Construction Defect Demand Letter - Montana

CONSTRUCTION DEFECT DEMAND LETTER

STATE OF MONTANA

NOTICE OF CONSTRUCTION DEFECTS

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

[DATE]

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

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.

YOUR RESPONSE IS REQUIRED WITHIN TWENTY-ONE (21) DAYS UNDER MCA SECTION 70-19-427(2), IF THAT STATUTE APPLIES.

I. MONTANA-SPECIFIC LEGAL FRAMEWORK

A. Covered Residential Construction Defect Claims

MCA Sections 70-19-426 through 70-19-428 establish a notice-and-opportunity-to-repair process for a homeowner or covered association asserting property-damage or loss-of-use claims against a builder, builder-vendor, contractor, or subcontractor arising from construction or remodeling of a qualifying residence. The statutory definition excludes tort actions alleging personal injury or wrongful death. It includes subsequent purchasers and defines a construction defect to include defective materials or components, violations of applicable building, plumbing, or electrical codes in effect at the time of construction or remodeling, and failure to follow contract specifications or accepted trade standards.

Before commencing a covered action, the claimant must serve a written notice of claim by personal service or certified mail to the recipient's last-known address. The notice must state that a construction-defect claim is asserted and describe it in reasonable detail sufficient to identify the defect's general nature. Contractual alternative-dispute-resolution procedures remain enforceable and require separate review.

B. Statute of Limitations

Montana law provides the following limitations periods for construction defect claims:

Service of a compliant Section 70-19-427 notice within Section 27-2-208's filing period tolls the limitations period for the construction-defect claim. Counsel must calculate every claim-specific deadline and cannot use the notice process to extend a period that has already expired.

C. Statute of Repose

MCA Section 27-2-208 generally bars a covered action—other than one founded on a written instrument—arising from design, planning, supervision, inspection, construction, or observation of construction more than six (6) years after completion. “Completion” means the earlier of the point when the owner can use the improvement for its intended purpose or execution of a completion certificate. An injury occurring during the sixth year may be sued on within one year after the injury. The section does not affect the responsibility of an owner, tenant, or person in actual possession and control when the right of action arises, and it does not extend another applicable filing period.

D. Claims and Recoverable Damages

For a suit subject to Sections 70-19-427 and 70-19-428, recoverable damages are limited to amounts proximately caused by the defect: reasonable repair costs, including necessary engineering or consulting fees; reasonably necessary temporary-housing expenses during repair; reduction in market value attributable to the defect; and reasonable costs and attorney fees. Assertion of a claim under Section 70-19-427 precludes bringing or maintaining a consumer-protection action under Section 30-14-133 for that claim. Any separate contract, warranty, tort, or statutory theory must be confirmed by Montana counsel rather than assumed.

E. Contractor Licensing Requirements

Effective January 1, 2026, MCA Section 37-45-201 provides that an individual or business entity may not engage in business as a construction contractor without a current department license, subject to Section 37-45-104's detailed exemptions. Those exemptions include, among others, qualifying work under $2,500 and an independent contractor with no employees, who may voluntarily elect to register. Verify the contractor's license, employees, trade-specific license, project, and exemption status; former Title 39, chapter 9 registration citations are no longer current.

II. PROPERTY AND PROJECT INFORMATION

A. Property Description

B. Project Information

C. Parties Involved

General Contractor:

• Name: [NAME]
• Registration Number: [NUMBER]
• 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:
☐ Applicable building, plumbing, or electrical code in effect when the work was performed
☐ Manufacturer's Installation Instructions
☐ Industry Standards (IRC, IBC, ASTM)
☐ Contract Specifications
☐ Contract specifications
☐ Accepted trade standards

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. Statutory Construction Defect

The claimed work constitutes a construction defect under MCA Section 70-19-426 to the extent it involves defective materials, products, or components; violation of an applicable building, plumbing, or electrical code in effect at the time of construction or remodeling; or failure to comply with contract specifications or accepted trade standards.

D. Additional Claim Confirmed by Counsel

[Identify any additional warranty, negligence, statutory, or other theory only after Montana counsel confirms that it applies to the claimant, defendant, project, and requested remedy.]

VI. NOTICE AND OPPORTUNITY TO CURE

A. Request for Response

Upon receipt of this notice, you have the opportunity to:

1. Propose Inspection: Propose to inspect the residence within a specified timeframe and state that, based on the inspection, you will offer to remedy, compromise by payment, or dispute the claim
2. Offer Settlement Without Inspection: Offer to compromise and settle by monetary payment
3. Dispute the Claim: State that you dispute the claim and will neither remedy nor settle it

B. Response Deadline

Your written response is required within TWENTY-ONE (21) DAYS after service of this notice under MCA Section 70-19-427(2), if the statute applies.

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. Statutory Next Steps

• If you dispute the claim or do not respond within 21 days, the claimant may bring the action described in this notice without further notice.
• If the claimant accepts an inspection proposal, reasonable access must be provided as agreed. Within 14 days after completing the inspection, you must serve the written response specified in Section 70-19-427(4)(b).
• A claimant accepting a repair or combined repair-and-payment offer must serve written acceptance within 30 days after receiving it and provide reasonable access during normal working hours under the accepted timetable.
• If the claimant rejects an inspection proposal or settlement offer, the claimant must serve written rejection and may then sue on the described claim. If no acceptance or rejection is received within 30 days after the claimant receives your response, you may terminate the proposal or offer by written notice.

VII. DEMAND FOR INSPECTION ACCESS

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

1. Include an inspection proposal in your statutory response 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

This is a good-faith preservation request. Any evidentiary remedy depends on the duty to preserve, the evidence, prejudice, and court findings.

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 reasonable and necessary engineering or consulting costs: $[AMOUNT]
4. Payment of reasonable costs and attorney fees claimed under MCA Section 70-19-428: $[AMOUNT]

Option B - Monetary Settlement:
Payment of $[AMOUNT] under a written settlement agreement.

X. CONCLUSION

Please respond in writing within 21 days after service of this notice. If no timely response is received, the claimant may bring the action described in this notice without further notice, subject to counsel's confirmation of statutory scope and any contractual dispute-resolution procedure.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
Montana State 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]
Montana Department of Labor and Industry (if applicable)

MONTANA-SPECIFIC PRACTICE NOTES

• Confirm that the claimant, construction professional, residence, defect, and requested relief fit Section 70-19-426 before relying on the statutory process. Personal-injury and wrongful-death tort actions are outside its definition of “action.”
• Serve the notice personally or by certified mail to the recipient's last-known address and retain proof of service.
• Review any contractual arbitration or other dispute-resolution clause; Sections 70-19-426 through 70-19-428 do not supersede contractual ADR.
• Assertion of the Section 70-19-427 claim precludes a Section 30-14-133 consumer-protection action for that claim.
• Calendar the current six-year written-contract period and Section 27-2-208's separate six-year outside limit where applicable. Do not retain the former eight-year written-contract or ten-year construction-repose rules.
• Verify the current Title 37, chapter 45 contractor license and exemptions; former Title 39, chapter 9 registration provisions were repealed or redesignated effective January 1, 2026.

SOURCES AND REFERENCES

• MCA Section 70-19-426: https://mca.legmt.gov/bills/mca/title_0700/chapter_0190/part_0040/section_0260/0700-0190-0040-0260.html
• MCA Section 70-19-427: https://mca.legmt.gov/bills/mca/title_0700/chapter_0190/part_0040/section_0270/0700-0190-0040-0270.html
• MCA Section 70-19-428: https://mca.legmt.gov/bills/mca/title_0700/chapter_0190/part_0040/section_0280/0700-0190-0040-0280.html
• MCA Section 27-2-202: https://mca.legmt.gov/bills/mca/title_0270/chapter_0020/part_0020/section_0020/0270-0020-0020-0020.html
• MCA Section 27-2-208: https://mca.legmt.gov/bills/mca/title_0270/chapter_0020/part_0020/section_0080/0270-0020-0020-0080.html
• MCA Section 30-2-725: https://mca.legmt.gov/bills/mca/title_0300/chapter_0020/part_0070/section_0250/0300-0020-0070-0250.html
• MCA Sections 37-45-201 and 37-45-104: https://mca.legmt.gov/bills/mca/title_0370/chapter_0450/parts_index.html

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