Construction Defect Demand Letter - Ohio

OHIO RESIDENTIAL CONSTRUCTION DEFECT NOTICE AND DEMAND

NOTICE UNDER OHIO REVISED CODE SECTION 1312.04, IF COVERED

Ohio Revised Code Chapter 1312 establishes a presuit process for a defined owner and residential contractor who contracted for construction or substantial rehabilitation of a covered residential building. It does not govern every commercial project, minor repair, personal-injury claim, or claim against a party outside the statutory definitions.

Ohio counsel should confirm coverage, calculate each deadline, and review the contract's notice and arbitration terms before sending.

Date: [__/__/____]

Permitted delivery method:

• ☐ Mail
• ☐ Telegram
• ☐ Personal delivery
• ☐ Email or facsimile indicated by the contractor for communications
• ☐ Other contractor-indicated means: [METHOD]

To:

[RESIDENTIAL CONTRACTOR NAME]

[ADDRESS]

[CITY, STATE ZIP]

Re: Notice of construction defects under Ohio Revised Code Section 1312.04

Owner: [NAME]

Residential building: [ADDRESS]

Contract: [DATE AND DESCRIPTION]

Earliest proposed action or arbitration date: [__/__/____]

Dear [RECIPIENT]:

[LAW FIRM OR SENDER] represents [OWNER NAME] concerning the residential building identified above. This letter provides the written notice required by Ohio Revised Code Section 1312.04 and itemizes the alleged construction defects, supporting inspection material, and contact information.

Under Section 1312.05, the residential contractor must provide a good-faith written response within 21 days after the owner sends or delivers the notice. The response date is calculated as [__/__/____].

1. CHAPTER 1312 COVERAGE CHECK

A. Parties and contract

Chapter 1312 applies only when an owner and residential contractor entered into a contract for construction or substantial rehabilitation of a residential building.

• ☐ The owner or prospective owner contracted with the recipient.
• ☐ The recipient contracted for pay and had primary responsibility for the construction or substantial rehabilitation.
• ☐ The claim seeks real-property damages, loss-of-use damages, or indemnity caused by a construction defect.
• ☐ The proposed matter is a civil action in contract or tort or an arbitration against that residential contractor.

B. Covered residential building

Section 1312.01 defines a residential building to include:

• a one-, two-, or three-family dwelling house or a dwelling unit in that structure;
• an incidental accessory structure;
• a condominium unit to which the owner holds title; and
• a model structure used to promote sales of a similar dwelling house.

Property classification:

• ☐ One-family dwelling
• ☐ Two-family dwelling
• ☐ Three-family dwelling
• ☐ Unit within such a structure
• ☐ Titled condominium unit
• ☐ Incidental accessory structure
• ☐ Model structure
• ☐ Not covered or uncertain: [EXPLAIN]

C. Construction or substantial rehabilitation

A construction defect is a deficiency arising directly or indirectly from construction or substantial rehabilitation. The statutory definition of substantial rehabilitation includes adding a room or removing or installing a wall, partition, or part of the structural design.

• ☐ New construction
• ☐ Room addition
• ☐ Wall, partition, or structural-design removal or installation
• ☐ Other substantial rehabilitation: [DESCRIBE]
• ☐ Work may fall outside Chapter 1312: [EXPLAIN]

D. Statutory exclusions or bypass

• ☐ The contractor has not filed a mechanics lien and has not commenced arbitration or legal action against the owner.
• ☐ The claim does not allege personal injury or wrongful death resulting from a construction defect.

Under Section 1312.04(D), the chapter does not apply if the contractor files a mechanics lien or begins arbitration or legal action against the owner. Section 1312.08(C) excludes tort actions alleging personal injury or wrongful death resulting from a construction defect.

2. OWNER, CONTRACTOR, AND BUILDING INFORMATION

Other involved parties:

3. ITEMIZED CONSTRUCTION DEFECTS

Section 1312.04(B) requires the owner to assert a construction-defect claim by itemizing and describing the defects. Complete a separate entry for every condition.

DEFECT 1 — [SHORT TITLE]

Exact location: [LOCATION]

Observed condition: [DETAILED DESCRIPTION]

Date first observed: [__/__/____]

Progression or prior repair: [DESCRIPTION]

Resulting real-property damage or loss of use: [DESCRIPTION]

Potential cause, if known: [DESCRIPTION OR “UNDER INVESTIGATION”]

Potential repair, if known: [DESCRIPTION OR “UNDER INVESTIGATION”]

Supporting standard: [CONTRACT TERM, EXPRESS WARRANTY, PLAN, SPECIFICATION, APPLICABLE CODE, INSTALLATION INSTRUCTION, OR EXPERT FINDING]

Estimated amount: $[AMOUNT OR PENDING]

DEFECT 2 — [SHORT TITLE]

[REPEAT THE DEFECT 1 FORMAT.]

