Hidden away within the Texas Property Code is the Residential Construction Liability Act (known as RCLA) which provides procedures for making and responding to construction complaints, as well as, limitations on the type and amount of damages that can be awarded should a lawsuit occur. The RCLA applies to claims between homeowners and contractors who have contracted with one another directly, and only to new construction or remodeling of a home.

           The procedures require that before a lawsuit can be filed, the homeowner must send the contractor, via certified mail return receipt requested, a written notice of the construction effect with sufficient detail to clearly identify the problem. Upon receipt of the notice letter, the contractor has 35 days to inspect the problem and 45 days to make a written offer to resolve the complaints. The offer must either specify the repairs to be made and by whom, or set out a cash offer to compensate the homeowner. The homeowner, then, has 25 days to accept or reject the contractor's proposal. If accepted, the terms of the proposal must be completed within 45 days.

           Because of the time frames imposed by the RCLA, it is best to act as soon as a defect is discovered. Should the procedures fail and a settlement is not reached, the homeowner has the option of filing a lawsuit. However, for most claims, the litigation must be started within 2 years from the date the problem is discovered; 4 years if relying solely on contract law. The court will also likely order mediation, or possibly arbitration if required by the original contract between the homeowner and contractor. The Texas Residential Construction Commission offers such resolution services.

           For assistance in bringing or defending against a claim under the RCLA, you should consult with an attorney of your choice. Additional remedies may also be available.