According to KRS § 411.258, in every construction defect action brought against a construction professional, the claimant shall serve written notice of claim on the construction professional.  The notice of claim shall state that the claimant asserts a construction defect claim against the construction professional and shall describe the general nature of the defect.  The construction professional shall serve a written response on the claimant by registered mail or personal service, within twenty-one days after service of the notice of claim.

The written response shall:

• Propose to inspect the residence that is the subject of the claim and to complete the inspection within a specified time frame.
• Offer to settle the claim by monetary payment without inspection.; or
• State that the construction professional disputes the claim and will neither remedy the construction defect nor compromise and settle the claim.

If the construction professional disputes the claim or does not respond to the claimant’s notice of claim within the time, then the claimant may bring an action against the construction professional for the claim without further notice.  If the claimant rejects the inspection proposal or the settlement offer made by the construction professional, then the claimant shall serve written notice of the claimant’s rejection on the construction professional.  After service of the rejection, the claimant may bring an action against the construction professional for the construction defect claim.

If the construction professional has not received from the claimant, either an acceptance or a rejection of the inspection proposal or settlement offer, within thirty days after the claimant’s receipt of the construction professional’s response, the construction professional may terminate the proposal or offer by serving written notice to the claimant.  Thereafter, the claimant may bring an action against the construction professional for the construction defect claim.  If the claimant elects to allow the construction professional to inspect, the claimant shall provide the construction professional reasonable access to the claimant’s residence during normal working hours.

Within fourteen days following completion of the inspection, the construction professional shall serve on the claimant:

• A written offer to remedy the construction defect at no cost to the claimant, including a report of the scope of the inspection, the findings and results of the inspection, a description of the additional construction necessary to remedy the defect described in the claim, and a timetable for the completion of this construction; or
• A written offer to compromise and settle the claim by monetary payment; or
• A written statement that the construction professional will not proceed further to remedy the defect.

The claimant shall have the right to accept or reject the proposed construction defect correction, or the monetary offer to settle the claim.  If the construction professional does not proceed further to remedy the construction defect within the agreed timetable, or if the construction professional fails to comply with the statutory provisions, then the claimant may bring an action against the construction professional for the claim without further notice.  If the claimant rejects the offer made by the construction professional to either remedy the construction defect or to settle the claim by monetary payment, then the claimant shall serve written notice of the claimant’s rejection on the construction professional.  After service of the rejection notice, the claimant may bring an action against the construction professional for the construction defect claim.

If the construction professional has not received from the claimant, either an acceptance or a rejection of the offer made, within thirty days after the claimant’s receipt of the construction professional’s response, the construction professional may terminate the offer by serving written notice to the claimant.  Any claimant accepting the offer of a construction professional to remedy the construction defect shall serve the construction professional with a written notice of acceptance within a reasonable time period after receipt of the offer, and no later than thirty days after receipt of the offer.  The claimant shall provide the construction professional reasonable access to the claimant’s residence during normal working hours to perform and complete the construction.