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53	53	STATE OF OKLAHOMA
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55	55	1st Session of the 58th Legislature (2021)
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57	57	SENATE BILL 314 By: Hall
58	58
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63	63	AS INTRODUCED
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65	65	An Act relating to construction contracts; amending
66	66	15 O.S. 2011, Section 765.6, as amended by Section 1,
67	67	Chapter 111, O.S.L. 2012 (15 O.S. Supp. 2020, Section
68	68	765.6), which relates to construction defects;
69	69	modifying definition; requiring certain contract
70	70	provision; clarifying f ailure to have certain
71	71	contract provision; making failure to comply with
72	72	certain provision a breach of contract; stating time
73	73	to remedy defects; providing an effective date; and
74	74	declaring an emergency .
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79	79	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
80	80	SECTION 1. AMENDATORY 15 O.S. 2011, Section 765.6, as
81	81	amended by Section 1, Chapter 111, O.S.L. 2012 (15 O.S. Supp. 2020,
82	82	Section 765.6), is amended to read as follows:
83	83	Section 765.6. A. For the purposes of this section:
84	84	1. “Construction defect” means a deficiency in or a deficienc y
85	85	arising out of the design, specifications, survey ing, planning,
86	86	supervision or observation of construction or construction of
87	87	residential improvements that results from any of the following:
88	88	a. defective material, products or components used in the
89	89	construction of residential improvements,
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141	141	b. violation of the applicable codes in effect at the
142	142	time of construction of residential improvements,
143	143	c. failure of the design of resid ential improvements to
144	144	meet the applicable professional standards of care at
145	145	the time of governmental approval of the design of
146	146	residential improvements, or
147	147	d. failure to construct residential improvements in
148	148	accordance with accepted trade standards for go od and
149	149	workmanlike construction at the time of construction ,
150	150	or
151	151	e. failure to construct or install any feature of new
152	152	construction according to the terms of the contract,
153	153	design or reasonable expectations of the purchaser;
154	154	2. “Contractor” means a person or entity providing labor,
155	155	services or materials in the c onstruction of a new resid ence or
156	156	alteration of, repair of, or addition to an existing residence; and
157	157	3. “Residence” means any structure designed and used only for
158	158	residential purposes, together with all attached and unattached
159	159	structures, constructed by the contractor, regardless of whether the
160	160	real property upon which the reside nce is located was purchased from
161	161	the contractor. Such term also includes a residence upon which
162	162	alterations or repairs we re performed by the contractor at the
163	163	direction of the homeowner.
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215	215	B. A contract for the construction of a new residence or for an
216	216	alteration of, repair of, or addition to an existing residence may
217	217	include provisions which:
218	218	1. Require a homeowner, prior t o filing a lawsuit for
219	219	construction defects, to present to the contractor a writte n notice
220	220	of construction defects; and
221	221	2. Allow the contractor to inspect any construction defects and
222	222	present to the homeowner a written response which shall include the
223	223	contractor’s offer to repair defects or compensate homeown er for
224	224	such defects within thirty (30) days after receipt of the notice of
225	225	defects.
226	226	If such provisions are included in a contract, the homeowner
227	227	shall not file a lawsuit against the contractor until th e conditions
228	228	precedent have been fulfilled. In the eve nt the homeowner files a
229	229	lawsuit against the contractor without fulfilling the conditions
230	230	precedent, the contractor shall be entitled to a stay of proceedings
231	231	until such conditions have been fulfilled. If the conditions
232	232	precedent have been fulfilled, the homeowner may seek remedies
233	233	against the contractor as provided by law.
234	234	C. A contract for new construction of a residence shall have a
235	235	provision that upon th e written request of the purchaser, the
236	236	contractor shall meet in person with the purchaser within a
237	237	reasonable time to discuss observable construction defects or change
238	238	orders for the new construction. Failure of a contract to have an
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290	290	in-person meeting provision shall require the contractor to meet
291	291	with the purchaser, upon written notice, not later than seventy-two
292	292	(72) hours after receiving notice. Failure of a contractor to
293	293	comply with the provision s of this subsection shall be deemed an
294	294	intentional breach of contract by the contractor. Observable
295	295	construction defects shall be remedied within thirty (30) days after
296	296	meeting with the contractor.
297	297	SECTION 2. This act shall become effective July 1, 2021.
298	298	SECTION 3. It being immediately necessary for the preservation
299	299	of the public peace, health or safety, an emergency is hereby
300	300	declared to exist, by reason whereof this act shall take effect and
301	301	be in full force from and after its passage and appro val.
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303	303	58-1-934 NP 1/7/2021 5:54:17 PM

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB314 Compare Versions