Construction Defect Demand Letter - Texas

CONSTRUCTION DEFECT DEMAND LETTER

STATE OF TEXAS

STATUTORY NOTICE PURSUANT TO TEXAS RESIDENTIAL CONSTRUCTION LIABILITY ACT

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

[DATE]

[CONTRACTOR/BUILDER NAME]
[ADDRESS]
[CITY, STATE ZIP]
Texas Contractor Registration (if applicable): [NUMBER]

Re: STATUTORY NOTICE UNDER TEXAS RESIDENTIAL CONSTRUCTION LIABILITY ACT
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 Texas Residential Construction Liability Act (RCLA), Texas Property Code Chapter 27, 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 NOTICE UNDER TEXAS PROPERTY CODE § 27.004, IF THE CLAIM IS COVERED. PLEASE RESPOND TO THE CLAIM AND CONSIDER A WRITTEN OFFER WITHIN SIXTY (60) DAYS AFTER RECEIPT.

I. TEXAS-SPECIFIC LEGAL FRAMEWORK

A. Texas Residential Construction Liability Act (RCLA)

This notice is provided pursuant to Texas Property Code Section 27.001 et seq., the Texas Residential Construction Liability Act, which establishes mandatory pre-litigation procedures for residential construction defect claims.

Under the RCLA:

• The claimant must provide written notice of claimed defects at least 60 days before filing suit
• The contractor has the right to inspect the property within 35 days of receiving notice
• The contractor may make a written offer of settlement within 60 days after receiving notice
• Failure to follow the applicable notice and inspection procedures may result in abatement; evaluate the statute-of-limitations exception and the effect of any offer separately

B. Statute of Limitations

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

C. Statute of Repose

Texas Civil Practice and Remedies Code § 16.009 generally measures covered construction or repair claims from substantial completion, but the period depends on the claimant and project. Subsection (a) generally provides ten years; subsection (a-1) provides eight years for a governmental entity; and subsection (a-2) provides six years for certain residence claims against a contractor who gave a qualifying written warranty. Subsection (e) excludes the listed long-term written warranty or contract, actual possessor or controller, and willful-misconduct or fraudulent-concealment actions. Subsection (f) does not extend a shorter period under other law. Determine the proper defendant, project, warranty, accrual, and applicable exception before stating a deadline.

D. Implied Warranties in Texas

Texas recognizes the following implied warranties in residential construction:

1. Implied Warranty of Good and Workmanlike Manner: Builders impliedly warrant that construction will be performed in a good and workmanlike manner. Melody Home Mfg. Co. v. Barnes (Tex. 1987), 741 S.W.2d 349.

2. Implied Warranty of Habitability: New home builders warrant homes are fit for habitation. Humber v. Morton (Tex. 1968), 426 S.W.2d 554.

E. Contractor Licensing Requirements

Texas does not have a statewide general contractor license requirement, but many municipalities require contractor registration. Specialty trades (plumbing, electrical, HVAC) require state licensing.

II. PROPERTY AND PROJECT INFORMATION

A. Property Description

B. Project Information

C. Parties Involved

General Contractor:

• Name: [NAME]
• Registration Number (if applicable): [NUMBER]
• Address: [ADDRESS]
• Contact: [PHONE/EMAIL]

Subcontractors: (List all subcontractors whose work is believed defective)

III. DESCRIPTION OF DEFECTS

Pursuant to Tex. Property Code Section 27.004, 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 municipal residential code (IRC edition/year and local amendments: [____________]) — Tex. Loc. Gov’t Code § 214.212
☐ Applicable municipal commercial code (IBC edition/year and local amendments: [____________]) — Tex. Loc. Gov’t Code § 214.216
☐ Other applicable local code or ordinance: [____________]
☐Manufacturer's Installation Instructions
☐Industry Standards (IRC, IBC, ASTM)
☐Contract Specifications
☐Implied Warranty of Good and Workmanlike Manner
☐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 Texas law, builders impliedly warrant that new homes are fit for habitation. Humber v. Morton, 426 S.W.2d 554 (Tex. 1968).

