(REPRINTED WITH ADOPTED AMENDMENTS) SECOND REPRINT
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; 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, 3 and 4 of this act.
Sec. 2 As used in sections 2, 3 and 4 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 that he will, before any work is begun on the residential pool or spa:
(1) Examine any document of the building department of the county in which the pool or spa will be constructed that indicates whether the proposed project is located within an area that has been designated by the building department as a special geotechnical consideration area based on the properties of the soil in the area; and
(2) If the proposed project is located within such an area, take such actions as are necessary to ensure that:
(I) A professional engineer who is licensed pursuant to chapter 625 of NRS conducts an analysis of the soil at the site of the proposed project to ascertain the properties of the soil and to determine whether the soil is suitable for such construction; and
(II) The structural design of the proposed project is suitable for the properties of the soil at the site of the proposed construction.
(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 and supplier, if any, prompt and full payment upon completion of each stage or phase of construction for the contracted amount for or fair market value of materials or services rendered by the subcontractor or supplier. Before requesting payment for the next stage or phase of construction, the contractor shall deliver to the owner an affidavit signed by the subcontractor or supplier which states that full payment has been made for the previous stage or phase of construction. In any action commenced by a subcontractor or supplier to enforce a lien pursuant to chapter 108 of NRS, such an affidavit constitutes a rebuttable presumption of full payment to the subcontractor or supplier for the contracted amount for or fair market value of materials or services rendered by the subcontractor or supplier for that stage or phase of construction.
(d) Any other provision required by regulation of 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 supplier; 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 $1,000 or 10 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, steel, plumbing, gas, electricity, concrete, gunite, shotcrete, tile, plaster, the deck, or pool or spa equipment or accessories, except for the cash deposit or down payment authorized by subsection 1, to receive or establish a schedule of payments that provides for the contractor to receive payments at any time or in any amount other than:
(a) Upon completion of the excavation and installation of the steel and plumbing, not more than 30 percent of the total contract price that is outstanding after the cash deposit or down payment.
(b) Upon completion of the installation of the gunite or shotcrete, not more than 20 percent of the total contract price that is outstanding after the cash deposit or down payment.
(c) Upon completion of the installation of the deck, tile, gas and electricity, not more than 30 percent of the total contract price that is outstanding after the cash deposit or down payment.
(d) Upon completion of the plastering and the final inspection by the local building department, the remaining balance of the contract price.
3. To commence construction without a building permit. If the site of the proposed project is located within an area that has been designated as a special geotechnical consideration area as described in section 3 of this act, the application for a building permit must include, without limitation, an analysis of the soil at the site of the proposed project conducted by a professional engineer who is licensed pursuant to chapter 625 of NRS as required pursuant to section 3 of this act and a document which sets forth the proposed structural design of the project.
Sec. 5 The amendatory provisions of this act do not apply to offenses that are committed before the effective date of this act.
Sec. 6 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.
Sec. This act becomes effective upon passage and approval.