O.C.G.A. § 8-2-38 states that in every action the claimant shall provide service of written notice of claim on the contractor no later than 90 days before initiating an action against a contractor.  The notice of claim shall state that the claimant asserts a construction defect claim.  The notice of claim shall describe the nature of the alleged construction defects and the results of the defects.  In addition, the claimant shall provide to the contractor any evidence that depicts the nature and cause of the construction defect.

Within 30 days after service of the notice of claim by a claimant, each contractor that has received the notice of claim shall serve on the claimant a written response to the claim or claims, which either:

• Offers to settle the claim by monetary payment, the making of repairs, or a combination of both, without inspection; or
• Proposes to inspect the dwelling or common area that is the subject of the claim.

If the contractor wholly rejects the claim and will neither remedy the alleged construction defect nor settle the claim or does not respond to the claimant’s notice of claim within the time, the claimant may bring an action against the contractor for the claims without further notice.  If the claimant rejects the settlement offer made by the contractor, the claimant shall provide written notice of the claimant’s rejection to the contractor.  The notice shall include the reasons for the claimant’s rejection of the contractor’s proposal or offer.

If a proposal for inspection is made, the claimant shall, within 30 days of receiving the contractor’s proposal, provide the contractor and its subcontractors prompt and reasonable access to the dwelling or common area, to fully and completely evaluate the nature, extent, and cause of the claimed defects and the nature and extent of any repairs or replacements that may be necessary.  If a claim is asserted on behalf of owners of multiple dwellings, the contractor shall be entitled to inspect each of the dwellings which may be or appear to be affected by the alleged defect.  Inspection shall be completed within a 30 day period if reasonable or within a reasonable period if completion is not reasonable within 30 days.

Within 14 days following completion of the inspection, the contractor shall serve on the claimant:

• A written offer to fully or partially remedy the construction defect at no cost to the claimant including a description of any additional construction necessary to remedy the defect and an anticipated timetable for the completion of such construction;
• A written offer to settle the claim by monetary payment;
• A written offer including a combination of repairs and monetary payment; or
• A written statement that the contractor will not proceed further to remedy the defect, along with the reasons for such rejection.

If a claimant accepts a contractor’s offer made and the contractor does not proceed to make the monetary payment or remedy the construction defect or both within the agreed timetable, the claimant may bring an action against the contractor for the claim without further notice.  The claimant may also file the contractor’s offer and claimant’s acceptance which will create a rebuttable presumption that a binding and valid settlement agreement has been created and should be enforced by the court or arbitrator.  If a claimant receives a written statement that the contractor will not proceed further to remedy the defect or if the contractor fails to serve the claimant with the required written offer or written statement within the prescribed time, the claimant may bring an action against the contractor for the claim without further notice.  The contractor’s written statement shall include all known reasons for the rejection of the claim.  If the claimant rejects the offer made by the contractor to remedy the construction defect or to settle the claim by monetary payment or a combination of each, the claimant shall serve written notice of the claimant’s rejection on the contractor.  Upon receipt of a claimant’s rejection, the contractor may make a supplemental offer of repair or monetary payment or both to the claimant, within 15 days of receiving the rejection.  If the claimant rejects the supplemental offer made by the contractor to repair the construction defect or to settle the claim by monetary payment or a combination of each, the claimant shall serve written notice of the claimant’s rejection on the contractor.

If a claimant rejects a reasonable offer, including any reasonable supplemental offer, the claimant may not recover an amount in excess of:

• The fair market value of the offer of settlement or the actual cost of the repairs made; or
• The amount of a monetary offer of settlement.

Any claimant accepting the offer of the contractor to remedy a construction defect shall serve the contractor with a written notice of acceptance within 30 days after receipt of the offer.  If no response is served upon the contractor within the 30 day period, then the offer shall be deemed accepted.  If a claimant accepts a contractor’s offer to repair a construction defect described in a notice of claim, the claimant shall provide the contractor and its subcontractors prompt and unfettered access to the dwelling or common area to perform and complete the construction.