If you are at a point where you can no longer work with your Remodel Contractor or Homebuilder and are wanting to terminate the relationship, consider the following steps:

Step One: If you have a written Contract, review it to determine if it contains any specific provisions which identify what types of events constitute a material breach of the Contract; the proper method for providing notice of the breach; and most importantly, whether you are required to provide the Homebuilder/Contractor an opportunity to cure the default before terminating the relationship.

Step Two: If the Contract requires an opportunity to cure the default, then send a Notice of Default & Request to Cure demand letter which specifically: (1) identifies the applicable Contract provisions; (2) identifies and describes the events of default; and (3) invites a response to cure the defects within the applicable time frame. If you do not have a written Contract or a Contract which requires an opportunity to cure before terminating the relationship, then you should still consider sending a similar type Notice before formally terminating the relationship just to be safe.

Step Three: If you did not receive a response, or an acceptable response to the Notice of Default & Request to Cure or the Contract does not require an opportunity to cure, then the next step is to send a Notice of Default and Contract Termination. In this Notice, identify: (1) the basis for termination; (2) any demands to the Homebuilder/Contractor, e.g., return of unused Contract funds, supporting documents for expenses incurred, a list of subcontractors and material suppliers who have been paid but who have not yet fully performed, and/or identification of material already paid for and purchased, but not yet delivered or installed; and (3) if the Homebuilder/Contractor has stored any tools or equipment at the Property, a demand to immediately retrieve them.

If any of the work is defective and you intend to offset or seek reimbursement of the cost to correct the defective work, then you will need to either include or separately send a Chapter 27 Notice and satisfy the statutory requirements before correcting the defective work.