AB1031,8,320 (e) If the claimant rejects a settlement offer made by the contractor, the
21claimant shall, within 15 working days after receiving the offer, serve written notice
22of that rejection to the contractor. The notice shall include the reasons for the
23claimant's rejection of the contractor's offer. If the claimant believes that the
24settlement offer omits reference to any portion of the claim, or was unreasonable, the
25claimant's written notice shall include those items that the claimant believes were

1omitted and set forth the reasons why the claimant believes the settlement offer is
2unreasonable. The contractor shall deliver the claimant's response to a supplier
3upon whom a contribution claim has been made.
AB1031,8,74 (f) Upon receipt of a claimant's rejection and the reasons for the rejection, the
5contractor shall, within 5 working days after receiving the rejection, serve the
6claimant a written supplemental offer to repair or to remedy the construction defect
7or serve on the claimant written notice that no additional offer will be made.
AB1031,8,188 (g) If the claimant rejects the supplemental offer made by the contractor under
9par. (f) to remedy the construction defect or to settle the claim by monetary payment
10or a combination of each, the claimant shall serve written notice of the claimant's
11rejection on the contractor within 15 working days after receipt of the supplemental
12offer. The notice shall include the reasons for the claimant's rejection of the
13contractor's supplemental settlement offer. If the claimant believes the contractor's
14supplemental settlement offer is unreasonable, the claimant shall set forth the
15reasons why the claimant believes the supplemental settlement offer is
16unreasonable. If the contractor declines to make a supplemental offer, or if the
17claimant rejects the supplemental offer, the claimant may bring an action against
18the contractor for the claim described in the notice of claim without further notice.
AB1031,8,2319 (h) If a claimant accepts any offer made under this subsection, and the
20contractor or supplier does not proceed to repair or remedy the construction defect
21under the terms of the offer or within the agreed upon timetable, the claimant may
22bring an action against the contractor or supplier for the claim described in the notice
23of claim without further notice.
AB1031,9,224 (i) If a claimant accepts a contractor's offer to repair a construction defect
25described in a notice of claim, the claimant shall provide the contractor and its

1agents, experts, and consultants reasonable access to the dwelling to perform and
2complete the construction by the timetable stated in the settlement offer.
AB1031,9,63 (j) If a claimant receives a written statement that the contractor rejects the
4claim, or if the contractor does not respond to the claimant's notice, the claimant may
5bring an action against the contractor for the claim described in the notice of claim
6without further notice.
AB1031,9,137 (k) If a claimant commences an action against a supplier and the supplier has
8not been provided notice of the claim by the contractor and an opportunity to repair
9or remedy the construction defect described in the claim as provided under to sub.
10(7), the court or arbitrator shall dismiss without prejudice or stay the action until the
11claimant serves the supplier with a copy of the notice of claim and provides the
12supplier an opportunity to repair or remedy the construction defect in the same
13manner as provided a contractor under this section.
AB1031,9,25 14(3) Action; dismissal without prejudice. If the claimant commences an action
15but fails to comply with the requirements of sub. (2) (a) and the contractor or supplier
16establishes that the claimant was provided the notice and brochure under s. 101.148
17(2), the circuit court or arbitrator shall dismiss the action without prejudice. If the
18claimant commences an action but fails to comply with the requirements of sub. (2)
19(a) and the contractor or supplier cannot establish that the notice and brochure was
20delivered to the claimant under s. 101.148 (2), the circuit court or arbitrator shall
21stay the action and order the parties to comply with the requirements of sub. (2) (a)
22and s. 101.148 (2). Before commencing an action against a supplier seeking
23contribution for a claim that a claimant has served on a contractor, the contractor
24shall serve the supplier with a notice of contribution claim under sub. (7). If the
25contractor commences an action against a supplier but fails to serve the notice of

