Got a Chapter 558 Notice? A Florida Contractor’s Guide to the Defect Claim Deadlines

The letter says it is a “notice of claim under Chapter 558.” A past client, a homeowner who bought from your client, or a condo association says something you built or remodeled is defective. It is not a lawsuit yet. Florida requires owners to send this notice and give you a chance to respond before they can sue over a construction defect (s. 558.003). What you do in the next few weeks matters.

What counts as a construction defect

Chapter 558 defines a construction defect as a deficiency in design, construction, repair, alteration or remodeling that results from defective materials, a building code violation, a design that fails professional standards, or work that does not meet accepted trade standards (s. 558.002). The process covers claims for damage to property. Personal injury claims are not part of it.

The deadlines, step by step

The days below run from when the notice is served on you. The numbers in parentheses apply when the claimant is an association representing more than 20 parcels (s. 558.004).

1. Within 10 days (30): you may forward a copy of the notice to each subcontractor, supplier or design professional you believe is responsible, noting the specific defect. Forwarding it is not an admission.
2. Within 15 days (30) of receiving that copy: each of them must send you a written response with their inspection findings and their offer or position.
3. Within 30 days (50): you may inspect the property. The owner must give reasonable access during normal working hours. Destructive testing requires written notice and mutual agreement.
4. Within 45 days (75): you must send the claimant a written response.

Either side can also ask for documents such as plans, photos, expert reports, subcontracts and maintenance records. The request must cite the statute, and the other side has 30 days to produce them.

Your five response options

The written response must contain one or more of these (s. 558.004(5)):

• An offer to repair at no cost to the claimant, with a description of the work and a timetable.
• An offer to pay a settlement amount, with a timetable.
• A combination of repairs and payment.
• A statement that you dispute the claim.
• A statement that your insurer will decide on any payment within 30 days after it is notified.

If you dispute the claim or miss the deadline, the claimant can file suit without further notice. If you make a timely offer, the claimant has 45 days to accept or reject it in writing. The statute says an offer, or the lack of one, is not an admission of liability.

Where your insurance comes in

Under s. 558.004(13), sending a copy of the notice to your insurer is not a claim for insurance purposes unless the policy says otherwise. The same subsection keeps every notice condition of your liability policy in force. In practice:

1. Read the notice and claim conditions in your general liability policy. Many policies ask you to report potential claims promptly.
2. Send your agent a copy of the notice and the contract for the job, so the right policy and policy period can be identified.
3. Keep a file with the notice, the dates you received and sent each document, photos and your subcontracts.
4. Whether a policy responds to a particular defect depends on its terms. That is a question for the policy wording and, if needed, an attorney.

Two more points from the statute. Some contracts opt out of Chapter 558 in writing (s. 558.005), so check yours. And serving the notice pauses the statute of limitations for a period, but not the statute of repose.

Homeowners see the same process from the other side; our article on builder warranties and homeowners insurance explains it for them. For coverage built around your trade, see our contractor insurance page.