Identify the demand
Note the sender, alleged facts, requested relief, stated deadlines and referenced contract provisions.
Breach issuesConstruction Law Insights / Responding to legal demands
What Should You Do After Receiving a Construction Demand Letter?
First considerations after a letter alleges nonpayment, default, deficient work or another construction claim.
The Short Answer
What you should know first.
Read the demand carefully, preserve relevant evidence and identify response dates before sending a substantive reply. A demand letter is an allegation or request, not by itself a finding that the recipient is liable.
Key Considerations
Important factors to evaluate.
The relevant contract terms, records and law help determine how these questions apply to a particular construction project.
Preserve the record
Retain agreements, payment documents, notices, project correspondence and relevant photographs.
Contract recordsAvoid impulsive admissions
A rushed written response can affect negotiations or later proceedings; consider professional review.
Litigation guidanceReview deadlines
Notice duties, liens, arbitration provisions and lawsuit deadlines may have separate requirements.
Lien considerationsA Practical Starting Point
Organize the facts before deciding on next steps.
Construction disputes can involve short notice periods and overlapping obligations. A clear set of records helps make any review more productive.
Record when and how the letter was received.
Identify demands, allegations and any stated response date.
Organize contracts, invoices and communications.
Consider legal review before responding or negotiating.
Frequently Asked Questions
Common follow-up questions.
Is a demand letter the same as a lawsuit?
No. A demand letter generally precedes or accompanies a claim but is not itself a court complaint.
Must every demand letter be answered immediately?
There is no universal rule. Promptly assess stated deadlines, contract requirements and applicable law.
Can a demand be negotiated?
Often claims are discussed or negotiated, though the available options depend on the circumstances.
Need guidance on a construction matter?
Each project and agreement is different. Contact AW Construction Law to discuss the circumstances, relevant documents and possible next steps.