Delaware § 3508 Procedure for dispute of claims

Delaware Statutes

§ 3508 — Procedure for dispute of claims

Delaware·Title 6·Ch. 35 BUILDING CONSTRUCTION PAYMENTS

(a)If an owner or contractor disputes any amounts stated in an invoice for payment, then:

(1)The party disputing the invoice must notify the other party in writing within 7 days of the receipt of the disputed invoice; and

(2)The party disputing the invoice must be specific as to those items within the invoice that are disputed.

(b)If notice of dispute is not given within the time required by this section, then the invoice is deemed to be accepted as submitted.

(c)If notice of dispute is not given within the time required by this section, such lack of notice does not constitute acceptance of the work performed.

(d)This section shall not apply:

(1)To public works contracts awarded under Chapter 69 of Title 29;

(2)To contracts for the erection of 6 or fewer residential units wh

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(a) If an owner or contractor disputes any amounts stated in an invoice for payment, then:

(1) The party disputing the invoice must notify the other party in writing within 7 days of the receipt of the disputed invoice; and

(2) The party disputing the invoice must be specific as to those items within the invoice that are disputed.

(b) If notice of dispute is not given within the time required by this section, then the invoice is deemed to be accepted as submitted.

(c) If notice of dispute is not given within the time required by this section, such lack of notice does not constitute acceptance of the work performed.

(d) This section shall not apply:

(1) To public works contracts awarded under Chapter 69 of Title 29;

(2) To contracts for the erection of 6 or fewer residential units which are under construction simultaneously, or for the alteration or repair of any single residential unit;

(3) To contracts for the purchase of materials by a person performing work on that person’s own real property; or

(4) Where the terms of a contract specify a different procedure for disputing claims for payment.

(e) This section shall not apply where the terms of a contract between a general or prime contractor and a subcontractor specify a difference procedure for disputing claims for payment.

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