Assembly Bill No. 512-Assemblymen Lee, Hickey, Tiffany, Parks, Amodei, Mortenson, Braunlin, Williams, Neighbors, Perkins, Bache, Humke, Von Tobel, Carpenter, Sandoval, Gustavson, de Braga, Marvel, Evans, Koivisto, Hettrick, Price, Chowning, Cegavske, Manendo, Freeman, Goldwater, Giunchigliani, Ohrenschall, Krenzer, Lambert, Herrera and Buckley
May 20, 1997
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Referred to Committee on Commerce
SUMMARY--Revises provisions relating to contractors who construct residential swimming pools or spas. (BDR 54-1029)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to contractors; providing for the regulation of contracts for the construction of residential swimming pools and spas; prohibiting certain acts and omissions by contractors regarding the construction of residential swimming pools and spas; requiring specific disclosures by certain contractors; requiring the state contractors' board to adopt an informational statement; providing a penalty; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 624 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.
Sec. 2 As used in sections 2 to 5, inclusive, of this act, unless the context otherwise requires, "contract for the construction of a residential pool or spa" means a contract between a contractor and the owner of a single-family residence, or the land adjacent thereto, for the construction or alteration of a residential pool or spa to be used for swimming, therapy or decoration at the residence or on the land adjacent thereto, including, without limitation, all appurtenant equipment, where the aggregate price of all such contracts between the contractor and the owner, including labor, services and materials to be furnished by the contractor, exceeds $1,000. The term does not include contracts for the delivery or setup of aboveground pools and spas.
Sec. 3 1. A contract for the construction of a residential pool or spa must be in writing. Such a contract must include, but is not limited to:
(a) An agreement by the contractor to take such actions as are necessary to ensure that a professional engineer registered pursuant to chapter 625 of NRS conducts, before any work on the residential pool or spa is begun, an analysis of the soil at the site of the proposed construction to ascertain the properties of the soil and determine whether the soil is suitable for such construction. The contractor shall not begin construction of a residential pool or spa until:
(1) The results of such an analysis have been reported in writing by the professional engineer to the contractor; and
(2) A copy of the report has been provided by the contractor to the owner or his designated agent.
(b) An agreement by the contractor to provide to the owner or his designated agent, before each stage of construction is begun, a written schedule for the completion of the particular stage or phase of the construction. Such a schedule must not set a schedule for the completion of a stage or phase that exceeds 30 days, except for delay caused by an act of God, unless the owner agrees in writing to a longer period for the completion of the particular stage or phase.
(c) An agreement by the contractor to provide to each subcontractor, if any, prompt and full payment upon completion of each stage or phase of construction for the fair market value of services rendered by the subcontractor. Before requesting payment for the next stage or phase of construction, the contractor shall deliver to the owner an affidavit signed by the subcontractor attesting to the fact that full payment has been made to the subcontractor for the previous stage or phase of construction. In any action commenced by a subcontractor to enforce a lien pursuant to chapter 108 of NRS, such an affidavit constitutes a rebuttable presumption of full payment to the subcontractor for the fair market value of services rendered by the subcontractor for that stage or phase of construction.
(d) Any other provision required by the board to be included in such a contract.
2. The following acts, among others, constitute cause for disciplinary action under NRS 624.300:
(a) The failure of a contractor to:
(1) Provide a written schedule for the completion of each stage or phase of the construction in accordance with paragraph (b) of subsection 1;
(2) Complete each stage or phase of construction within the time set forth in the applicable schedule;
(3) Provide prompt and full payment to a subcontractor; or
(4) Deliver to an owner the required affidavits in accordance with paragraph (c) of subsection 1 before requesting payment for the next stage or phase of construction.
(b) The commencement by a contractor of construction of a residential pool or spa before the results of a soil analysis conducted in accordance with paragraph (a) of subsection 1 have been reported by the professional engineer to the contractor.
Sec. 4 It is unlawful for a contractor, with regard to a contract for the construction of a residential pool or spa:
1. To require a cash deposit or a down payment that:
(a) Exceeds $200 or 2 percent of the price stated in the contract, excluding finance charges, whichever is less, for a residential pool or spa.
(b) Exceeds the amount set forth in paragraph (a) of this subsection plus 50 percent of the actual cost of a custom-made item or material for an improvement which includes the installation of a custom-made item or material specifically requested by the owner that is available from only one source of supply or that could not reasonably be used by the contractor in another project.
2. If the contract for the construction of a residential pool or spa includes construction or alteration that is phased, staged or sequential and includes, without limitation, work involving excavation, iron, plumbing, gas, electricity, concrete, gunite, tile or plaster:
(a) Except for a down payment authorized by subsection 1, to receive or establish a schedule of payments that provides for the contractor to receive a payment which, excluding finance charges, exceeds the contracted amount or the fair market value of the work actually performed as of the date of the payment.
(b) To establish a schedule of payments which does not specifically reference the amount of work or services to be performed and the amount of materials and equipment to be provided as of the date of each payment.
Sec. 5 1. The board shall adopt an informational statement to be distributed to potential customers by contractors who offer contracts for the construction of residential pools or spas. The informational statement must be entitled "Notice to the Owner."
2. Before a contractor begins construction pursuant to a contract for the construction of a residential pool or spa, the contractor shall first provide to the owner of the residence or his designated agent a copy of the informational statement adopted for this purpose by the board pursuant to subsection 1.
Sec. 6 The amendatory provisions of this act do not apply to offenses that are committed before October 1, 1997.
Sec. 7 The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.