- Senate Bill No. 458-Senator Porter
June 11, 1997
____________
Referred to Committee on Commerce and Labor
- SUMMARY--Revises provisions governing contractors and liens. (BDR 54-501)
- 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 construction; requiring contractors to provide certain notices; providing a penalty for making a false statement in recording a lien under certain circumstances; increasing the amount of certain bonds; limiting persons who may file certain liens on residential property; shortening the period for filing certain liens; making various other changes concerning contractors and liens; authorizing the creation of an advisory committee to study fraud among contractors; 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 and 3 of this act.
Sec. 2 A general contractor shall provide in writing to the owner of a residence with whom he has contracted:
1. The name, license number, business address and telephone number of:
(a) All subcontractors with whom he has contracted on the project; and
(b) All persons who furnish material of the value of $250 or more to be used in the project.
2. A notice that a person described in subsection 1 may record a notice of lien upon the residence of the owner and any building, structure and improvement thereon pursuant to the provisions of NRS 108.226.
3. A form and brochure which meet the requirements set forth in regulations adopted by the board and explain the law regarding:
(a) Contractors pursuant to chapter 624 of NRS; and
(b) Mechanics' and materialmen's liens pursuant to chapter 108 of NRS.
Sec. 3 1. The board may create an advisory committee to study fraud among contractors in this state.
2. The board shall appoint to the advisory committee, if created, homeowners, contractors and other persons experienced in construction.
3. The advisory committee, if created, shall:
(a) Meet at least once every 3 months at a time and place designated by the board.
(b) Maintain and make known a telephone number for members of the public to call to obtain information and advice about fraud in construction.
(c) Carry out a program to inform the public about fraud in construction.
(d) Research and review current policies concerning fraud among contractors to develop specific recommendations for any legislation necessary to reduce the occurrence of fraud among contractors.
Sec. 4 NRS 624.215 is hereby amended to read as follows:
624.215 1. For the purpose of classification, the contracting business includes any or all of the following branches:
(a) General engineering contracting.
(b) General building contracting.
(c) Specialty contracting.
General engineering contracting and general building contracting are mutually exclusive branches.
2. A general engineering contractor is a contractor whose principal contracting business is in connection with fixed works, including irrigation, drainage, water supply, water power, flood control, harbors, railroads, highways, tunnels, airports and airways, sewers and sewage disposal systems, bridges, inland waterways, pipelines for transmission of petroleum and other liquid or gaseous substances, refineries, chemical plants and industrial plants requiring a specialized engineering knowledge and skill, power plants, piers and foundations and structures or work incidental thereto.
3. A general building contractor is a contractor whose principal contracting business is in connection with [any structures built, being built, or to be built,] the construction or remodeling of buildings for the support, shelter and enclosure of persons, animals, chattels or movable property of any kind, requiring in [its] their construction the use of more than two unrelated building trades or crafts, [or to do or superintend the whole or any part thereof.] upon which he is the prime contractor and where the construction or remodeling of a building is the primary purpose. Unless he holds the appropriate specialty license, a general building contractor may only contract to perform specialty contracting if he is a prime contractor on a project. A general building contractor shall not perform specialty contracting in plumbing, electrical, refrigeration and air conditioning or fire protection without a license for the specialty.
4. A specialty contractor is a contractor whose operations as such are the performance of construction work requiring special skill and whose principal contracting business involves the use of specialized building trades or crafts.
5. [Nothing in this section prevents] This section does not prevent the board from establishing, broadening, limiting or otherwise effectuating classifications in a manner consistent with established custom , usage and procedure found in the [construction business.] building trades. The board is specifically prohibited from establishing classifications in such a manner as to determine or limit craft jurisdictions.
Sec. 5 NRS 624.270 is hereby amended to read as follows:
624.270 1. Before issuing a contractor's license to any applicant, the board shall require that the applicant:
(a) File with the board a surety bond in a form acceptable to the board executed by the contractor as principal with a corporation authorized to transact surety business in the State of Nevada as surety; or
(b) In lieu of such a bond, establish with the board a cash deposit as provided in this section.
