Bill Text: IA SF532 | 2019-2020 | 88th General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to notice and opportunity to repair construction defects in new construction, and including effective date and applicability provisions. (Formerly SSB 1146.) Effective 4-15-19.
Spectrum: Committee Bill
Status: (Passed) 2019-04-15 - Signed by Governor. S.J. 949. [SF532 Detail]
Download: Iowa-2019-SF532-Amended.html
Bill Title: A bill for an act relating to notice and opportunity to repair construction defects in new construction, and including effective date and applicability provisions. (Formerly SSB 1146.) Effective 4-15-19.
Spectrum: Committee Bill
Status: (Passed) 2019-04-15 - Signed by Governor. S.J. 949. [SF532 Detail]
Download: Iowa-2019-SF532-Amended.html
Senate
File
532
-
Reprinted
SENATE
FILE
532
BY
COMMITTEE
ON
JUDICIARY
(SUCCESSOR
TO
SSB
1146)
(As
Amended
and
Passed
by
the
Senate
March
20,
2019
)
A
BILL
FOR
An
Act
relating
to
notice
and
opportunity
to
repair
1
construction
defects
in
new
construction,
and
including
2
effective
date
and
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
SF
532
(3)
88
asf/rn/mb
S.F.
532
Section
1.
NEW
SECTION
.
686.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Action”
means
any
civil
action
or
arbitration
proceeding
4
for
damages
or
indemnity
asserting
a
claim
for
injury
to
5
property,
real
or
personal,
arising
out
of
the
unsafe
or
6
defective
condition
of
an
improvement
to
real
property
based
on
7
tort,
breach
of
contract,
or
express
or
implied
warranty.
8
2.
“Association”
means
an
entity
or
homeowners
association
9
created
for
the
purposes
of
managing
the
operations
of
a
10
community
as
set
forth
in
a
declaration
of
covenants
or
11
declaration
of
submission
of
property
to
horizontal
property
12
regime
filed
of
record
in
the
county
that
the
property
is
13
located.
14
3.
“Claimant”
means
a
private
owner,
a
subsequent
private
15
owner,
or
an
association,
who
asserts
a
claim
in
a
class
action
16
for
damages
against
a
general
contractor
or
subcontractor
17
concerning
a
construction
defect.
“Claimant”
shall
not
include
18
a
public
corporation
as
defined
in
section
573.1.
19
4.
“Construction
defect”
means
an
alleged
or
actual
unsafe
20
or
defective
condition
of
an
improvement
to
real
property.
21
5.
“General
contractor”
means
a
person
who
does
work
or
22
furnishes
materials
by
contract,
express
or
implied,
with
an
23
owner.
24
6.
“Owner”
means
the
legal
or
equitable
titleholder
of
25
record
to
real
property
or
the
holder
of
a
leasehold
interest.
26
7.
“Serve”
,
“served”
,
or
“service”
means
delivery
by
27
certified
mail
with
a
United
States
postal
service
record
28
of
evidence
of
delivery
or
attempted
delivery
to
the
last
29
known
address
of
the
addressee,
by
hand
delivery
with
written
30
evidence
of
delivery,
or
by
delivery
by
any
courier
with
31
written
evidence
of
delivery.
32
8.
“Subcontractor”
means
a
person
furnishing
material
33
or
performing
labor
upon
any
building,
erection,
or
other
34
improvement
to
land,
except
those
having
contracts
directly
35
-1-
SF
532
(3)
88
asf/rn/mb
1/
7
S.F.
532
with
the
owner.
1
Sec.
2.
NEW
SECTION
.
686.2
Action
——
compliance.
2
1.
A
claimant
shall
not
file
an
action
without
first
3
complying
with
the
requirements
of
this
chapter.
If
a
claimant
4
files
an
action
alleging
a
construction
defect
without
first
5
complying
with
the
requirements
of
this
chapter,
on
timely
6
motion
by
a
party
to
the
action,
the
court
shall
stay
the
7
action,
without
prejudice,
and
the
action
shall
not
proceed
8
until
the
claimant
has
complied
with
the
requirements.
9
2.
An
action
filed
prior
to
the
expiration
of
the
10
statute
of
limitations
set
forth
in
section
614.1,
which
is
11
stayed
pursuant
to
this
section
and
for
which
the
statute
of
12
limitations
runs
during
the
time
the
claimant
is
complying
with
13
this
statute,
shall
not
be
deemed
barred
by
the
applicable
14
statute
of
limitation
for
the
pending
action
if
the
claimant
15
complies
with
the
requirements
of
this
chapter
and
the
action
16
is
otherwise
allowed
to
proceed.
