Are You Required to Let a Contractor Fix Mistakes?
In Indiana, a homeowner might be required to let a contractor fix its mistakes, depending on the situation. A recent Indiana case discussed this very situation. In a Memorandum Decision filed on October 9, 2024, the Indiana Court of Appeals addressed a dispute between a homeowner and the contractor hired to install new floors in her home Indiana Home Pro, LLC v. Joan Miller, 2024 WL 4448903, Indiana Court of Appeals, October 9, 2024.
The scenario in this case was common. After hiring a contractor to replace the flooring in her home, the homeowner noticed problems and contacted the contractor. The contractor inspected the flooring, determined the problem must have been defective product, and filed a warranty claim with the manufacturer. In the meantime, the homeowner, having lost faith in the original contractor, hired a second contractor to re-install new flooring. The homeowner then sued and won a judgment against the original contractor for the cost to re-do the work. The original contractor appealed the judgment on the basis that the homeowner failed to allow them to fix their mistake, as provided under Indiana statute.
Indiana Code Section 32-27-3-12(a) requires a construction professional, upon entering into a contract for sale, construction, or substantial remodeling of a residence, to “provide notice to each homeowner of the construction professional's right to offer to cure construction defects before a homeowner may commence litigation against the construction professional.” If a construction professional fails to give a homeowner the notice required under the section, then the homeowner does not have any obligation to allow the contractor to cure, if the contractor offers, and the homeowner may proceed to file suit.
If a contractor does not give a notice, preferably in its construction contract or invoice, that it may have a right to cure, then the contractor cannot later claim that the homeowner is required to allow the contractor to cure its breaches of the construction contract. This is what happened in the case before the court, and the court declined to overturn the judgement.
A homeowner should carefully read any contract presented to them, including all terms and conditions, in order to determine if they may have to allow to the contractor an opportunity to cure if the work is not performed as anticipated.