February 20, 2006 - Introduced by Representatives Wieckert, Loeffelholz,
Shilling, Owens, Musser, Kestell, Jeskewitz, F. Lasee, Montgomery, Gard,
Albers, Townsend, Davis, Petrowski, Pettis, Nelson, Kreibich, Ott, Hahn,
Suder, Lamb, J. Fitzgerald, Vos, LeMahieu, Gundrum, Rhoades, Gronemus,
Vruwink, Huebsch, Seidel, Lothian
and Jensen, cosponsored by Senators
Olsen, Stepp, Harsdorf, Schultz, Zien, Kedzie, Lazich, Leibham, Roessler, S.
Fitzgerald, Darling, Brown
and Kanavas. Referred to Committee on
Housing.
AB1031,1,3 1An Act to create 101.148 and 895.07 of the statutes; relating to: contractor
2notices, claims against certain contractors and suppliers of dwellings, and
3providing a penalty.
Analysis by the Legislative Reference Bureau
This bill requires contractors that contract to construct or remodel a person's
residence to deliver to the person a brochure explaining the procedures created in
this bill and that he or she must follow those procedures before suing a contractor
or window or door supplier. Under the bill, if the dwelling owner, which may be a
condominium association, is concerned about a possible construction defect, the
owner must give a written notice of claim to the contractor at least 90 working days
before starting a court action against the contractor. The bill requires the written
notice to detail the nature of the alleged construction defect, including any evidence
that the owner of the dwelling has that substantiates the nature and cause of the
defect.
After the contractor receives the notice, the bill gives the contractor time to
respond to the notice with a written offer to inspect the property, make repairs, settle
the claim with a monetary payment, or reject the claim. Under the bill, if the claim
is rejected at this point, or if the contractor fails to respond timely to the claim, the
owner can start a court action against the contractor. If the contractor makes a
settlement offer and the owner rejects the offer, the owner must do so with a written
statement that includes the reasons for the rejection. The bill requires the owner to
allow the contractor reasonable access to the dwelling if the contractor wants to

inspect the alleged construction defect. After inspection, the bill allows the
contractor to submit a settlement offer or reject the claim. If the owner rejects an
offer, the bill allows the contractor to submit a timely supplemental offer and
requires the owner to respond to the supplemental offer under the same procedures
as for the original offer.
If the property is inspected and requires some destructive testing, the bill
requires the contractor to return the dwelling to its condition before the inspection.
If the owner of a dwelling agrees to a contractor's settlement offer and the contractor
does not follow through as agreed, the bill allows the owner to file in the court action
the offer and acceptance as rebuttable evidence of an agreement.
The bill allows an owner to repair a construction defect immediately without
giving notice if the repair is necessary for health or safety.
If the dwelling owner begins a court action but fails to follow the procedures,
and the contractor has provided the owner with the proper notice and brochure,
under the bill the court must dismiss the action without prejudice. If the dwelling
owner begins a court action but fails to follow the procedures, and the contractor does
not provide the owner with the proper notice and brochure, under the bill the court
stays the action and orders the parties to comply with the bill's provisions.
Under the bill, a contractor may obtain contribution from a window or door
supplier for the cost of repairing the construction defect if the contractor follows
procedures in the bill similar to those that apply to the contractor and owner
regarding a defect, including notifying the supplier of the alleged defect and giving
the supplier an opportunity to remedy the defect or to make an offer of settlement.
The bill requires the Department of Commerce to prepare a draft of a brochure
that explains the process in this bill and to provide that draft to contractors.
Contractors are required to give a copy of the brochure to the person whom the
contractor contracts with to construct or remodel a dwelling.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1031, s. 1 1Section 1. 101.148 of the statutes is created to read:
AB1031,2,2 2101.148 Contractor notices. (1) Definitions. In this section:
AB1031,2,43 (a) "Consumer" means a person who enters into a written or oral contract with
4a contractor to construct or remodel a dwelling.