17
Sec.
3.
NEW
SECTION
.
686.3
Notice
and
opportunity
to
18
repair.
19
1.
Prior
to
commencing
an
action
alleging
a
construction
20
defect,
the
claimant
shall,
at
least
one
hundred
twenty
days
21
before
filing
an
action,
serve
written
notice
of
claim
on
the
22
general
contractor
and
subcontractor.
The
notice
of
claim
23
shall
refer
to
this
chapter
and
must
describe
the
claim
in
24
reasonable
detail
sufficient
to
determine
the
general
nature
of
25
each
alleged
construction
defect,
a
description
of
the
damage
26
or
loss
resulting
from
the
defect,
if
known,
and
any
work
or
27
inspections
completed
to
determine
the
cause
of
the
damage
28
or
loss
or
correct
the
construction
defect.
This
subsection
29
does
not
preclude
a
claimant
from
filing
an
action
sooner
than
30
one
hundred
twenty
days,
after
service
of
written
notice
as
31
expressly
provided
in
subsection
6,
7,
or
8.
32
2.
a.
Within
sixty
days
after
service
of
the
notice
33
of
claim,
the
person
served
with
the
notice
of
claim
under
34
subsection
1
is
entitled
to
perform
a
reasonable
inspection
35
-2-
SF
532
(3)
88
asf/rn/mb
2/
7
S.F.
532
of
the
property
or
of
each
unit
subject
to
the
claim
to
1
assess
each
alleged
construction
defect.
The
claimant
shall
2
provide
the
person
served
with
notice
under
subsection
1
and
3
the
person’s
general
contractors,
subcontractors,
or
agents
4
reasonable
access
to
the
property
during
normal
working
hours
5
to
inspect
the
property
to
determine
the
nature
and
cause
of
6
each
alleged
construction
defect
and
the
nature
and
extent
7
of
any
repairs
or
replacements
necessary
to
remedy
each
8
construction
defect.
The
person
served
with
notice
under
9
subsection
1
shall
reasonably
coordinate
the
timing
and
manner
10
of
any
and
all
inspections
with
the
claimant
to
minimize
the
11
number
of
inspections.
The
inspection
may
include
reasonable
12
destructive
testing
by
mutual
agreement
under
the
following
13
terms
and
conditions:
14
(1)
If
the
person
served
with
notice
under
subsection
1
15
determines
that
destructive
testing
is
necessary
to
determine
16
the
nature
and
cause
of
the
alleged
construction
defects,
the
17
person
shall
notify
the
claimant
in
writing.
18
(2)
The
notice
shall
describe
the
destructive
testing
19
to
be
performed,
the
person
selected
to
do
the
testing,
the
20
estimated
anticipated
damage
and
repairs
to
or
restoration
of
21
the
property
resulting
from
the
testing,
the
estimated
amount
22
of
time
necessary
for
the
testing
and
to
complete
the
repairs
23
or
restoration,
and
the
financial
responsibility
offered
for
24
covering
the
costs
of
repairs
or
restoration.
25
(3)
The
testing
shall
be
done
at
a
mutually
agreeable
time.
26
(4)
The
claimant
or
a
representative
of
the
claimant
may
be
27
present
to
observe
the
destructive
testing.
28
b.
If
the
claimant
refuses
to
agree
and
permit
reasonable
29
destructive
testing,
the
claimant
shall
have
no
claim
for
30
damages
which
could
have
been
avoided
or
mitigated
had
31
destructive
testing
been
allowed
when
requested
and
had
a
32
feasible
remedy
been
promptly
implemented.
33
3.
The
general
contractor
or
subcontractor
may
serve
a
34
copy
of
the
notice
of
claim
to
each
subcontractor
or
general
35
-3-
SF
532
(3)
88
asf/rn/mb
3/
7
S.F.
532
contractor
whom
the
general
contractor
or
subcontractor
1
reasonably
believes
is
responsible
for
a
construction
defect
2
specified
in
the
notice
of
claim
and
shall
note
the
specific
3
construction
defect
for
which
the
subcontractor
or
general
4
contractor
is
alleged
to
be
responsible.
The
notice
described
5
in
this
subsection
shall
not
be
construed
as
an
admission
of
6
any
kind.
A
general
contractor
or
subcontractor
may
inspect
7
the
property
in
the
manner
described
in
subsection
2.
