Construction Defect Demand Letter - Kentucky

CONSTRUCTION DEFECT DEMAND LETTER

COMMONWEALTH OF KENTUCKY

NOTICE OF CONSTRUCTION DEFECTS

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

[DATE]

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

Re: 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 of construction defects and serves as notice providing you with the opportunity to inspect, offer to repair, and/or settle this claim before litigation is commenced.

A STATUTORY RESPONSE IS REQUESTED WITHIN TWENTY-ONE (21) DAYS AFTER SERVICE.

I. KENTUCKY-SPECIFIC LEGAL FRAMEWORK

A. Construction Defect Claims in Kentucky

Kentucky's Notice and Opportunity to Repair Act, KRS 411.250 to 411.266, governs covered residential construction-defect actions against a builder. It applies to claims for damage or loss of use of real or personal property caused by a defect in construction of a covered residence; it excludes tort claims for personal injury or wrongful death. For this Act, a homeowner includes a subsequent purchaser, and service means personal service or certified mail to the addressee's last known address. KRS 411.252, 411.254.

KRS 411.258 requires the homeowner to serve a written notice that identifies the construction-defect claim and describes it in reasonable detail. This letter is intended to provide that statutory notice where the Act applies. The Act does not itself create a new theory of liability. KRS 411.254(4).

B. Statute of Limitations

The controlling period depends on the claim, contract date, accrual facts, parties, and remedy. Commonly relevant periods include:

These periods are not interchangeable. The UCC period applies to a contract for sale of goods, not automatically to every construction-services dispute. Under KRS 411.264, service of a notice under KRS 411.258 tolls the limitation period for the underlying action until the statutory date described in KRS 411.264.

C. Statute of Repose

KRS 413.135 states that covered construction-deficiency claims may not be brought more than seven (7) years after statutory substantial completion. For that section, substantial completion means the date the owner first occupied or began using the structure, project, or facility. The statute contains a limited provision for an injury occurring during the seventh year, but it does not extend a shorter limitations period.

Kentucky appellate decisions have repeatedly addressed constitutional limits on applying construction repose statutes. Counsel must determine whether KRS 413.135 may constitutionally be applied to the particular cause of action; this template does not treat seven years as an automatic bar in every case.

D. Implied Warranties in Kentucky

In Crawley v. Terhune, 437 S.W.2d 743, 745 (Ky. 1969), Kentucky held that in the sale of a new dwelling by its builder, there is an implied warranty that the dwelling's major structural features were constructed in a workmanlike manner using suitable materials. The rule is narrower than a universal warranty covering every project, component, contractor, buyer, or defect. KRS 411.252 includes subsequent purchasers within the Notice and Opportunity to Repair Act's definition of homeowner, but KRS 411.254(4) confirms that the Act does not create a new liability theory.

E. Contractor Licensing

Kentucky's Department of Housing, Buildings and Construction licenses or certifies specified trades, including electrical, plumbing, and HVAC professionals, and enforces statewide construction standards. Kentucky does not issue a single statewide general-contractor license for all construction work; local licensing, permitting, and inspection requirements may also apply. Verify every relevant trade license and local requirement for the project.

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

The following is a detailed description of each claimed construction defect:

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:
☐ Kentucky Building Code
☐ Manufacturer's Installation Instructions
☐ Industry Standards (IRC, IBC, ASTM)
☐ Contract Specifications
☐ Implied Warranty of Workmanship
☐ 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 for a New Builder-Sold Dwelling

If the verified facts fit Crawley v. Terhune, the sale of a new dwelling by its builder carries an implied warranty that the dwelling's major structural features were constructed in a workmanlike manner using suitable materials. Delete this claim if the transaction or alleged defect falls outside that rule.

D. Negligence

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

E. Violation of Building Codes

The construction violates the Kentucky Building Code and/or local building codes.

VI. NOTICE AND OPPORTUNITY TO CURE

A. Request for Response

Under KRS 411.258(2), within twenty-one (21) days after service of this notice, the construction professional shall serve a written response by registered mail or personal service that does one of the following:

1. Proposes an inspection to be completed within a specified time frame and states that, based on the inspection, the construction professional will offer to remedy, compromise by payment, or dispute the claim;
2. Offers a monetary compromise without inspection; or
3. States that the construction professional disputes the claim and will neither remedy nor settle it.