1contribution claim, the circuit court or arbitrator shall stay the action until the
2contractor has complied with the requirements of this subsection and sub. (7).
AB1031,10,5 3(4) Warranty terms. The claimant and contractor or supplier are bound by any
4contractor or supplier warranty terms pertaining to products or services supplied for
5the dwelling.
AB1031,10,12 6(5) Additional construction defects and notice and opportunity to repair.
7A construction defect that is discovered after an initial claim or contribution claim
8notice has been provided may not be alleged in an action until the claimant or
9contractor has served the contractor or supplier written notice of the new claim or
10contribution claim regarding the alleged new construction defect. The contractor or
11supplier shall have an opportunity to resolve the notice of the new claim or
12contribution claim in the manner provided in subs. (2) and (7).
AB1031,10,16 13(6) Action of contractor or supplier. In any action initiated by a contractor
14or supplier in which a claimant raises an affirmative defense or counterclaim
15alleging a construction defect, the claimant is not required to comply with this
16section.
AB1031,10,23 17(7) Contribution. (a) Before commencing an action seeking contribution from
18a supplier for a claim that a claimant makes against the contractor, the contractor
19shall serve the supplier with a written notice of the claimant's claim and a
20contribution claim within 5 working days after the contractor's receipt of the claim,
21except that a contractor may make a contribution claim later than 5 days after the
22contractor's receipt of the initial claim if the contractor has not done any of the
23following:
AB1031,10,2424 1. Taken any action to repair the defect.
AB1031,10,2525 2. Performed destructive testing.
AB1031,11,1
13. Authorized the claimant to take any action to repair the defect.
AB1031,11,32 4. Interfered materially with or altered the property that is the subject of the
3claim.
AB1031,11,54 5. Materially precluded a supplier's ability to offer to remedy the defect by
5making repairs.
AB1031,11,156 (b) Before commencing an action against a supplier, a contractor shall provide
7the supplier with the opportunity to respond to the contribution claim and repair the
8alleged construction defect under this section. The notice of contribution claim shall
9state that the contractor asserts a construction defect claim. The notice of
10contribution claim shall describe the contribution claim in sufficient detail to explain
11the nature of the alleged construction defect and shall offer the opportunity to correct
12the construction defect. The contractor shall include in the notice of claim a
13description of the alleged construction defect and include a comprehensive
14description of all evidence that the contractor knows or possesses, including expert
15reports, that substantiates the nature and cause of the alleged construction defect.
AB1031,11,1816 (c) Within 15 working days after a supplier has received notice that a contractor
17is seeking contribution under par. (a), the supplier shall serve the contractor with
18any of the following:
AB1031,11,2219 1. A written offer to remedy fully or partially the construction defect at no cost
20to the claimant. The offer shall include a description of any additional construction
21necessary to remedy the construction defect and a timetable for the completion of the
22construction.
AB1031,11,2323 2. A written offer to settle the claim by monetary payment.
AB1031,11,2424 3. A written offer including a combination of repairs and monetary payment.
AB1031,12,4
14. A written statement that the supplier rejects the claim. The supplier shall
2state in the written response to the claim the reason for rejecting the claim and
3include a comprehensive description of all evidence the supplier knows or possesses,
4including expert reports, that substantiates the reason for rejecting the claim.
AB1031,12,65 5. A proposal for the inspection of the dwelling, following the procedures under
6par. (e).
AB1031,12,97 (d) The contractor shall forward the supplier's response to the claimant. The
8supplier and contractor shall use their best efforts to coordinate their responses to
9claims and contribution claims.
AB1031,13,610 (e) If a supplier proposes to inspect the dwelling that is the subject of the
11contribution claim, the contractor and claimant shall, within 15 working days after
12receiving the supplier's proposal, provide the supplier and its agents, experts, and
13consultants reasonable access to the dwelling to inspect the dwelling, document any
14alleged construction defects, and perform any testing required to evaluate fully the
15nature, extent, and cause of the claimed construction defects and the nature and
16extent of any repairs or replacements that may be necessary to remedy them. If
17destructive testing is required, the supplier shall give the contractor and claimant
18and all persons on whom a notice of claim or contribution claim has been served
19advance notice of the testing at least 5 working days before commencement of the
20testing and shall, after completion of the testing, return the dwelling to its
21pre-testing condition within a reasonable time after completion of the testing, at the
22supplier's expense. If any inspection or testing reveals a condition that requires
23additional testing to allow the supplier to evaluate fully the nature, cause, and extent
24of the construction defect, the supplier shall provide notice to the contractor and
25claimant and all persons on whom a notice of claim or contribution claim has been

