon request

C. Response Deadline

Your written response is due within NINETY (90) DAYS of receipt of this notice, which is on or before [CALCULATE DATE].

D. Consequences of Non-Response

Per A.R.S. Section 12-1364, if you fail to respond within 90 days:
- Claimant may file an action without further notice
- Court may consider non-response in any fee-shifting determination
- You waive certain defenses available under the Act

VII. DEMAND FOR INSPECTION ACCESS

We will provide reasonable access for inspection as required by A.R.S. Section 12-1363(D). To schedule:

1. Contact our office in writing
2. Propose inspection dates during reasonable business hours
3. Identify all persons who will attend
4. Identify any experts or consultants who will participate
5. Describe any destructive testing proposed (requires advance approval)

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

VIII. PRESERVATION OF EVIDENCE

You are hereby directed to preserve all documents and materials relating to construction:

• All contracts, subcontracts, and purchase orders
• Plans, specifications, and drawings
• All change orders and modifications
• Inspection reports and quality control records
• All correspondence with owner, subcontractors, and suppliers
• Construction photographs
• Daily logs, progress reports, and meeting minutes
• Warranties from manufacturers
• Insurance policies and certificates
• ROC bond information

Spoliation Warning: Arizona courts recognize spoliation claims. Failure to preserve evidence may result in adverse inference instructions and sanctions.

IX. ROC COMPLAINT NOTICE

In addition to the civil remedies sought herein, please be advised that our client reserves the right to file a complaint with the Arizona Registrar of Contractors. Under A.R.S. Section 32-1155, the ROC has authority to:

• Suspend or revoke contractor licenses
• Order restitution up to contract amount plus $30,000
• Impose civil penalties
• Require corrective action

X. SETTLEMENT DEMAND

To resolve this matter without litigation, we demand:

Option A - Repair by Contractor:
1. Complete repair of all identified defects by licensed contractors
2. All repairs completed within [NUMBER] days
3. All repairs warranted for minimum of [NUMBER] years
4. Payment of all expert and investigation costs: $[AMOUNT]
5. Payment of attorney's fees incurred to date: $[AMOUNT]

Option B - Monetary Settlement:
Payment of $[AMOUNT] within 30 days, representing:
- Full cost of repair
- Investigation and expert costs
- Related damages

XI. CONCLUSION

Please respond in writing within 90 days of receipt of this notice as required by A.R.S. Section 12-1363. Failure to respond timely will result in our client proceeding with litigation as permitted by A.R.S. Section 12-1364.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
State Bar of Arizona 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 - via separate notice]
Arizona Registrar of Contractors (potential future complaint)

ARIZONA-SPECIFIC PRACTICE NOTES

Purchaser Dwelling Act (A.R.S. Sections 12-1361 to 12-1366):
- 90-day pre-suit notice mandatory for dwelling defect claims
- "Dwelling" defined broadly - includes condos, townhouses, single-family
- Notice must describe defects in "reasonable detail"
- Contractor response options: repair, settle, or dispute with reasons
- Noncompliance may bar or limit claims

Arizona Registrar of Contractors (ROC):
- Separate administrative remedy available
- Can order restitution up to contract + $30,000
- Recovery bond may provide additional source of recovery
- Verify license status at www.roc.az.gov

Desert Climate Considerations:
- Stucco cracking common issue in Arizona
- Expansion/contraction from extreme heat
- Monsoon water intrusion claims
- Proper drainage critical

Expert Witnesses:
- Arizona Rule of Civil Procedure 26.1 requires expert disclosure
- Construction experts typically required for complex defect cases

Common Arizona Defects:
- Stucco failures and cracking
- Pool and spa construction defects
- Foundation issues (expansive soils)
- HVAC inadequacy for climate
- Roof tile installation defects

This template is for informational purposes only and does not constitute legal advice. Consult a licensed Arizona attorney before use.