Construction Defect Demand Letter - Indiana

CONSTRUCTION DEFECT DEMAND LETTER

STATE OF INDIANA

NOTICE PURSUANT TO INDIANA CODE 32-27-3 — NOTICE AND OPPORTUNITY TO REPAIR

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

[DATE]

[CONTRACTOR/BUILDER NAME]
[ADDRESS]
[CITY, STATE ZIP]

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. This letter constitutes formal notice under Indiana Code 32-27-3, Notice and Opportunity to Repair, and provides the statutory opportunity to inspect, offer to repair, settle, or dispute a covered claim before litigation is commenced.

THIS IS A STATUTORY NOTICE FOR A COVERED CLAIM. YOUR INITIAL WRITTEN RESPONSE IS DUE WITHIN TWENTY-ONE (21) DAYS AFTER SERVICE.

I. INDIANA-SPECIFIC LEGAL FRAMEWORK

A. Indiana Notice and Opportunity to Repair Chapter

This notice is provided pursuant to IC 32-27-3, Indiana's Notice and Opportunity to Repair chapter. Confirm that the claimant, construction professional, residence, defect, and requested relief fit the definitions in § 32-27-3-1 before using the statutory track.

Under the Act:

• A covered action concerns damage or loss of use of real or personal property caused by a defect in construction of a defined residence or in a substantial remodeling costing more than 50% of the residence's assessed value. Bankruptcy claims and tort actions for personal injury or wrongful death are excluded.
• A residence includes a single-family house, duplex, triplex, quadraplex, or an individually titled condominium or cooperative unit; covered common areas are included.
• At least 60 days before filing, the claimant must personally serve or send by certified mail a written notice stating the construction-defect claim in reasonable detail sufficient to determine the defect's general nature.
• Within 21 days after service, the construction professional must propose an inspection with a specified completion period, offer a monetary compromise without inspection, or dispute the claim.
• A premature action is subject to dismissal without prejudice and may not proceed until the claimant complies with the chapter.

B. Statute of Limitations

Indiana limitations depend on the substance of the claim and the property or contract interest involved:

C. Statute of Repose

For covered contract, tort, nuisance, and other claims based on a deficiency in an improvement to real property, IC 32-30-1-5(d) bars an action against a statutory “designer” or “possessor” unless commenced within the earlier of:

• ten years after substantial completion of the improvement; or
• for an action based on a design deficiency, twelve years after completion and submission of the plans and specifications to the owner.

The statute defines its covered parties and excludes a possessor's post-completion failure to use reasonable care to maintain the improvement from “deficiency.” Apply the ordinary claim limitation and the repose deadline; the repose statute does not replace a shorter accrued-claim period.

D. Implied Warranties in Indiana

Indiana's implied warranty of habitability is embedded in the sale of a newly built home and protects against defects that substantially impair use and enjoyment. Current controlling law requires a defendant to qualify as a builder-vendor, meaning involvement in both construction and sale of the residence for profit. The Residences at Ivy Quad Unit Owners Ass'n, Inc. v. Ivy Quad Development, LLC, 179 N.E.3d 977 (Ind. 2022).

Do not assert that warranty against a contractor, designer, or other project participant without facts supporting builder-vendor status. Separately identify any express warranty, contractual workmanship obligation, disclaimer, or other claim-specific warranty.

E. Contractor Licensing

Verify the State trade credential, local contractor license or registration, permit, and inspection requirements applicable to the project and defendant. Do not state that a license was required without identifying the governing authority and credential category.

F. Real Property Improvement Contracts

IC 24-5-11 applies to defined improvement contracts over $150 concerning residential real property in Indiana. Section 10 requires the supplier to provide the consumer a completed contract before signature and lists mandatory contents. For contracts entered after June 30, 2017, § 10.6 requires the statutory cancellation disclosure and generally permits cancellation before midnight on the third business day after the later of contract signature or an applicable insurer's final coverage determination. Section 14 classifies a violation as a deceptive act actionable under IC 24-5-0.5.