2. Before granting renewal of a contractor's license to any applicant, the board shall require that the applicant file with the board satisfactory evidence that his surety bond or cash deposit is in full force, unless the applicant has been relieved of the requirement as provided in this section.
3. Failure of an applicant or licensee to file or maintain in full force the required bond or to establish the required cash deposit constitutes cause for the board to deny, revoke, suspend or refuse to renew a license.
4. The amount of each bond or cash deposit required by this section must be fixed by the board with reference to the contractor's financial and professional responsibility and the magnitude of his operations, but must be not less than $1,000 or more than [$50,000.] $100,000. The bond must be continuous in form and must be conditioned that the total aggregate liability of the surety for all claims is limited to the face amount of the bond irrespective of the number of years the bond is in force. The board may increase or reduce the amount of any bond or cash deposit if evidence supporting such a change in the amount is presented to the board at the time application is made for renewal of a license or at any hearing conducted pursuant to NRS 624.310. Unless released earlier pursuant to subsection 5, any cash deposit may be withdrawn 2 years after termination of the license in connection with which it was established, or 2 years after completion of all work authorized by the board after termination of the license, whichever occurs later, if there is no outstanding claim against it.
5. After a licensee has acted in the capacity of a licensed contractor in the State of Nevada for not less than 5 consecutive years, the board may relieve the licensee of the requirement of filing a bond or establishing a cash deposit if evidence supporting such relief is presented to the board, but the board may at any time thereafter require the licensee to file a new bond or establish a new cash deposit as provided in subsection 4 if evidence is presented to the board supporting this requirement. If a licensee is relieved of the requirement of establishing a cash deposit, the deposit may be withdrawn 2 years after such relief is granted, if there is no outstanding claim against it.
Sec. 6 NRS 624.283 is hereby amended to read as follows:
624.283 1. Each license issued under the provisions of this chapter expires 1 year after the date on which it is issued, except that the board may by regulation prescribe shorter or longer periods and prorated fees to establish a system of staggered renewals. Any license which is not renewed on or before the date for renewal is automatically suspended.
2. A license may be renewed by filing with the board an application for renewal and payment of the fee for renewal fixed by the board.
3. The board may require the licensee to submit at anytime a current financial statement that is prepared by a certified public accountant, if the board believes that:
(a) The licensee did not pay a subcontractor for an undisputed debt;
(b) The licensee has violated a provision of chapter 624 of NRS or a regulation adopted pursuant thereto; or
(c) The licensee's financial responsibility is impaired.
4. If a license is automatically suspended pursuant to subsection 1, the licensee may have his license reinstated upon filing an application for renewal within 6 months after the date of suspension and paying, in addition to the fee for renewal, a fee for reinstatement fixed by the board. A license which is not reinstated within 6 months after it is automatically suspended may be canceled by the board , and a new license may be issued only upon application for an original contractor's license.
Sec. 7 NRS 624.3016 is hereby amended to read as follows:
624.3016 The following acts [,] or omissions, among others, constitute cause for disciplinary action under NRS 624.300:
1. Any willful, fraudulent or deceitful act of a contractor whereby substantial injury is sustained by another.
2. A conviction of a felony or a crime involving moral turpitude.
3. Knowingly making a false statement in or relating to the recording of a notice of lien pursuant to the provisions of NRS 108.226.
4. Failure to give a notice required by NRS 108.245 or 108.246.
Sec. 8 NRS 624.3017 is hereby amended to read as follows:
624.3017 The following acts, among others, constitute cause for disciplinary action under NRS 624.300:
1. Workmanship which is not commensurate with standards of the trade in general or which is below the standards in the building or construction codes adopted by the city or county in which the work is performed. If no applicable building or construction code has been adopted locally, then workmanship must meet the standards prescribed in the Uniform Building Code, Uniform Plumbing Code or National Electrical Code in the form of the code most recently published before January 1, [1987.] 1997.
2. Advertising projects of construction without including in the advertisements the name and license number of the licensed contractor who is responsible for the construction.