AB1031,2,65 (b) "Contractor" means a person who enters into a written or oral contract with
6a consumer to construct or remodel a dwelling.
AB1031,2,77 (c) "Deliver" means any of the following:
AB1031,3,2
11. Depositing the document or written notice in the U.S. mail or with a
2commercial delivery service, addressed to the applicable person.
AB1031,3,33 2. Giving the document or written notice personally to the applicable person.
AB1031,3,84 (d) "Dwelling" means any premises or portion of a premises that is used as a
5home or a place of residence and that part of the lot or site on which the dwelling is
6situated that is devoted to residential use. "Dwelling" includes other existing
7structures on the immediate residential premises such as driveways, sidewalks,
8swimming pools, terraces, patios, fences, porches, garages, and basements.
AB1031,3,109 (e) "Remodel" means to alter or reconstruct a dwelling. "Remodel" does not
10include maintenance or repair work.
AB1031,3,16 11(2) Notice required at time of contracting. (a) Before entering into a written
12contract to construct or remodel a dwelling, or, if the parties enter into an oral
13contract, as soon as reasonably possible, but before commencing any work to
14construct or remodel a dwelling, the contractor shall deliver to the consumer a copy
15of the brochure prepared under s. 895.07 (13) and a notice worded substantially as
16follows:
AB1031,3,1817 NOTICE CONCERNING CONSTRUCTION
18 DEFECTS
AB1031,4,319 Wisconsin law contains important requirements you must follow before you
20may file a lawsuit for defective construction against the contractor who constructed
21your dwelling or completed your remodeling project or against a window or door
22supplier or manufacturer. Section 895.07 (2) and (3) of the Wisconsin statutes
23requires you to deliver to the contractor a written notice of any construction
24conditions you allege are defective before you file your lawsuit, and you must provide
25your contractor or window or door supplier the opportunity to make an offer to repair

1or remedy the alleged construction defects. You are not obligated to accept any offer
2made by the contractor or window or door supplier. All parties are bound by
3applicable warranty provisions.
AB1031,4,54 (b) The notice required under par. (a) shall be conspicuous and in writing and
5may be included within the contract between the contractor and the consumer.
AB1031, s. 2 6Section 2. 895.07 of the statutes is created to read:
AB1031,4,8 7895.07 Claims against contractors and suppliers. (1) Definitions. In this
8section:
AB1031,4,99 (a) "Action" means a civil action or an arbitration under ch. 788.
AB1031,4,1310 (b) "Association" means a homeowner's association, condominium association
11under s. 703.02 (1m), unit owner's association, or a nonprofit corporation created to
12own and operate portions of a planned community that may assess unit owners for
13the costs incurred in the performance of the association's obligations.
AB1031,4,1514 (c) "Claim" means a request or demand to remedy a construction defect caused
15by a contractor or supplier related to the construction or remodeling of a dwelling.
AB1031,4,1816 (d) "Claimant" means the owner, tenant, or lessee of a dwelling, or an
17association, who has standing to sue a contractor or supplier regarding a
18construction defect.
AB1031,4,2219 (e) "Construction defect," in those cases when the contractor or supplier has
20provided a warranty to a consumer, means the definition of "defect" in the warranty.
21In all other cases, "construction defect" means a deficiency in the construction or
22remodeling of a dwelling that results from any of the following:
AB1031,4,2323 1. Defective material.
AB1031,4,2424 2. Violation of applicable codes.
AB1031,4,2525 3. Failure to follow accepted trade standards for workmanlike construction.
AB1031,5,2
1(f) "Consumer" means a person who enters into a written or oral contract with
2a contractor to construct or remodel a dwelling.
AB1031,5,43 (g) "Contractor" means a person that enters into a written or oral contract with
4a consumer to construct or remodel a dwelling.
AB1031,5,95 (h) "Dwelling" means any premises or portion of a premises that is used as a
6home or a place of residence and that part of the lot or site on which the dwelling is
7situated that is devoted to residential use. "Dwelling" includes other existing
8structures on the immediate residential premises such as driveways, sidewalks,
9swimming pools, terraces, patios, fences, porches, garages, and basements.