1served of the need for the additional testing and the contractor and claimant shall
2provide reasonable access to the dwelling. If a claim is asserted on behalf of the
3contractor of multiple dwellings, then the supplier shall be entitled to inspect each
4of the dwellings. The contractor and claimant shall provide a specific day for the
5inspection upon reasonable notice for an inspection or require the supplier to request
6in writing a date for the inspection, at least 3 working days before the inspection.
AB1031,13,97 (f) Within 10 working days following completion of the inspection and testing
8under par. (e), the supplier shall serve on the contractor a notice that includes any
9of the offers or statements under par. (c) 1. to 4.
AB1031,13,1710 (g) If the contractor rejects a settlement offer made by the supplier, the
11contractor shall, within 15 working days after receiving the offer, send written notice
12of that rejection to the supplier. The notice shall include the reasons for the
13contractor's rejection of the supplier's offer. If the contractor believes that the
14settlement offer omits reference to any portion of the claim, or was unreasonable, the
15contractor's written notice shall include those items that the contractor believes were
16omitted and set forth the reasons why the contractor believes the settlement offer is
17unreasonable.
AB1031,13,2118 (h) Upon receipt of a contractor's rejection and the reasons for the rejection, the
19supplier shall, within 5 working days of receiving the rejection, make a supplemental
20offer of repair or monetary payment to the contractor or serve on the contractor
21written notice that no additional offer will be made.
AB1031,14,722 (i) If the contractor rejects the supplemental offer made by the supplier to
23remedy the construction defect or to settle the claim by monetary payment or a
24combination of each, the contractor shall, within 15 working days after receiving the
25offer, serve written notice of the contractor's rejection on the supplier. The notice

1shall include the reasons for the contractor's rejection of the supplier's supplemental
2settlement offer. If the contractor believes the supplier's supplemental settlement
3offer is unreasonable, the contractor shall set forth the reasons why the contractor
4believes the supplemental settlement offer is unreasonable. If supplier declines to
5make a supplemental offer, or if the contractor rejects the supplemental offer, the
6contractor may bring an action against the supplier for the claim described in the
7notice of claim without further notice.
AB1031,14,158 (j) If a contractor accepts any offer made under this subsection, and the supplier
9does not proceed to make the monetary payment or remedy the construction defect
10within the agreed upon timetable, the contractor may bring an action against the
11supplier for the claim described in the notice of claim without further notice. The
12contractor may also file the supplier's offer and contractor's acceptance in the circuit
13court action, and the offer and acceptance create a rebuttable presumption that a
14binding and valid settlement agreement has been created and should be enforced by
15the court.
AB1031,14,2016 (k) If a contractor accepts a supplier's offer to repair a construction defect
17described in a notice of claim, the contractor, when appropriate, and the claimant
18shall provide the supplier and its agents, experts, and consultants reasonable access
19to the dwelling to perform and complete the construction by the timetable stated in
20the settlement offer.
AB1031,14,2421 (L) If a contractor receives a written statement that the supplier rejects the
22claim, or if the supplier does not respond to the contractor's notice, the contractor
23may bring an action against the supplier for the claim described in the notice of claim
24without further notice.
AB1031,15,4
1(m) A contractor who is seeking contribution from a supplier and who elects to
2inspect a dwelling under sub. (2) (b) shall serve the supplier written notice of the
3inspection date and dwelling address, and whether destructive testing is
4contemplated, at least 5 working days before the inspection.
AB1031,15,7 5(8) Failure to respond to notice. If a person fails to timely respond to any
6notice served in a manner required under this section, then any offer made in that
7notice is rejected.
AB1031,15,13 8(9) Limitation period. If, during the pendency of the notice, inspection, offer,
9acceptance, or repair process, an applicable limitation period would otherwise
10expire, the limitation period is tolled pending completion of the notice of claim
11process described in this section. This subsection shall not be construed to revive a
12limitation period that has expired before the date on which a claimant's written
13notice of claim is served or extend any applicable statute of repose.
AB1031,15,17 14(10) Alteration of procedure. After service of the initial notice of claim and
15initial contribution claim, a claimant, a contractor, and a supplier may, by written
16mutual agreement, alter the procedure for the notice of claim process described in
17this section.
AB1031,15,20 18(11) Application to others. This section does not apply to a contractor's or
19supplier's right to seek contribution, indemnity, or recovery against any party other
20than a supplier for a claim made against a contractor or supplier.
AB1031,15,23 21(12) Homeowner repairs. Without giving notice under this section, a
22homeowner may make immediate repairs to a dwelling to protect the health or safety
23of its occupants.
AB1031,16,3
1(13) Brochure. The department of commerce shall prepare a brochure
2explaining the process under this section and shall provide that brochure to
3contractors.
AB1031, s. 3 4Section 3. Initial applicability.
AB1031,16,65 (1) This act first applies to actions commenced on the effective date of this
6subsection.
AB1031, s. 4 7Section 4. Effective date.
AB1031,16,98 (1) This act takes effect on the first day of the 6th month beginning after
9publication.
AB1031,16,1010 (End)
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