II. PROPERTY AND PROJECT INFORMATION

A. Property Description

B. Project Information

C. Parties Involved

General Contractor:

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

Subcontractors: (List all subcontractors whose work is believed defective)

III. DESCRIPTION OF DEFECTS

Pursuant to IC 32-27-3-2(a), the following describes each claimed construction defect in reasonable detail sufficient to determine its general nature:

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

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 ☐ Windows/Doors
☐ Plumbing ☐ Electrical ☐ HVAC ☐ Insulation ☐ Drywall/Interior finishes
☐ Flooring ☐ Waterproofing ☐ Drainage ☐ Other: [SPECIFY]

Evidence Supporting Defect:
[Describe supporting evidence - expert reports, photographs, testing results, etc.]

Standards Violated:
☐ Applicable State or local building/permit code
☐ Manufacturer's Installation Instructions
☐ Industry Standards (IRC, IBC, ASTM)
☐ Contract Specifications
☐ Contractual workmanship requirement
☐ Implied Warranty of Habitability

Date 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 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

If the defendant is a builder-vendor and the defect substantially impairs the use and enjoyment of a newly built home, the defect breaches Indiana's implied warranty of habitability. The Residences at Ivy Quad Unit Owners Ass'n, Inc. v. Ivy Quad Development, LLC, 179 N.E.3d 977 (Ind. 2022).

D. Other Warranty or Workmanship Claim

You breached the following express warranty, contractual workmanship requirement, statutory warranty, or other claim-specific obligation: [IDENTIFY THE OBLIGATION, WARRANTOR, TERM, AND BREACH].

E. Negligence

If supported by an independent duty and recoverable injury under current Indiana law, you breached the following duty: [IDENTIFY THE DUTY, BREACH, CAUSATION, AND RECOVERABLE INJURY].

F. Violation of Building Codes

The construction violates the following code or permit requirement in force for this project: [IDENTIFY THE GOVERNING AUTHORITY, CODE EDITION, SECTION, PERMIT REQUIREMENT, AND DEFECT].

VI. STATUTORY NOTICE REQUIREMENTS

A. Initial Response Under the Indiana Notice and Opportunity to Repair Chapter

Pursuant to IC 32-27-3-2(b), within 21 days after service you must serve a written response that does one of the following:

1. Inspection Proposal: Propose to inspect the residence within a specified time and state that, based on the inspection, you will offer to remedy, offer payment, or dispute the claim.
2. Monetary Offer Without Inspection: Offer to compromise and settle by payment; the statute permits an offer to purchase the residence and pay reasonable relocation costs.
3. Dispute: State that you dispute the claim and will neither remedy nor settle it.

B. Response Deadline

Your written response is due within TWENTY-ONE (21) DAYS after service of this notice.

Your response should include:

1. Whether you accept or dispute the claimed defects
2. Whether you wish to inspect the property
3. Your offer, if any, to repair or compensate
4. Any documentation supporting your position

C. Consequences of Non-Response

If you dispute the claim or do not respond within 21 days, the claimant may bring the noticed action without further notice under § 32-27-3-3(a), subject to the 60-day presuit requirement. Rejection, nonresponse to an offer, an accepted inspection, and an accepted repair offer follow separate procedures:

• A claimant who rejects an inspection proposal or pre-inspection monetary offer must serve written rejection before filing. If the claimant neither accepts nor rejects within 60 days after receiving the response, you may terminate the proposal or offer by written notice. IC 32-27-3-3(b)-(d).
• If the claimant accepts inspection, the claimant must provide reasonable access during normal working hours. Within 14 days after inspection, you must serve the report and a no-cost repair offer with a timetable, a monetary offer, or a statement that you will not proceed. IC 32-27-3-4(a)-(b).
• Failure to make the post-inspection response or to proceed under the agreed timetable permits suit without further notice. A claimant rejecting a post-inspection offer must serve written rejection. An unanswered offer may be terminated after 60 days. IC 32-27-3-4(c)-(e).
• Acceptance of a repair offer must be written, within a reasonable time, and no later than 60 days after receipt. The claimant must then provide reasonable access; later changes require written mutual agreement. IC 32-27-3-5.

The statute does not create an automatic adverse inference or evidentiary sanction for failure to respond.