AB1031,5,1110 (i) "Remodel" means to alter or reconstruct a dwelling. "Remodel" does not
11include maintenance or repair work.
AB1031,5,1312 (j) "Serve" or "service" means personal service or delivery by certified mail,
13return receipt requested, to the last-known address of the addressee.
AB1031,5,1514 (k) "Supplier" means a person that manufactures or provides windows or doors
15for a dwelling.
AB1031,5,1716 (L) "Working day" means any day except Saturday, Sunday, and holidays
17designated in s. 230.35 (4) (a).
AB1031,5,20 18(2) Notice and opportunity to repair. (a) Before commencing an action
19against a contractor or supplier regarding a construction defect, a claimant shall do
20all of the following:
AB1031,5,2521 1. No later than 90 working days before commencing the action, deliver written
22notice to the contractor containing a description of the claim in sufficient detail to
23explain the nature of the alleged defect and a description of the evidence that the
24claimant knows or possesses, including expert reports, that substantiates the nature
25and cause of the alleged construction defect.
AB1031,6,2
12. Provide the contractor or supplier with the opportunity to repair or to remedy
2the alleged construction defect.
AB1031,6,63 (b) Within 15 working days after the claimant serves notice of claim under par.
4(a), or within 25 working days if the contractor makes a claim for contribution from
5a supplier under sub. (7) (a), each contractor that has received the notice of claim
6shall serve on the claimant any of the following:
AB1031,6,107 1. A written offer to repair or remedy the construction defect at no cost to the
8claimant. The offer shall include a description of any additional construction
9necessary to remedy the construction defect and a timetable for the completion of the
10construction.
AB1031,6,1111 2. A written offer to settle the claim by monetary payment.
AB1031,6,1212 3. A written offer including a combination of repairs and monetary payment.
AB1031,6,1813 4. A written statement that the contractor rejects the claim. The contractor
14shall state in the written response to the claim the reason for rejecting the claim and
15include a comprehensive description of all evidence the contractor knows or
16possesses, including expert reports, that substantiates the reason for rejecting the
17claim. The contractor shall also include in the written response to the claim any
18settlement offer received from a supplier.
AB1031,6,1919 5. A proposal for inspection of the dwelling under par. (c).
AB1031,7,1620 (c) If a proposal for inspection is made under par. (b), the claimant shall, within
2115 working days of receiving the contractor's proposal, provide the contractor and
22any supplier on whom a contribution claim has been made and its agents, experts,
23and consultants reasonable access to the dwelling to inspect the dwelling, document
24any alleged construction defects, and perform any testing required to evaluate fully
25the nature, extent, and cause of the claimed construction defects and the nature and

1extent of any repairs or replacements that may be necessary to remedy them. If
2destructive testing is required, the contractor shall deliver the claimant and all
3persons on whom a notice of claim or contribution claim has been served advance
4notice of the testing at least 5 working days before commencement of the testing and
5shall, after completion of the testing, return the dwelling to its pre-testing condition
6within a reasonable time after completion of the testing, at the contractor's expense.
7If any inspection or testing reveals a condition that requires additional testing to
8allow the contractor to evaluate fully the nature, cause, and extent of the
9construction defect, the contractor shall deliver notice to the claimant and all persons
10on whom a notice of claim or contribution claim has been served of the need for the
11additional testing and the claimant shall provide reasonable access to the dwelling.
12If a claim is asserted on behalf of the owners of multiple dwellings, then the
13contractor shall be entitled to inspect each of the dwellings subject to the claim. The
14claimant shall either provide a specific day for the inspection upon reasonable notice
15for an inspection or require the contractor to request in writing a date for the
16inspection, at least 3 working days before the inspection.
AB1031,7,1917 (d) Within 10 working days following completion of the inspection and testing
18under par. (c), the contractor shall serve on the claimant a notice that includes any
19of the offers or statements under par. (b) 1. to 4.
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.
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