What a demand letter is
A demand letter is a formal written notice from the firm to the contractor, and where appropriate to the contractor's bond company or insurer. It states what the contract required, what went wrong, what the independent inspection found, what it costs to make it right, and what you are asking for by a specific date.
A good demand letter is not a threat. It is a clear presentation of a claim that is ready to be pursued. Contractors and their insurers respond to letters that show the homework has been done.
When it fits
- The contractor is licensed.
- The contract is clear and the breach can be stated specifically.
- The amount has been verified by a neutral third party and by written repair bids.
- You want a resolution: payment, a refund, or completed work.
It is usually not the right tool when the facts are still vague, when there is no independent report, or when the amount is small enough that small claims court makes more sense.
What has to be in place first
- The file. Contract, plans, payments, photos, and messages.
- An independent inspection report. Written by a licensed inspector or engineer who is not bidding on the repair. The owner pays the inspector directly.
- Repair bids. Written, itemized bids to correct or complete the work.
- A damages analysis. We compare the report, the bids, the contract, and your payments to arrive at a supportable number.
What the engagement covers
The demand letter engagement is a limited-scope, fixed-fee service. It includes a review of your file, a consultation, the demand letter, and a defined amount of follow-up time to handle the contractor's response. The written agreement states exactly what is included. Payment plans are available, and the fee is quoted at your case review.
This engagement covers the period before any lawsuit. If the dispute is not resolved and you choose to go to court, that is a separate engagement with its own agreement.
What can happen next
- The contractor pays, refunds, or agrees in writing to correct the work.
- The contractor or its insurer makes an offer, and negotiation follows.
- The contractor does not respond or refuses. The file is then ready for a Contractors Board complaint, a claim on the bond, Justice Court, or litigation.
Defects in a home are different. If your claim is a constructional defect in a residence, Nevada requires a specific statutory notice under Chapter 40 before a lawsuit. A general demand letter does not satisfy it. See construction defect claims.
Prefer to write your own? Use our free demand letter builder.
This page is general information about Nevada law, not legal advice. Every dispute turns on its own facts and documents.