8
4.
Within
thirty
days
after
service
of
the
notice
of
9
claim
pursuant
to
subsection
3,
the
general
contractor
or
10
subcontractor
must
serve
a
written
response
to
the
general
11
contractor
or
subcontractor
who
served
the
notice
of
claim.
12
The
written
response
shall
include
a
report,
if
any,
of
13
the
scope
of
any
inspection
of
the
property,
the
findings
14
and
results
of
the
inspection,
a
statement
of
whether
the
15
subcontractor
or
general
contractor
is
willing
to
make
repairs
16
to
the
property
or
whether
the
claim
is
disputed,
a
description
17
of
any
repairs
the
subcontractor
or
general
contractor
is
18
willing
to
make
to
remedy
the
alleged
construction
defect,
and
19
a
timetable
for
the
completion
of
the
repairs.
This
response
20
may
also
be
served
on
the
initial
claimant
by
the
general
21
contractor
or
subcontractor.
22
5.
Within
seventy-five
days
after
service
of
the
notice
of
23
claim,
the
person
who
was
served
the
notice
under
subsection
1
24
shall
serve
a
written
response
to
the
claimant.
The
response
25
shall
be
served
to
the
attention
of
the
person
who
signed
the
26
notice
of
claim,
unless
otherwise
designated
in
the
notice
27
of
claim.
The
written
response
must
provide
for
one
of
the
28
following:
29
a.
A
written
offer
to
remedy
the
alleged
construction
defect
30
at
no
cost
to
the
claimant,
a
description
of
the
proposed
31
repairs
necessary
to
remedy
the
construction
defect,
and
a
32
timetable
for
the
completion
of
such
repairs.
33
b.
A
written
offer
to
compromise
and
settle
the
claim
by
34
monetary
payment,
that
will
not
obligate
the
person’s
insurer,
35
-4-
SF
532
(3)
88
asf/rn/mb
4/
7
S.F.
532
and
a
timetable
for
making
payment.
1
c.
A
written
offer
to
compromise
and
settle
the
claim
by
2
a
combination
of
repairs
and
monetary
payment
that
will
not
3
obligate
the
person’s
insurer,
and
which
includes
a
detailed
4
description
of
the
proposed
repairs
and
a
timetable
for
the
5
completion
of
such
repairs
and
making
payment.
6
d.
A
written
statement
that
the
person
disputes
the
claim
7
and
will
not
remedy
the
construction
defect
or
compromise
and
8
settle
the
claim.
9
e.
A
written
offer
of
a
monetary
payment,
including
10
insurance
proceeds,
to
be
determined
by
the
person
and
the
11
person’s
insurer,
which
the
claimant
may
accept
or
reject.
12
6.
If
the
person
served
with
a
notice
of
claim
pursuant
13
to
subsection
1
disputes
the
claim
and
will
neither
remedy
14
the
construction
defect
nor
compromise
and
settle
the
claim,
15
or
does
not
respond
to
the
claimant’s
notice
of
claim
within
16
the
time
provided
in
subsection
5,
the
claimant
may,
without
17
further
notice,
proceed
with
an
action
against
that
person
for
18
the
claim
described
in
the
notice
of
claim.
Nothing
in
this
19
chapter
shall
be
construed
to
preclude
a
partial
settlement
or
20
compromise
of
the
claim
as
agreed
to
by
the
parties
and,
in
21
that
event,
the
claimant
may,
without
further
notice,
proceed
22
with
an
action
on
the
unresolved
portions
of
the
claim.
23
7.
A
claimant
who
receives
a
timely
settlement
offer
shall
24
accept
or
reject
the
offer
by
serving
written
notice
of
such
25
acceptance
or
rejection
on
the
person
making
the
offer
within
26
forty-five
days
after
receiving
the
settlement
offer.
If
27
a
claimant
initiates
an
action
without
first
accepting
or
28
rejecting
the
offer,
the
court
shall
stay
the
action
upon
29
timely
motion
until
the
claimant
complies
with
this
subsection.
30
8.
If
the
claimant
timely
and
properly
accepts
the
offer
31
to
repair
an
alleged
construction
defect,
the
claimant
shall
32
provide
the
offeror
and
the
offeror’s
agents
reasonable
access
33
to
the
claimant’s
property
during
normal
working
hours
to
34
perform
the
repair
by
the
agreed-upon
timetable
as
stated
35
-5-
SF
532
(3)
88
asf/rn/mb
5/
7
S.F.