An owner may provide the contractor with a cause and repair description requested under Section 1312.04(C) only to the extent the owner has that knowledge.

4. INSPECTION DOCUMENTATION

Section 1312.04(B)(2) requires the notice to include or attach a copy of documentation concerning the defects prepared by a person who inspected the residential building for the owner.

Attached or enclosed:

• ☐ Inspector report dated [__/__/____]
• ☐ Engineer or architect report dated [__/__/____]
• ☐ Consultant report dated [__/__/____]
• ☐ Testing report dated [__/__/____]
• ☐ No third-party inspection document exists; counsel has reviewed the statutory requirement

Additional supporting material:

• ☐ Dated photographs or video
• ☐ Contract, plans, specifications, and change orders
• ☐ Permits and inspection records
• ☐ Certificate of occupancy
• ☐ Express warranty
• ☐ Prior notices and responses
• ☐ Repair estimates
• ☐ Prior repair records
• ☐ Other: [DESCRIPTION]

5. CONTRACTOR'S 21-DAY RESPONSE

Section 1312.05 requires a good-faith written response within 21 days after the owner sends or delivers the notice. The response must offer to:

1. inspect the residential building;
2. compromise and settle without inspection; or
3. dispute the claim.

If the contractor does not timely respond or disputes the claim, the owner is deemed compliant and may begin arbitration or file a dwelling action without further notice.

Response due: [__/__/____]

Send response to: [NAME, ADDRESS, EMAIL]

6. OWNER'S 14-DAY ACCEPTANCE OR REJECTION

If the contractor offers inspection or settlement, the owner should calendar the 14-day response period.

• ☐ Offer accepted in writing on [__/__/____]
• ☐ Offer rejected in writing on [__/__/____]
• ☐ Rejection states the reason as required by Section 1312.05(C)
• ☐ No timely contractor response
• ☐ Contractor disputed the claim

After a written, reasoned rejection, the owner has complied with the chapter and may begin arbitration or file a dwelling action without further notice.

7. INSPECTION PATH

If the owner accepts an inspection offer within 14 days:

• the owner must allow reasonable access during normal working hours;
• the contractor must inspect within 14 days after acceptance; and
• within 10 days after inspection, the contractor must provide a written repair offer, settlement offer, or statement that it does not intend to remedy the defects.

A repair offer under Section 1312.06(B)(1) must be at no cost to the owner and include an inspection report, a prediction of additional construction work needed for each defect, and a completion timetable.

Inspection details:

The owner may proceed without further notice if the contractor misses the inspection deadline, fails to provide the post-inspection response, states it will not remedy the defects, or fails to perform in the promised manner or timetable.

8. SIXTY-DAY WAITING PERIOD, TOLLING, AND PREMATURE FILING

Unless an earlier statutory compliance route applies, Section 1312.07 permits the owner to begin arbitration or file a dwelling action 60 days after providing the Section 1312.04 notice.

Section 1312.08(A) tolls applicable statutes of limitation and repose from the time the owner sends the defect notice until the owner complies with the chapter. If the owner files or begins arbitration without compliance, Section 1312.08(B) requires dismissal without prejudice; the owner may refile after compliance.

Do not assume the statutory tolling began before the notice was sent or continues after compliance.

9. PROPOSED RESOLUTION

Option A — Repair

• Defects accepted: [IDENTIFY]
• Repair scope: [DESCRIPTION]
• Responsible contractor: [NAME]
• Credential and permits: [DESCRIPTION]
• Start: [__/__/____]
• Completion: [__/__/____]
• Occupant/property protection: [DESCRIPTION]
• Temporary measures or relocation: [DESCRIPTION]
• Post-repair testing: [DESCRIPTION]
• Written repair warranty: [TERMS]
• Other payment: $[AMOUNT AND BASIS]

Option B — Monetary Settlement

• Payment: $[AMOUNT]
• Payment date: [__/__/____]
• Repair responsibility after payment: [DESCRIPTION]
• Proposed release scope: [DESCRIPTION]

An owner is not obligated to accept a contractor's offer. If an accepted offer is fulfilled in compliance with Chapter 1312, Section 1312.06(E) bars a dwelling action or arbitration for that claim. Any agreement should precisely define the defects and claims resolved.

10. CLAIMS AND DAMAGES FOR COUNSEL REVIEW

Potential theories depend on the contract, parties, work, warranties, and facts:

• ☐ Breach of an identified written contract provision
• ☐ Breach of an identified oral or implied contract
• ☐ Breach of an identified express warranty or guarantee
• ☐ Negligence or professional negligence
• ☐ Qualifying contract-for-sale warranty claim
• ☐ Code or licensing issue based on identified conduct
• ☐ Other: [IDENTIFY]

Potential damages:

Counsel must determine whether each theory and category of damages, fees, costs, interest, or other relief is available and factually supported.