Sec. 9 NRS 108.222 is hereby amended to read as follows:
108.2221. [Every] Except as otherwise provided in subsection 2, a person who performs labor upon or furnishes material of the value of [$50] $250 or more, to be used in the construction, alteration or repair of any building, or other superstructure, railway, tramway, toll road, canal, water ditch, flume, aqueduct or reservoir, bridge, fence or any other structure , has a lien upon the premises and any building, structure and improvement thereon for:
(a) If the parties entered into a contract, the unpaid balance of the price agreed upon for; or
(b) In absence of a contract, an amount equal to the fair market value
of,
the labor performed or material furnished or rented, as the case may be, by each respectively, including a reasonable allowance for overhead and a profit, whether performed or furnished at the instance of the owner of the building or other improvement, or at the instance of his agent.
2. If a license is required for the work, only a contractor licensed pursuant to chapter 624 of NRS, an employee of such a contractor or a person who furnishes material to be used in the project may have a lien as described in subsection 1 upon the premises of a residence that is maintained for the use and occupancy of the owner and any building, structure or improvement thereon.
3. All miners, laborers and others who perform labor to the amount of [$50] $250 or more in or upon any mine, or upon any shaft, tunnel, adit or other excavation, designed or used to prospect, drain or work the mine, and all persons who furnish any timber or other material, of the value of [$50] $250 or more, to be used in or about a mine, whether performed or furnished at the instance of the owner of the mine or his agent, have, and may each respectively claim and hold, a lien upon that mine for:
(a) If the parties entered into a contract, the unpaid balance of the price agreed upon for; or
(b) In absence of a contract, an amount equal to the fair market value
of,
the labor so performed or material furnished, including a reasonable allowance for overhead and a profit.
[3.] 4. Every contractor, subcontractor, engineer, land surveyor, geologist, architect, builder or other person having charge or control of any mining claim, or any part thereof, or of the construction, alteration or repair, either in whole or in part, of any building or other improvement, as these terms are used in subsection 1, shall be held to be the agent of the owner, for the purposes of NRS 108.221 to 108.246, inclusive.
Sec. 10 NRS 108.226 is hereby amended to read as follows:
108.2261. Every person claiming the benefit of NRS 108.221 to 108.246, inclusive, must record his notice of lien in the form provided in subsection 5:
(a) Within [90] 60 days after the completion of the work of improvement;
(b) Within [90] 60 days after the last delivery of material by the lien claimant; or
(c) Within [90] 60 days after the last performance of labor by the lien claimant,
whichever is later.
2. The time within which to perfect the lien by recording the notice of lien is shortened if a notice of completion is recorded in a timely manner pursuant to NRS 108.228, in which event the notice of lien must be recorded within [40] 30 days after the recording of the notice of completion.
3. Any one of the following acts or events is equivalent to "completion of the work of improvement" for all purposes of NRS 108.221 to 108.246, inclusive:
(a) The occupation or use of a building, improvement or structure by the owner, his agent or his representative and accompanied by cessation of labor thereon.
(b) The acceptance by the owner, his agent or his representative of the building, improvement or structure.
(c) The cessation from labor for 30 days upon any building, improvement or structure, or the alteration, addition to or repair thereof.
(d) The recording of the notice of completion provided in NRS 108.228.
4. For the purposes of this section, if a work of improvement consists of the construction of more than one separate building and each building is constructed pursuant to:
(a) A separate contract, each building shall be deemed a separate work of improvement. The time within which to perfect the lien by recording the notice of lien pursuant to subsection 1 commences to run upon the completion of each separate building; or
(b) A single contract, the time within which to perfect the lien by recording the notice of lien pursuant to subsection 1 commences to run upon the completion of all the buildings constructed pursuant to that contract.
As used in this subsection, "separate building" means one structure of a work of improvement and any garages or other outbuildings appurtenant thereto.
5. The notice of mechanic's lien must be recorded in the office of the county recorder of the county where the property or some part thereof is situated and must contain:
(a) A statement of his demand after deducting all just credits and offsets.
