Guinn signs construction bill

Tuesday, June 10, 2003 | 9:19 a.m.

CARSON CITY -- Gov. Kenny Guinn signed 73 bills Monday, including two that are expected to have major effects on property owners, home buyers and contractors in the booming construction market of Southern Nevada.

Senate Bill 241 requires the owner of a building with defective construction to give the contractor responsible for the work a chance to make repairs before a lawsuit is filed.

"The goal of this is to get homes fixed quickly without having lawsuits happen and to bring builders and homeowners back together to make that happen," said Steve Hill, chairman of the Coalition for Fairness in Construction.

The new law may also keep construction-defect lawsuits from piling up in Southern Nevada courtrooms, proponents of the legislation said.

At the end of 2002, there were 227 construction-defects lawsuits in the courts in Las Vegas, and three judges were needed to handle the caseload. Hill said it is now down to about 100.

"Hopefully, starting in August we will have fewer lawsuits and more satisfied homeowners," Hill said, referring to the Aug. 1 effective date of the new law.

A timetable is established for the builder to conduct an inspection and then make the repairs deemed warranted.

Either the building owner or the builder can ask the state Contractors Board to determine whether the repairs are needed and how they should be made. But any decision by the board is not binding and cannot be used for evidence in a lawsuit.

Contractors are hoping the new law will help bring down their insurance costs. The premiums for contractors have shot up by 200 to 300 percent in some cases because of the litigation, contractors have complained.

The governor also signed Assembly Bill 220, which giving the Contractors Board more authority in licensing builders. A person who has not had a contractor's license for two consecutive years prior to applying must submit proof of financial responsibility.

Under the new law, effective immediately, the state board has the authority to require the contractor to establish an independent account for the payments of the purchaser of a new home to protect the money of the homeowner if something goes wrong.

Any information gathered by the state board doing an investigation of a contractor must be confidential until the board imposes disciplinary action or the target of the investigation requests the records be open. Any reprimand that is issued must be public.

Under Assembly Bill 432, effective Oct. 1, the state labor commissioner has increased authority over contractors on public works projects. A contractor who submits false information on the workers on the project can be fined up to $50 per day for each violation.

Among other bills signed by Guinn: