Letter of Demand for Damages

A letter of demand for damages is a formal written notice sent by a party who has suffered losses or injuries to the party who is allegedly responsible for those damages, requesting compensation or other remedies. In construction, a property owner may send a letter of demand to a contractor for damages resulting from defective or incomplete work, such as water infiltration, structural failures, or code violations. The letter typically includes a description of the damages, the legal and factual basis for the claim, the amount of compensation sought, and a deadline for response or payment. The purpose of a letter of demand is to put the contractor on notice of the claim, to preserve the owner’s legal rights and remedies, and to seek a prompt and fair resolution of the dispute without the need for litigation.