If you have been doing construction in Florida for a while, you have probably received a “558 Notice.” If you haven’t, consider yourself lucky.
Most construction defect disputes in Florida start with a 558 Notice. This is a statutory mandated notice that tells the contractor that the person who hired them thinks they performed defective construction. The notice requirement is intended to give the contractor notice of the defect and an opportunity to fix it or remedy the situation.
Although 558 Notices can be scary on the receiving end, they are actually required by the statute in order to help the contractor. This requirement keeps the owner from going straight to filing a lawsuit without the contractor ever having the opportunity to address the problem.
The way that you should respond to a notice depends on the situation. However, it is almost always beneficial to take advantage of the 558 Notice period to visit the property, take pictures, and document the claimed defect.
This way, if the dispute turns into a lawsuit, you already have pictures and the evidence you need to make your case. Also, if the owner goes on to rip out your work and replace it, you will have evidence of what everything looked like when you finished the job.
As you might expect, the best way to respond to Chapter 558 Notice letter is usually with a letter. The initial response should state that the contractor reserves all objections to the owner’s claim, but wishes to conduct an inspection before responding to the claim. This initial response should also request documents that the contractor is entitled to under Chapter 558, such as the owner’s inspection reports.
The owner must make the property available for inspection within 30 days of serving their Chapter 558 Notice. As discussed above, you should typically take advantage of this inspection period.
With or without the inspection, contractors must respond to the claim within the statutory time period (usually 45 days). The formal response letter must say that the contractor either:
- Wishes to fix the claimed defect;
- Wishes to pay the owner in lieu of fixing the defect;
- Wishes to make repairs and pay the owner;
- Disputes the claim and will not settle or compromise; or
- Will leave the settlement determination to its insurer.
If the owner has included requests for information under Chapter 558, such as requests for the contractor’s insurance information, it may also be necessary to respond to those requests.
Depending upon the facts, the contractor may wish to include other relevant information in the letter. However, it is important to remember that the purpose of Chapter 558 is not to prove your case. It is a mechanism to encourage you to settle before the owner files a lawsuit.
Ultimately, if you are unsure about your rights under Chapter 558, you should provide the letter to your attorney as soon as you receive it so you can get professional advice on how to respond.
DISCLAIMER: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
About the Author: Ready Legal is a business law firm located in Orlando, Florida. Ready Legal primarily assists clients with civil litigation matters, such as construction lien and bond claims, business litigation, and real estate litigation. Ready Legal also helps Orange County businesses with evictions, contract negotiations, and a variety of commercial matters. If you are in need of a construction or business attorney in Orlando, Florida, contact Ready Legal at (407) 258-2002.
READY LEGAL 