532
in
the
offer.
If
the
offeror
does
not
make
the
payment
or
1
repair
the
construction
defect
within
the
agreed
time
and
in
2
the
agreed
manner,
except
for
reasonable
delays
beyond
the
3
control
of
the
offeror,
including
but
not
limited
to
weather
4
conditions,
delivery
of
materials,
claimant’s
actions,
or
5
issuance
of
any
required
permits,
the
claimant
may,
without
6
further
notice,
proceed
with
an
action
against
the
offeror
7
based
upon
the
claim
in
the
notice
of
claim.
If
the
offeror
8
makes
payment
or
repairs
to
the
defect
within
the
agreed
9
time
and
in
the
agreed
manner,
the
claimant
is
barred
from
10
proceeding
with
an
action
for
the
claim
described
in
the
notice
11
of
claim
or
as
otherwise
provided
in
the
accepted
settlement
12
offer.
13
9.
This
section
does
not
prohibit
or
limit
a
claimant
from
14
making
any
necessary
emergency
repairs
to
the
property
as
are
15
required
to
protect
the
health,
safety,
and
welfare
of
any
16
person.
17
10.
Any
offer
or
failure
to
offer,
pursuant
to
subsection
5,
18
to
remedy
a
construction
defect
or
to
compromise
and
settle
the
19
claim
by
monetary
payment
does
not
constitute
an
admission
of
20
liability
with
respect
to
the
defect
and
is
not
admissible
in
21
an
action
that
is
subject
to
this
chapter.
22
11.
This
section
does
not
relieve
the
person
who
is
served
23
a
notice
of
claim
under
subsection
1
from
complying
with
all
24
contractual
provisions
of
any
liability
insurance
policy
as
25
a
condition
precedent
to
coverage
for
any
claim
under
this
26
section.
27
Sec.
4.
NEW
SECTION
.
686.4
Multiple
construction
defects.
28
The
procedures
in
this
chapter
apply
to
each
construction
29
defect.
However,
a
claimant
may
include
multiple
defects
in
30
one
notice
of
claim.
A
claimant
may
amend
the
initial
list
of
31
construction
defects
to
identify
additional
or
new
construction
32
defects
as
the
defects
become
known
to
the
claimant.
The
court
33
shall
allow
the
action
to
proceed
to
trial
only
as
to
alleged
34
construction
defects
that
were
noticed
and
for
which
the
35
-6-
SF
532
(3)
88
asf/rn/mb
6/
7
S.F.
532
claimant
has
complied
with
this
chapter
and
as
to
construction
1
defects
reasonably
related
to,
or
caused
by,
the
construction
2
defects
previously
noticed.
Nothing
in
this
section
shall
3
preclude
subsequent
or
further
actions.
4
Sec.
5.
NEW
SECTION
.
686.5
Limitations
of
chapter.
5
This
chapter
does
not
do
any
of
the
following:
6
1.
Bar
or
limit
any
rights,
including
the
right
of
specific
7
performance
to
the
extent
such
right
would
be
available
in
the
8
absence
of
this
chapter,
any
causes
of
action,
or
any
theories
9
on
which
liability
may
be
based,
except
as
specifically
10
provided
in
this
chapter.
11
2.
Bar
or
limit
any
defense,
or
create
any
new
defense,
12
except
as
specifically
provided
in
this
chapter.
13
3.
Create
any
new
rights,
causes
of
action,
or
theories
on
14
which
liability
may
be
based.
15
Sec.
6.
NEW
SECTION
.
686.6
Effect
of
arbitration
clauses.
16
To
the
extent
that
an
arbitration
clause
in
a
contract
for
17
the
sale,
design,
or
construction
of
real
property
conflicts
18
with
this
chapter,
this
chapter
shall
control.
19
Sec.
7.
NEW
SECTION
.
686.7
Application.
20
1.
This
chapter
applies
to
construction
defects
in
new
21
construction.
This
chapter
does
not
apply
to
construction
22
defects
in
renovations
or
remodels.
23
2.
This
chapter
only
applies
to
actions
brought
pursuant
to
24
a
class
action.
25
Sec.
8.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
26
importance,
takes
effect
upon
enactment.
27
Sec.
9.
APPLICABILITY.
This
Act
applies
to
actions
for
28
which
litigation
has
not
commenced
prior
to
the
effective
date
29
of
this
Act.
30
-7-
SF
532
(3)
88
asf/rn/mb
7/
7