D. Breach of Implied Warranty of Good and Workmanlike Manner

Under Texas law, construction must be performed in a good and workmanlike manner. Melody Home Mfg. Co. v. Barnes, 741 S.W.2d 349 (Tex. 1987).

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 Texas Deceptive Trade Practices Act

If applicable, violations of the DTPA (Tex. Bus. & Com. Code Chapter 17) may provide additional remedies.

G. Violation of Building Codes

The construction violates the applicable building codes and/or local municipal codes.

VI. STATUTORY NOTICE REQUIREMENTS

A. Your Rights Under the Texas RCLA

Pursuant to Tex. Property Code Section 27.004, upon receipt of this notice, you have the right to:

1. Inspect the Property: Request an inspection within 35 days of receiving this notice
2. Offer to Repair: You may make a written offer to repair within 60 days after receiving notice
3. Offer Settlement: Make a written offer of monetary compensation
4. Dispute Claims: Deny responsibility for the claimed defects

B. Response Timeline (Tex. Property Code Section 27.004)

1. Within 35 days: You may request an inspection of the property
2. Within 60 days after receiving notice: You may make a written settlement offer under § 27.004(b)
3. Within 25 days after receiving an offer: An unaccepted offer is considered rejected; if the Owner considers it unreasonable, the Owner must give written, reasonably detailed reasons by that date
4. Before filing: Apply the 60-day presuit notice requirement unless § 27.004(c) excuses it; separately calendar all limitation deadlines

C. Consequences of Non-Response

If no reasonable offer is made, § 27.004(f) removes the special damages limits in subsection (e). A missed offer does not itself create an adverse inference or forfeit every defense. The Owner may pursue litigation after satisfying the applicable presuit procedure and independent deadlines.

VII. DEMAND FOR INSPECTION ACCESS

We hereby offer you the opportunity to inspect the property pursuant to Tex. Property Code Section 27.004. To schedule an inspection:

1. Contact our office in writing within 35 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

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 Tex. Property Code Section 27.004. If we do not receive a timely response, our client will proceed with litigation after the 60-day statutory period without further notice.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
State Bar of Texas 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]
(Note: The Texas Residential Construction Commission (TRCC) was abolished in 2009 and has no successor agency.)

TEXAS-SPECIFIC PRACTICE NOTES

Texas RCLA (Tex. Property Code Chapter 27):

• 60-day pre-suit notice required for residential construction
• Contractor has 35 days to inspect after notice
• Contractor may make a written offer within 60 days after receiving notice
• Failure to follow procedure may limit damages recovery
• Apply Chapter 27 only to covered residential construction-defect claims under § 27.002

Statute of Repose (Tex. Civ. Prac. & Rem. Code Section 16.009):

• Generally ten years after substantial completion for covered claims; eight years for governmental entities and six years for specified residence claims with a qualifying written warranty
• Check the defendant, claim type, written-warranty rule, exceptions in subsection (e), and shorter limitations periods

Implied Warranties:

• Warranty of good and workmanlike manner recognized
• Warranty of habitability applies to new homes
• Melody Home and Humber are leading cases
• May extend to subsequent purchasers

Contractor Licensing:

• No statewide general contractor license required
• Check local municipality for registration requirements
• Plumbing, electrical, HVAC require state licenses
• Texas Department of Licensing and Regulation oversees electrical and air-conditioning trades (Tex. Occ. Code chs. 1305 and 1302); the Texas State Board of Plumbing Examiners oversees plumbing (Tex. Occ. Code ch. 1301)

DTPA Claims:

• Deceptive Trade Practices Act may provide additional remedies
• 2-year statute of limitations
• Treble damages possible for knowing violations
• RCLA notice requirements must still be followed

Discovery Rule:

• Statute of limitations may be tolled until defect discovered or should have been discovered
• Computer Assocs. Int'l v. Altai, Inc., 918 S.W.2d 453 (Tex. 1996)

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