Delaware Code Title 6 Sec. 3508 – Procedure for dispute of claims
(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.
Terms Used In Delaware Code Title 6 Sec. 3508
- Contract: A legal written agreement that becomes binding when signed.
- Contractor: includes , but is not limited to, an architect, engineer, real estate broker or agent, subcontractor or other person, who enters into any contract with another person to furnish labor and/or materials in connection with the erection, construction, completion, alteration or repair of any building or for additions to a building, by such contractor, or for the sale to such other person of any lands and premises, whether owned by such contractor or another, upon which such contractor undertakes to erect, construct, complete, alter or repair any building or addition to a building. See Delaware Code Title 6 Sec. 3501
- Owner: means a person who has an interest in the lands or premises upon which a contractor has undertaken to erect, construct, complete, alter or repair any building or addition to a building. See Delaware Code Title 6 Sec. 3501
- Person: shall include a corporation, partnership, limited liability corporation or partnership, business trust, other association, estate trust, foundation or a natural person. See Delaware Code Title 6 Sec. 3501
- Subcontractor: means a person who enters into a contract to furnish labor and/or materials to a contractor. See Delaware Code Title 6 Sec. 3501
(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.
73 Del. Laws, c. 344, § ?1; 70 Del. Laws, c. 186, § ?1; 74 Del. Laws, c. 357, §§ ?7, 8;