The proposed bill amends Arkansas law by establishing a new subchapter titled "Claims Against Contractors and Suppliers," which sets forth procedures for addressing claims related to construction defects. It introduces definitions for key terms such as "claim," "claimant," "construction defect," and "contractor." The bill requires claimants to provide written notice to contractors or suppliers detailing the alleged defect and supporting evidence before initiating legal action. Contractors must respond within specified timeframes with options for repair, monetary settlement, or rejection of the claim, including reasons for any rejection.

Additionally, the bill outlines the process for contractors to notify suppliers of claims and mandates that suppliers respond within a specified timeframe. It emphasizes the importance of communication between contractors and suppliers, stating that actions against suppliers cannot commence without prior notice and an opportunity to remedy the defects. The legislation aims to streamline the claims process, promote accountability, and ensure that both contractors and suppliers have clear guidelines to follow, ultimately facilitating resolution before litigation. The bill also amends Arkansas Code 4-75-1502 to require consumers to provide written notice of alleged construction defects to contractors or suppliers, allowing them the opportunity to address the issues before legal action is taken.