AAI Urges Wash. Gov. to Sign Construction

The Alliance of American Insurers is urging Washington Gov. Gary Locke (D) to sign SB 6409, which the organization believes will help reduce the rising costs of litigation faced by the state’s construction industry.

“We see this bill as a positive step in dealing with the rising costs of litigation for construction defects,” wrote Rita Nowak, Alliance assistant vice president of property/casualty, in a letter to Gov. Locke. “The goal of the legislation is to bring insurers back into the contractor liability marketplace by eliminating frivolous construction defect litigation. It also would benefit homeowners by providing a tool to resolve construction defect suits in an expedient manner.”

The bill, which was passed unanimously by both the House and Senate, would help resolve disputes and fix defects more expediently by requiring homeowners to give contractors 45-day notice of a construction problem and their intent to file suit.

It also gives the construction professional the opportunity to offer a “cure” for the construction problem prior to filing of the lawsuit. In addition, the bill sets up an alternative dispute resolution procedure, which also would help control the cost of lawsuits.