(b) The name of the owner or reputed owner if known.
(c) The name of the person by whom he was employed or to whom he furnished the material.
(d) A statement of the terms, time given and conditions of his contract.
(e) A description of the property to be charged with the lien sufficient for identification.
6. The claim must be verified by the oath of the claimant or some other person. The claim need not be acknowledged to be recorded.
7. It is unlawful for a person knowingly to make a false statement in or relating to the recording of a notice of lien pursuant to the provisions of this section. A person who violates this subsection is guilty of a gross misdemeanor and shall be punished by a fine of not less than $5,000 nor more than $10,000.
Sec. 11 NRS 108.2275 is hereby amended to read as follows:
108.2275 1. The debtor of the lien claimant or a party in interest in the premises subject to the lien who believes the notice of lien is frivolous and was made without reasonable cause, or that the amount of the lien is excessive, may apply by motion to the district court for the county where the property or some part thereof is situated for an order directing the lien claimant to appear before the court to show cause why the relief requested should not be granted. The motion must set forth the grounds upon which relief is requested and must be supported by the affidavit of the applicant or his attorney setting forth a concise statement of the facts upon which the motion is based. If the court issues an order for a hearing, the applicant shall serve notice of the application and order of the court on the lien claimant within 3 days after the court issues the order. The court shall conduct the hearing within not less than 10 days or more than 20 days after the court issues the order.
2. The order for a hearing must include a statement that if the lien claimant fails to appear at the time and place noted, the lien will be released with prejudice and the lien claimant will be ordered to pay the costs requested by the applicant, including reasonable attorney's fees.
3. If, at the time the application is filed, an action to foreclose the lien has not been filed, the clerk of the court shall assign a number to the application and obtain from the applicant a filing fee of $85. If an action has been filed to foreclose the lien before the application was filed pursuant to this section, the application must be made a part of the action to foreclose the lien.
4. If, after a hearing on the matter, the court determines that:
(a) The lien is frivolous and was made without reasonable cause, the court may [issue] make an order releasing the lien and awarding costs and reasonable attorney's fees to the applicant.
(b) The amount of the lien is excessive, the court may [issue] make an order reducing the lien to an amount deemed appropriate by the court and awarding costs and reasonable attorney's fees to the applicant.
(c) The lien is not frivolous and was made with reasonable cause and that the amount of the lien is not excessive, the court may [issue] make an order awarding costs and reasonable attorney's fees to the lien claimant.
5. Proceedings conducted pursuant to this section do not affect any other rights and remedies otherwise available to the parties.
6. An appeal may be taken by either party from an order made pursuant to subsection 4. The order may not be entered until the time for filing a notice of appeal has expired or, if a notice of appeal is filed, until the appellate court has disposed of the appeal.
7. If an order releasing or reducing a lien is entered by the court, the lien claimant shall:
(a) Within 2 days after the order is entered, record a certified copy of the order in the office of the county recorder of the county where the property or some part thereof is situated. The recording of a certified copy of the order releasing or reducing a lien is notice to any interested party that the lien has been released or reduced.
(b) Within 10 days after the order is entered, if he is a licensed contractor, give a written notice of the release or reduction to the state contractors' board.
Sec. 12 NRS 108.239 is hereby amended to read as follows:
108.239 1. Liens may be enforced by an action in any court of competent jurisdiction, on setting out in the complaint the particulars of the demand, with a description of the premises to be charged with the lien.
2. At the time of filing the complaint and issuing the summons, the plaintiff shall:
(a) File a notice of pendency of the action in the manner provided in NRS 14.010; and
(b) Cause a notice to be published at least once a week for 3 successive weeks, in one newspaper published in the county, and if there is no newspaper published in the county, then in such mode as the court may determine, notifying all persons holding or claiming liens pursuant to the provisions of NRS 108.221 to 108.246, inclusive, on the premises to file with the clerk and serve on the plaintiff and also on the defendant, if the defendant is within the state or is represented by counsel, written statements of the facts constituting their liens, together with the dates and amounts thereof. The statements must be filed within 10 days after the last publication of the notice. The plaintiff and other parties adversely interested must be allowed 5 days to answer the statements.