VII. DEMAND FOR INSPECTION ACCESS

If you make a compliant inspection proposal and the claimant accepts it, reasonable access will be provided as required by IC 32-27-3-4(a). To propose an inspection:

1. Contact our office in the written response due within 21 days
2. Propose inspection dates during reasonable business hours
3. Identify all persons who will attend
4. Identify any experts who will participate

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

VIII. PRESERVATION OF EVIDENCE

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

• All contracts and subcontracts
• Plans, specifications, and drawings
• Inspection reports and quality control records
• Correspondence with owner and subcontractors
• Photographs taken during construction
• Daily logs and progress reports
• Warranties from manufacturers
• Insurance policies and certificates

Preservation Request: Preserve the listed material in its existing form. Any preservation duty, inference, sanction, or separate remedy depends on applicable law, the facts, and court order; this letter does not state that a particular consequence is automatic.

IX. SETTLEMENT DEMAND

To resolve this matter without litigation, we demand:

Option A - Repair by Contractor:

1. Complete repair of all identified defects within [NUMBER] days
2. All repairs warranted for minimum of [NUMBER] years
3. Payment of investigation and expert costs recoverable under [CONTRACT/STATUTE/OTHER AUTHORITY]: $[AMOUNT]
4. Payment of attorney's fees recoverable under [CONTRACT/STATUTE/OTHER AUTHORITY]: $[AMOUNT]

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

X. CONCLUSION

Please respond in writing within 21 days after service as required by IC 32-27-3-2(b). The claimant will follow the applicable rejection, inspection, offer, and filing provisions of IC 32-27-3.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
Indiana Attorney 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]

INDIANA-SPECIFIC PRACTICE NOTES

Notice and Opportunity to Repair (IC 32-27-3):

• Covered claimant must serve notice at least 60 days before suit; initial response is due within 21 days.
• Service means personal service or certified mail to the addressee's last known address.
• Scope includes defined one-to-four-family residences and individually titled condominium/cooperative units, including covered common areas; substantial remodeling must exceed 50% of assessed value.
• Personal-injury, wrongful-death, and bankruptcy claims are excluded from the chapter's “action” definition.
• Premature filing is subject to dismissal without prejudice under § 32-27-3-6.

Implied Warranties:

• The implied warranty of habitability covers a newly built home's substantial impairment of use and enjoyment.
• The defendant must be a builder-vendor involved in both construction and sale for profit under Ivy Quad.
• Treat other workmanship, express-warranty, statutory-warranty, and disclaimer issues as contract- and transaction-specific.

Contractor Licensing:

• Verify each State trade credential and each local contractor license, registration, permit, and inspection requirement.
• Identify the exact credential and issuing authority before alleging unlicensed work.

Economic Loss Doctrine:

• Indiana's economic-loss analysis is fact-specific. Ivy Quad explains that purely economic loss and contractual connections among construction participants may matter, while other-property damage or the absence of an established contractual chain can defeat early categorical dismissal.
• Identify the damaged property, claimed loss, contracts, and independent duty before including a negligence theory.

Home Improvement Contracts:

• IC 24-5-11 applies to defined contracts over $150 concerning residential real property in Indiana.
• Section 10 requires a completed contract before consumer signature and specifies mandatory terms.
• Section 10.6 supplies the cancellation notice and three-business-day cancellation rule for contracts entered after June 30, 2017.
• Section 14 classifies a violation as a deceptive act actionable under IC 24-5-0.5.

Limitations and Repose:

• Apply the claim-specific limitation in IC 34-11-2 and the outside limit in IC 32-30-1-5; do not treat repose as an alternative longer filing period.
• Real-property injury and unwritten-contract claims are generally six years under § 34-11-2-7; injury to personal property or a person is generally two years under § 34-11-2-4.
• Written-contract classification requires care: § 34-11-2-9 covers payment-of-money contracts, while § 34-11-2-11 covers other written contracts.

Expert Witnesses:

• Determine whether expert testimony is needed for the particular defect, professional standard, causation issue, and damages; do not state that every claim automatically requires an expert.

SOURCES AND REFERENCES

• Current Indiana Code, Title 32
• Current Indiana Code, Title 34
• Current Indiana Code, Title 24
• Current Indiana Code, Title 26
• 2003 official enactment materials for IC 32-27-3
• The Residences at Ivy Quad Unit Owners Ass'n, Inc. v. Ivy Quad Development, LLC, 179 N.E.3d 977 (Ind. 2022)
• Indiana Attorney General consumer guidance for home-improvement contracts

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