If an inspection is accepted, the claimant must provide reasonable access during normal working hours. Within fourteen (14) days after completing the inspection, the construction professional must serve the response required by KRS 411.258(4), which may offer a remedy, offer a monetary compromise, or dispute the claim. An offer may be accepted or rejected in writing; the Act provides a thirty-day response framework for the claimant.

B. Response Deadline

Your written response is requested 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 the construction professional disputes the claim or does not respond within the statutory twenty-one-day period, KRS 411.258(3)(a) permits the claimant to bring the action described in the notice without further notice. This letter does not assert an automatic waiver, evidentiary inference, or sanction beyond the statute's actual consequence.

VII. DEMAND FOR INSPECTION ACCESS

We hereby offer you the opportunity to inspect the property. To schedule an inspection:

1. Contact our office in writing within 21 days after service
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

This is a preservation request. Any remedy for loss or alteration of evidence is for the court to determine under the facts and governing procedural law.

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: $[AMOUNT]
4. Payment of attorney's fees incurred to date: $[AMOUNT]

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

X. CONCLUSION

Please respond in writing within 21 days after service of this notice. If we do not receive a timely statutory response, our client may proceed as permitted by KRS 411.258 and other applicable law.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
Kentucky Bar Association 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]

KENTUCKY-SPECIFIC PRACTICE NOTES

Notice and Opportunity to Repair Act:

• KRS 411.250 to 411.266 is Kentucky's residential construction-defect notice statute
• It covers specified property-damage and loss-of-use actions against a builder, not personal-injury or wrongful-death tort claims
• The notice must describe the claim in reasonable detail and be served personally or by certified mail
• The builder's initial statutory response period is 21 days
• If the builder failed to give the conspicuous contract notice required by KRS 411.260, the Act does not preclude or bar the homeowner's action

Implied Warranty:

• Crawley v. Terhune, 437 S.W.2d 743, 745 (Ky. 1969), applies to the sale of a new dwelling by its builder
• Its verified rule concerns major structural features, workmanlike construction, and suitable materials
• Do not use it as a universal warranty for every construction transaction or subsequent purchaser

Contract Limitations:

• Written contracts executed after July 15, 2014: generally 10 years under KRS 413.160
• Written contracts executed on or before July 15, 2014: generally 15 years under KRS 413.090(2)
• Contracts not in writing: generally 5 years under KRS 413.120(1)
• Accrual, tolling, repose, and claim characterization must be reviewed separately

Contractor Licensing:

• Kentucky does not have statewide general contractor licensing
• Electrical contractors licensed under KRS 227A
• Plumbing contractors licensed under KRS 318
• HVAC contractors licensed under KRS 198B
• Verify local requirements (Louisville, Lexington, etc.)

Kentucky Consumer Protection Act:

• KRS 367.220 may apply only if its statutory elements are met, including a qualifying purchase of goods or services for personal, family, or household purposes, an unlawful practice under KRS 367.170, and resulting ascertainable loss
• The statute authorizes actual damages, appropriate equitable relief, possible punitive damages where otherwise proper, and discretionary fees and costs to the prevailing party; it does not create automatic treble damages
• KRS 367.220(5) supplies its own filing period

SOURCES AND REFERENCES

• KRS 411.252 — definitions and covered residential claims
• KRS 411.254 — applicability and no new theory of liability
• KRS 411.258 — notice, response, inspection, and offer procedure
• KRS 411.260 — builder's contract notice and effect of omission
• KRS 411.264 — tolling after notice
• KRS 413.090 — pre-July 16, 2014 written contracts
• KRS 413.120 — five-year actions
• KRS 413.135 — construction-deficiency repose text
• KRS 413.160 — post-July 15, 2014 written contracts
• KRS 355.2-725 — contracts for sale
• KRS 367.220 — private Consumer Protection Act remedies and filing period
• Kentucky Department of Housing, Buildings and Construction
• Crawley v. Terhune, 437 S.W.2d 743, 745 (Ky. 1969)

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