3. If it appears from the records of the county recorder that there are other lien claims recorded against the same premises at the time of the commencement of the action, the plaintiff shall, in addition to and after the initial publication of the notice as provided in paragraph (b) of subsection 2, mail to those other lien claimants, by registered or certified mail, or deliver in person a copy of the notice as published.
4. At the time of any change in the venue of the action, the plaintiff shall file a notice of pendency of the action, in the manner provided in NRS 14.010, and include in the notice the court and county to which the action is changed.
5. The court shall enter judgment according to the right of the parties, and shall, by decree, proceed to hear and determine the claims in a summary way, or may, if it be the district court, refer the claims to a master to ascertain and report upon the liens and the amount justly due thereon. No consequential damages may be recovered in an action pursuant to this section. If a claim is denied or reduced, the claimant, if he is a licensed contractor, shall give a written notice of the denial or reduction to the state contractors' board. All liens not so exhibited shall be deemed to be waived in favor of those which are so exhibited.
6. On ascertaining the whole amount of the liens with which the premises are justly chargeable, as provided in NRS 108.221 to 108.246, inclusive, the court shall cause the premises to be sold in satisfaction of the liens and costs, including costs of suit, and any party in whose favor judgment may be rendered may cause the premises to be sold within the time and in the manner provided for sales on execution, issued out of any district court, for the sale of real property.
7. If the proceeds of sale, after the payment of costs, are not sufficient to satisfy the whole amount of the liens included in the decree of sale, the proceeds must be apportioned according to the right of the several parties. If the proceeds of the sale amount to more than the sum of the liens and the cost of sale, the remainder must be paid over to the owner of the property.
8. Each party whose claim is not satisfied in the manner provided in this section is entitled to personal judgment for the residue against the party legally liable for it if that person has been personally summoned or has appeared in the action.
Sec. 13 NRS 108.245 is hereby amended to read as follows:
108.245 1. Except as otherwise provided in subsection 5, every person, firm, partnership, corporation or other legal entity, other than one who performs only labor, who claims the benefit of NRS 108.221 to 108.246, inclusive, shall, within 31 days after the first delivery of material or performance of work or services under his contract, deliver in person or by certified mail to the owner or reputed owner of the property or to the person whose name appears as owner on the building permit, if any, for the improvement a notice in substantially the following form:
Notice to Owner of Materials Supplied
or Work or Services Performed
To:
(Owner's name and address)
The undersigned notifies you that he has supplied materials or performed work or services as follows:
(General description of materials, work or services and
anticipated total value)
for improvement of real property identified as (property description or street address) under contract with (general contractor or subcontractor). This is not a notice that the undersigned has not been or does not expect to be paid, but a notice required by law that the undersigned may, at a future date, claim a lien as provided by law against the property if the undersigned is not paid.
(Claimant)
A subcontractor or materialman under a subcontract who gives such a notice must also deliver in person or send by certified mail a copy of the notice to the general contractor for information only. [Persistent] The failure by a subcontractor to deliver such notices to the general contractor is a ground for disciplinary proceedings against the subcontractor under chapter 624 of NRS.
2. Such a notice does not constitute a lien or give actual or constructive notice of a lien for any purpose.
3. No lien for materials furnished or for work or services performed, except labor, may be perfected or enforced pursuant to NRS 108.221 to 108.246, inclusive, unless the notice has been given.
4. The notice need not be verified, sworn to or acknowledged.
5. A general contractor or other person who contracts directly with an owner or sells materials directly to an owner is not required to give notice pursuant to this section.
6. As used in this section, "owner" does not include any person, firm or corporation whose only interest in the real property is under a mortgage, deed of trust or other security arrangement.