11. LIMITATIONS AND REPOSE

Do not use one limitations period for every construction claim.

• Written contract: Section 2305.06 generally provides six years after accrual, subject to listed statutory exceptions and transition rules for older accruals.
• Unwritten contract: Section 2305.07(A) generally provides four years. Section 2305.07 contains separate rules for statutory liabilities and defined consumer transactions.
• Listed torts: Section 2305.09 provides four years for its enumerated claims, including fraud and certain injury-to-rights claims; its discovery text is limited to the claims identified there.
• Contracts for sale: Section 1302.98 provides four years for a qualifying contract for sale and should not be applied automatically to construction services.
• Construction repose: Section 2305.131 covers specified bodily-injury, property-injury, wrongful-death, contribution, and indemnity claims arising from a defective and unsafe condition of an improvement to real property against persons performing services or furnishing the listed design and construction work.
• Substantial completion: Section 2305.131(G) uses the earlier of first use by the owner or tenant or first availability for use after completion in accordance with the contract, including agreed changes.
• Repose qualifications: The statute includes a two-year provision for a defect discovered within the ten-year period but less than two years before expiration, a disability provision, a possession-and-control exclusion, a fraud restriction on the defense, and treatment for a still-operative express warranty or guarantee longer than ten years.

Calculate each limitation, repose, warranty, and Chapter 1312 deadline independently.

12. CONTRACTOR LICENSING AND LOCAL REGISTRATION

Chapter 4740 state licenses concern commercial construction projects in the electrical, HVAC, refrigeration, plumbing, and hydronics trades. Section 4740.01's “construction project” definition excludes a residential building as defined in Section 3781.06.

Current Ohio Department of Commerce guidance states that local building and health departments regulate residential contractors, although a locality may require a Chapter 4740 commercial license for residential work.

Verify the exact person and company, trade, project type, local registration, permits, and state license through the responsible agencies.

13. RECORD PRESERVATION

Please preserve relevant project records and materials, including contracts, subcontracts, plans, specifications, change orders, permits, inspection records, communications, photographs, daily logs, warranty documents, invoices, testing data, insurance information, and prior repair records. Available remedies for missing evidence depend on the facts and governing law.

14. CONCLUSION

Please acknowledge receipt and provide the Section 1312.05 response by [__/__/____]. Direct communications to [CONTACT NAME] at [CONTACT INFORMATION].

Nothing in this letter waives a claim, defense, remedy, contract term, or deadline. No settlement or release is effective unless stated in a signed agreement.

Respectfully,

[LAW FIRM OR SENDER NAME]

By: _________________________________

[ATTORNEY OR OWNER NAME]

[OHIO ATTORNEY REGISTRATION NUMBER, IF APPLICABLE]

[ADDRESS]

[TELEPHONE]

[EMAIL]

ENCLOSURES

• ☐ Required owner-inspection documentation
• ☐ Photographs or video
• ☐ Contract, plans, specifications, and change orders
• ☐ Express warranty
• ☐ Repair estimates
• ☐ Other: [DESCRIPTION]

ATTORNEY REVIEW CHECKLIST

1. Confirm every Chapter 1312 definition and the chapter's personal-injury/wrongful-death and contractor-action exceptions.
2. Confirm that the notice itemizes each defect, attaches owner-inspection documentation, and includes all required names, addresses, telephone numbers, and the building address.
3. Preserve proof of the notice date and delivery method; calendar 21-, 14-, 14-, 10-, and 60-day deadlines as applicable.
4. Document the event that completes Chapter 1312 compliance and the resulting tolling period.
5. Review the contract's arbitration, mediation, inspection, notice, warranty, indemnity, and limitation provisions.
6. Calculate the current claim-specific limitation and Section 2305.131 repose periods, including transition rules and exceptions.
7. Verify local residential-contractor credentials and any applicable Chapter 4740 specialty-trade license.

OFFICIAL SOURCES

• Ohio Revised Code Chapter 1312: https://codes.ohio.gov/ohio-revised-code/chapter-1312
• Section 2305.06 written-contract limitations: https://codes.ohio.gov/ohio-revised-code/section-2305.06
• Section 2305.07 unwritten-contract and other limitation categories: https://codes.ohio.gov/ohio-revised-code/section-2305.07
• Section 2305.09 listed four-year torts: https://codes.ohio.gov/ohio-revised-code/section-2305.09
• Section 2305.131 construction repose: https://codes.ohio.gov/ohio-revised-code/section-2305.131
• Section 1302.98 contracts-for-sale limitation: https://codes.ohio.gov/ohio-revised-code/section-1302.98
• Section 4740.01 licensing definitions: https://codes.ohio.gov/ohio-revised-code/section-4740.01
• Ohio Construction Industry Licensing Board: https://com.ohio.gov/divisions-and-programs/industrial-compliance/boards/ohio-construction-industry-licensing-board

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