Req. No. 934 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 314 By: Hall
AS INTRODUCED
An Act relating to construction contracts; amending
15 O.S. 2011, Section 765.6, as amended by Section 1,
Chapter 111, O.S.L. 2012 (15 O.S. Supp. 2020, Section
765.6), which relates to construction defects;
modifying definition; requiring certain contract
provision; clarifying f ailure to have certain
contract provision; making failure to comply with
certain provision a breach of contract; stating time
to remedy defects; providing an effective date; and
declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 15 O.S. 2011, Section 765.6, as
amended by Section 1, Chapter 111, O.S.L. 2012 (15 O.S. Supp. 2020,
Section 765.6), is amended to read as follows:
Section 765.6. A. For the purposes of this section:
1. “Construction defect” means a deficiency in or a deficienc y
arising out of the design, specifications, survey ing, planning,
supervision or observation of construction or construction of
residential improvements that results from any of the following:
a. defective material, products or components used in the
construction of residential improvements,
Req. No. 934 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
b. violation of the applicable codes in effect at the
time of construction of residential improvements,
c. failure of the design of resid ential improvements to
meet the applicable professional standards of care at
the time of governmental approval of the design of
residential improvements, or
d. failure to construct residential improvements in
accordance with accepted trade standards for go od and
workmanlike construction at the time of construction ,
or
e. failure to construct or install any feature of new
construction according to the terms of the contract,
design or reasonable expectations of the purchaser;
2. “Contractor” means a person or entity providing labor,
services or materials in the c onstruction of a new resid ence or
alteration of, repair of, or addition to an existing residence; and
3. “Residence” means any structure designed and used only for
residential purposes, together with all attached and unattached
structures, constructed by the contractor, regardless of whether the
real property upon which the reside nce is located was purchased from
the contractor. Such term also includes a residence upon which
alterations or repairs we re performed by the contractor at the
direction of the homeowner.
Req. No. 934 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
B. A contract for the construction of a new residence or for an
alteration of, repair of, or addition to an existing residence may
include provisions which:
1. Require a homeowner, prior t o filing a lawsuit for
construction defects, to present to the contractor a writte n notice
of construction defects; and
2. Allow the contractor to inspect any construction defects and
present to the homeowner a written response which shall include the
contractor’s offer to repair defects or compensate homeown er for
such defects within thirty (30) days after receipt of the notice of
defects.
If such provisions are included in a contract, the homeowner
shall not file a lawsuit against the contractor until th e conditions
precedent have been fulfilled. In the eve nt the homeowner files a
lawsuit against the contractor without fulfilling the conditions
precedent, the contractor shall be entitled to a stay of proceedings
until such conditions have been fulfilled. If the conditions
precedent have been fulfilled, the homeowner may seek remedies
against the contractor as provided by law.
C. A contract for new construction of a residence shall have a
provision that upon th e written request of the purchaser, the
contractor shall meet in person with the purchaser within a
reasonable time to discuss observable construction defects or change
orders for the new construction. Failure of a contract to have an
Req. No. 934 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
in-person meeting provision shall require the contractor to meet
with the purchaser, upon written notice, not later than seventy-two
(72) hours after receiving notice. Failure of a contractor to
comply with the provision s of this subsection shall be deemed an
intentional breach of contract by the contractor. Observable
construction defects shall be remedied within thirty (30) days after
meeting with the contractor.
SECTION 2. This act shall become effective July 1, 2021.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and appro val.
58-1-934 NP 1/7/2021 5:54:17 PM