Senate passes construction-defects bills

Monday, April 30, 2001 | 10:38 a.m.

CARSON CITY -- Legislation targeting shady swimming pool builders and construction defects have passed the Senate.

Bills which the Senate Commerce and Labor Committee worked on for two months passed the Senate Friday, the final day for clearance. They are now headed for the Assembly.

Regulations governing swimming pool builders were prompted by a history of problems in Southern Nevada in which homeowners were stuck with large holes in their yards, large loans and liens against their homes.

Senate Bill 216 prohibits contractors from distributing false information, workers would be required to get sheriff's work cards and contractors would not be able to provide financing.

Before issuing a contractor's license to those engaged in swimming pool construction, the state Contractors Board would do a background investigation and it could require the contractor to put up a surety bond. The state Financial Institutions Division would write a model contract in language homeowners can understand.

The bill would place limitations on a contractor's ability to place a lien on a home.

The Legislature passed a bill in 1997 intended to clean up the swimming pool industry, but it was vetoed by Gov. Bob Miller.

"That gave them (swimming pool contractors) an opportunity to clean up their industry," said Sen. Randolph Townsend, R-Reno, chairman of Senate Commerce and Labor Committee. "They not only didn't clean up their industry, It got worse."

To discourage construction defects in homes, county and city governments must call for geotechnical reports to be completed before construction of foundations. The reports must include the soil and geology of the site, information on the ground water that may affect the foundation and a written statement from the architect, civil engineer or structural engineer that the project is compatible with the soil conditions.

A homeowner under Senate Bill 516 would file a complaint with the state Contractors Board, which would look into a dispute over a construction. If the resident is still not satisfied with the repairs, a suit could be filed.

Townsend said the contractor, if found to be at fault, would not only face a civil suit but could lose his state license.

"There is greater motivation now (to fix the defect) than there would be with simple litigation," he said.

Senatenj Bill 274, concerning construction liens, says subcontractors have the right to stop work if they don't get paid.