As a general contractor, you work hard to deliver quality results, but disputes over construction defects can arise even in the best projects. Idaho’s Notice and Opportunity to Repair Act (NORA) provides a framework to resolve these issues without jumping straight into litigation. Understanding how this law works and it protects you can help you protect your business while maintaining good client relationships. Here’s our general outline for general contractors on the issue. Make sure to consult the statute or one of our attorneys directly to determine how NORA might apply to your situation.
The Steps You Need to Follow Under Idaho’s Right to Repair Act
Idaho’s NORA gives general contractors an opportunity to address claims of construction defects before they escalate. If a homeowner files a complaint, here’s how the process works:
Receive a Written Notice of Claim
Before initiating legal action, the homeowner must serve you with a written notice of claim that identifies the alleged defect in reasonable detail. This notice must give you enough information to understand the nature of the defect and begin investigating the issue.
What Constitutes Service?
“Service” means the homeowner must deliver the notice to you in a way that ensures you actually receive it. Acceptable methods of service typically include:
- Personal delivery to you or your designated representative.
- Mailing the notice via certified mail, with a return receipt requested, to your business address.
- Other methods explicitly authorized by your construction contract, if applicable.
Proper service is crucial because the 21-day clock for your response doesn’t start until the notice is served correctly. If the notice isn’t served in accordance with these rules, it may delay the process or even affect the homeowner’s ability to file a lawsuit.
Respond Within 21 Days
After receiving the notice, you have 21 days to respond in one of the following ways:
- Request an Inspection: Propose a time to inspect the property. After the inspection, you can offer to make repairs, settle the issue monetarily, or dispute the claim.
- Offer a Monetary Settlement: Skip the inspection and make a direct financial offer to resolve the matter.
- Dispute the Claim: If you believe the claim has no merit, you can deny it outright.
Follow Up After an Inspection
If the homeowner agrees to an inspection, you have 14 days after the inspection to provide a formal response. This can include a repair proposal, a monetary settlement offer, or a statement disputing the defect.
Resolve or Proceed to Court
If the homeowner rejects your offer or you fail to act within the required timeframe, they may file a lawsuit. However, the homeowner must follow these steps before legal action, which gives you the chance to address the problem and avoid court altogether.
This process is designed to encourage resolution and limit the risk of costly litigation. Use it to your advantage by being proactive and collaborative in addressing claims.
What You Should Know About Attorney Fees
Attorney fees are a critical component of construction defect disputes under NORA. Here’s what the law allows:
Homeowner Recovery of Attorney Fees
If the homeowner ultimately proves a defect and prevails, they can recover reasonable attorney fees and other costs directly caused by the issue.
Limitations on Recovery
If the homeowner rejects a reasonable repair or settlement offer, their recovery may be limited to:
- The cost of the proposed repairs to fix the defect, or
- The value of your monetary settlement offer, plus
- Attorney fees and costs incurred only before their rejection.
This means a fair and timely offer from you can not only resolve the issue faster but also cap the homeowner’s potential recovery if they choose to escalate the matter unreasonably.
Attorney Fees for Contractors
Unfortunately, NORA does not allow contractors to recover attorney fees unless your contract or another applicable law explicitly provides for it. Including clear language in your contracts about attorney fees is a smart step to protect yourself in disputes. Not sure if your contract allows for recovery of attorney fees in your favor? Schedule a consultation with one of our attorneys today.
How to Protect Your General Contractor Business Under Idaho’s Right to Repair Act
NORA provides general contractors with a critical opportunity to resolve disputes without litigation, saving time and money. To make the most of this process:
- Respond promptly and professionally to claims.
- Use the inspection period to fully assess the problem and demonstrate good faith.
- Consider offering a reasonable settlement if the defect is valid—it may save you from greater costs later.
- Work with an attorney to ensure your contracts are well-drafted, especially regarding attorney fees and defect resolution procedures.
By understanding and using Idaho’s Right to Repair Act effectively, general contractors can safeguard your reputation, avoid unnecessary legal battles, and maintain strong relationships with your clients.
If you have questions about how Idaho’s Right to Repair Act applies to your projects, the attorneys at Skepsis Legal will help you navigate the process.
