CONSTRUCTION DEFECT DEMAND LETTER
STATE OF OREGON
STATUTORY NOTICE PURSUANT TO ORS 701.560 ET SEQ.
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND REGULAR FIRST-CLASS MAIL
[DATE]
[CONTRACTOR/BUILDER NAME]
[ADDRESS]
[CITY, STATE ZIP]
Oregon CCB License No.: [LICENSE NUMBER]
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 of construction defects pursuant to the Oregon Construction Defect Notice and Opportunity to Repair Act, ORS 701.560 through 701.595, and serves as the required pre-litigation notice providing you with the statutory opportunity to inspect, offer to repair, and/or settle this claim before litigation is commenced.
THIS IS A STATUTORY NOTICE REQUIRED UNDER OREGON LAW. YOUR TIMELY RESPONSE IS REQUIRED WITHIN THE STATUTORY PERIOD.
I. OREGON-SPECIFIC LEGAL FRAMEWORK
A. Oregon Construction Defect Notice and Opportunity to Repair Act
This notice is provided pursuant to ORS 701.560 et seq., Oregon's notice and opportunity to repair law, which establishes mandatory pre-litigation procedures for residential construction defect claims.
Under the Act:
- The claimant must provide written notice of claimed defects at least 90 days before filing suit
- The contractor may inspect the property and offer repairs or settlement
- The notice must describe the defects in reasonable detail
- Failure to comply with the notice requirements may bar or limit the action
B. Statute of Limitations
Oregon law provides the following limitations periods for construction defect claims:
| Claim Type | Limitations Period | Authority |
|---|---|---|
| Breach of Written Contract | 6 years | ORS 12.080(1) |
| Breach of Oral Contract | 6 years | ORS 12.080(1) |
| Negligence/Tort | 2 years | ORS 12.110(1) |
| Breach of Warranty | 4 years (UCC) | ORS 72.7250 |
| Fraud | 2 years from discovery | ORS 12.110(1) |
C. Statute of Repose
ORS 12.135 establishes a ten (10) year statute of repose for improvements to real property, running from substantial completion or abandonment of the improvement.
D. Implied Warranties in Oregon
Oregon recognizes the following implied warranties in residential construction:
-
Implied Warranty of Workmanlike Construction: Builders impliedly warrant that construction will be performed in a workmanlike manner. Abraham v. T. Henry Constr., Inc. (Or. App. 1995), 892 P.2d 726.
-
Implied Warranty of Habitability: New home builders warrant homes are fit for habitation. Ellingson v. Sloan (Or. 1975), 527 P.2d 1100.
E. Contractor Licensing Requirements
Under ORS Chapter 701, all contractors must be licensed with the Oregon Construction Contractors Board (CCB). Unlicensed contractors cannot enforce contracts and face civil penalties.
II. PROPERTY AND PROJECT INFORMATION
A. Property Description
| Item | Details |
|---|---|
| Property Address | [COMPLETE ADDRESS] |
| County | [COUNTY], Oregon |
| Property Type | [ ] Single-family home [ ] Condominium [ ] Townhouse [ ] Multi-family |
| Year Built | [YEAR] |
| Square Footage | [SQUARE FEET] |
| Current Owner(s) | [NAME(S)] |
| Date of Purchase | [DATE] |
| Purchase Price | $[AMOUNT] |
B. Project Information
| Item | Details |
|---|---|
| Project Type | [ ] New construction [ ] Remodel [ ] Addition [ ] Repair |
| General Contractor | [NAME] |
| OR CCB License No. | [NUMBER] |
| Contract Date | [DATE] |
| Contract Amount | $[AMOUNT] |
| Substantial Completion | [DATE] |
| Final Completion | [DATE] |
| Warranty Period | [DESCRIBE] |
C. Parties Involved
General Contractor:
- Name: [NAME]
- CCB License Number: [NUMBER]
- Address: [ADDRESS]
- Contact: [PHONE/EMAIL]
Subcontractors: (List all subcontractors whose work is believed defective)
| Trade | Company Name | CCB License No. | Work Performed |
|---|---|---|---|
| [TRADE] | [NAME] | [NUMBER] | [DESCRIPTION] |
| [TRADE] | [NAME] | [NUMBER] | [DESCRIPTION] |
III. DESCRIPTION OF DEFECTS
Pursuant to ORS 701.565, 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:
[ ] Oregon Structural Specialty Code
[ ] Oregon Residential Specialty 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
| Defect | Location | Est. Repair Cost | Related Damages |
|---|---|---|---|
| [DEFECT 1] | [LOCATION] | $[AMOUNT] | $[AMOUNT] |
| [DEFECT 2] | [LOCATION] | $[AMOUNT] | $[AMOUNT] |
| SUBTOTAL - Repair Costs | $[AMOUNT] | ||
| Consequential Damages | $[AMOUNT] | ||
| Expert/Investigation Costs | $[AMOUNT] | ||
| Temporary Housing | $[AMOUNT] | ||
| TOTAL ESTIMATED DAMAGES | $[AMOUNT] |
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 Oregon law, builders impliedly warrant that new homes are fit for habitation. Ellingson v. Sloan, 527 P.2d 1100 (Or. 1975).
