Nevada Senate OKs construction defect compromise

Tuesday, May 27, 2003 | 11:15 a.m.

CARSON CITY -- A bill allowing builders the right to repair construction defects on homes and to avoid being drawn into lawsuits has passed the Legislature.

The Senate on Monday, by a unanimous voice vote, adopted the Assembly version of Senate Bill 241, which was a compromise between contractors and attorneys who represent homeowners in lawsuits over shoddy construction.

Senate Minority Leader Dina Titus, D-Las Vegas, called it "a potential solution" to the growing number of suits by homeowners against contractors who are being hit with increased liability insurance rates because of the litigation.

The bill, on its way to Gov. Kenny Guinn, changes the current law that permits homeowners to immediately file suit without giving contractors a chance to repair the workmanship.

SB241 says a homeowner who has a complaint must notify the contractor, who in turn can bring a subcontractor in to address the question of whether there is a defect.

The contractor and the subcontractor must be given access to inspect the premises. The builder then must respond within 90 days to those that complained. If the contractor decides to make the repairs, it has 105 days to complete the job if the notice was received from four or fewer owners and 150 days if more than five homeowners were involved.

If the builder does not make the repairs or if they are not completed within the deadline, the consumer can file suit. But the dispute may be placed first before the state Contractors Board, which could make a recommendation.

The homeowner would be able to reject the findings of the Contractors Board and still file suit.

Contractors and attorneys for homeowners have battled for the last three sessions of the Legislature on construction defect bills.

"This bill will circumvent (the) pending crisis," Titus said.