CONSTRUCTION DEFECT DEMAND LETTER

STATE OF NORTH CAROLINA

NOTICE OF CONSTRUCTION DEFECTS AND DEMAND FOR RELIEF

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

[DATE]

[CONTRACTOR/BUILDER NAME]
[ADDRESS]
[CITY, STATE ZIP]
North Carolina 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 a demand for repair or compensation before litigation is commenced.

PLEASE TREAT THIS LETTER AS A FORMAL DEMAND. A TIMELY RESPONSE IS REQUESTED WITHIN THIRTY (30) DAYS.

I. NORTH CAROLINA-SPECIFIC LEGAL FRAMEWORK

A. North Carolina Construction Law

North Carolina law provides comprehensive remedies for construction defects through both statutory and common law. The General Contractor Licensing Act, N.C.G.S. Chapter 87, and related provisions govern construction practices and licensing requirements.

B. Statute of Limitations

North Carolina law provides the following limitations periods for construction defect claims:

C. Statute of Repose

N.C.G.S. Section 1-50(a)(5) establishes a six (6) year statute of repose for improvements to real property, running from the last act or omission giving rise to the cause of action.

D. Implied Warranties in North Carolina

North Carolina recognizes the following implied warranties in residential construction:

1. Implied Warranty of Workmanlike Construction: Builders impliedly warrant that construction will be performed in a workmanlike manner. Hartley v. Ballou (N.C. 1972), 209 S.E.2d 776.

2. Implied Warranty of Habitability: New home builders warrant homes are fit for habitation. Griffin v. Wheeler-Leonard & Co. (N.C. App. 1982), 290 S.E.2d 484.

E. Contractor Licensing Requirements

Under N.C.G.S. Section 87-1 et seq., general contractors must be licensed by the North Carolina Licensing Board for General Contractors for projects over $30,000. Unlicensed contractors cannot enforce contracts and may face penalties.

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: (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:
[ ] North Carolina State 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 of Habitability

Under North Carolina law, builders impliedly warrant that new homes are fit for habitation. Griffin v. Wheeler-Leonard & Co., 290 S.E.2d 484 (N.C. App. 1982).

D. Breach of Implied Warranty of Workmanlike Construction

Under North Carolina law, construction must be performed in a workmanlike manner. Hartley v. Ballou, 209 S.E.2d 776 (N.C. 1972).

E. Negligence

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

F. Violation of Building Codes

The construction violates the North Carolina State Building Code and/or local building codes.

VI. 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 fifteen (15) 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]

VII. 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

Spoliation Warning: Failure to preserve evidence may result in adverse inference instructions and sanctions.

VIII. 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.

IX. CONCLUSION

Please respond in writing within 30 days of receipt of this notice. If we do not receive a timely response, our client will proceed with litigation without further notice.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
North Carolina 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]
North Carolina Licensing Board for General Contractors (if applicable)

NORTH CAROLINA-SPECIFIC PRACTICE NOTES

Statute of Repose (N.C.G.S. Section 1-50(a)(5)):
- 6-year repose period for improvements to real property
- Runs from the last act or omission giving rise to the claim
- Applies to all claims arising from construction

Implied Warranties:
- Warranty of habitability recognized for new residential construction
- Warranty of workmanlike construction applies to all work
- May extend to subsequent purchasers under privity analysis

Contractor Licensing:
- General contractors must be licensed for projects over $30,000
- Verify license status with NC Licensing Board for General Contractors
- Unlicensed contractors cannot enforce contracts

Economic Loss Rule:
- North Carolina applies economic loss rule limiting tort recovery
- Contract claims typically required for purely economic losses
- Lord v. Customized Consulting Specialty, Inc., 643 S.E.2d 28 (N.C. App. 2007)

Discovery Rule:
- Statute of limitations may be tolled until defect discovered or should have been discovered
- Applies to latent defects not discoverable through reasonable inspection

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