D. Breach of Implied Warranty of Workmanlike Construction
Under Oregon law, construction must be performed in a workmanlike manner. Abraham v. T. Henry Constr., Inc., 892 P.2d 726 (Or. App. 1995).
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 Oregon Structural Specialty Code, Oregon Residential Specialty Code, and/or local building codes.
VI. STATUTORY NOTICE REQUIREMENTS
A. Your Rights Under ORS 701.560 et seq.
Pursuant to ORS 701.570, upon receipt of this notice, you have the right to:
- Inspect the Property: Request an inspection within 30 days of receiving this notice
- Offer to Repair: Make a written offer to repair some or all defects within 14 days after inspection
- Offer Settlement: Make a written offer of monetary compensation
- Dispute Claims: Deny responsibility for the claimed defects
B. Response Timeline (ORS 701.570)
- Within 30 days: You may request an inspection of the property
- Within 14 days after inspection: You must provide a written response with your offer
- 90 days total: The claimant may not file suit until 90 days after providing notice
C. Consequences of Non-Response
Failure to respond within the statutory period may result in:
- Owner proceeding directly to litigation after 90 days
- Waiver of your right to inspect and repair
- Potential adverse inference at trial
VII. DEMAND FOR INSPECTION ACCESS
We hereby offer you the opportunity to inspect the property pursuant to ORS 701.570. To schedule an inspection:
- Contact our office in writing within 30 days
- Propose inspection dates during reasonable business hours
- Identify all persons who will attend
- 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
Spoliation Warning: Failure to preserve evidence may result in adverse inference instructions and sanctions.
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 the time periods specified in ORS 701.570. If we do not receive a timely response, our client will proceed with litigation after the 90-day statutory period without further notice.
Respectfully submitted,
[LAW FIRM NAME]
By: _________________________________
[ATTORNEY NAME]
Oregon 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]
Oregon Construction Contractors Board (if applicable)
OREGON-SPECIFIC PRACTICE NOTES
Notice and Opportunity to Repair Act (ORS 701.560-701.595):
- 90-day pre-suit notice required for residential construction
- Contractor has 30 days to request inspection after notice
- Contractor has 14 days after inspection to respond with offer
- Failure to follow procedure may bar or limit claims
- Applies to claims against contractors, subcontractors, and suppliers
Implied Warranties:
- Warranty of habitability recognized for new residential construction
- Warranty of workmanlike construction applies to all work
- Extends to subsequent purchasers within reasonable time
Contractor Licensing:
- All contractors must be licensed with Oregon CCB
- Unlicensed contractors cannot enforce contracts
- CCB bond and insurance requirements apply
- Verify license status at ccb.oregon.gov
Statute of Repose (ORS 12.135):
- 10-year repose period for improvements to real property
- Runs from substantial completion or abandonment
- Applies to all claims arising from construction
Discovery Rule:
- Statute of limitations begins when injury is or should be discovered
- Applies to latent defects
- Gaston v. Parsons, 318 Or. 247 (1994)
This template is for informational purposes only and does not constitute legal advice. Consult a licensed Oregon attorney before use.