Sec. 14 NRS 108.246 is hereby amended to read as follows:
108.246 1. Each general contractor shall, [prior to] before execution of a [construction contract,] contract for construction, inform the record owner [, as defined in NRS 108.227,] with whom he intends to contract of the provisions of NRS 108.245 in substantially the following form:
To:
(Owner's name and address)
Section 108.245 of Nevada Revised Statutes, a part of the mechanics' lien law of the State of Nevada, requires, for your information and protection from hidden liens, that each person or other legal entity which supplies materials to or performs work or services on a construction project, other than one who performs only labor, shall deliver to the owner a notice of the materials supplied or the work or services performed. You may receive such notices in connection with the construction project which you propose to undertake.
2. Each general contractor shall deliver a copy of the information required by subsection 1 to each subcontractor who participates in the construction project.
3. [Persistent] The failure of a general contractor so to inform owners and subcontractors with whom he contracts is a ground for disciplinary proceedings under chapter 624 of NRS.
4. Each subcontractor who participates in the construction project shall deliver a copy of each notice required by NRS 108.226 to the general contractor. [Persistent] The failure of the subcontractor to deliver such notice to the general contractor is a ground for disciplinary proceedings under chapter 624 of NRS.
Sec. 15 Chapter 278 of NRS is hereby amended by adding thereto a new section to read as follows:
1. A building inspector who issues a permit to the owner of a residence to construct, alter, repair, add to, subtract from, improve, move, wreck or demolish the residence shall, at the same time, deliver to him a statement. The owner of the residence shall acknowledge in writing receipt of the statement.
2. The statement delivered by the building inspector must include the following text:
- State law requires construction to be done by licensed contractors. You have applied for a permit under an exemption to that law. The exemption allows you, as the owner of your property, to act as your own contractor with certain restrictions although you do not have a license.
- You must provide direct supervision of the construction, on the job, yourself. The building or residence must be for your own use or occupancy. It may not be built or substantially improved for sale or lease. If you sell or lease a building you have built or substantially improved yourself within 1 year after the construction is complete, the law will presume that you built or substantially improved it for sale or lease, which is a violation of this exemption and a violation of chapter 624 of NRS.
- You may not hire an unlicensed person to act as your contractor or to supervise people working on your building. It is your responsibility to make sure that people employed by you have the licenses required by state law and by county or municipal licensing ordinances. You may not delegate the responsibility for supervising work to a licensed contractor who is not licensed to perform the work being done. Any person working on your building who is not licensed must work under your direct supervision and must be employed by you, which means that you must deduct FICA and withholding tax and provide industrial insurance for that employee, as prescribed by law. Your construction must comply with all applicable laws, ordinances, building codes and zoning regulations.
Sec. 16 NRS 278.610 is hereby amended to read as follows:
278.6101. Except as otherwise provided in subsection 3, after the establishment of the position of building inspector and the filling of the position as provided in NRS 278.570, it is unlawful to erect, construct, reconstruct, alter or change the use of any building or other structure within the territory covered by the building code or zoning regulations without obtaining a building permit from the building inspector.
2. The building inspector shall not issue any permit unless the plans of and for the proposed erection, construction, reconstruction, alteration or use fully conform to all building code and zoning regulations then in effect.
3. The provisions of subsection 1 do not apply to a school district to which the state public works board has delegated its powers and duties under NRS 393.110.
4. A building inspector shall not issue a building permit to a person acting for another unless the applicant proves to the satisfaction of the building inspector that he is licensed as a contractor pursuant to the provisions of NRS 624.230 to 624.320, inclusive.
Sec. 17 Chapter 597 of NRS is hereby amended by adding thereto the provisions set forth as sections 18, 19 and 20 of this act.
Sec. 18 As used in this section and sections 19 and 20 of this act, "contractor" means a person licensed pursuant to the provisions of chapter 624 of NRS whose scope of work includes the construction, repair or maintenance of any residential swimming pool, hot tub or spa, regardless of use, including the repair or replacement of existing equipment or the installation of new equipment, as necessary. The scope of such work includes layout, excavation, operation of construction pumps for removal of water, steelwork, installation of illuminating niches, construction of floors, installation of gunite, fiberglass, tile and coping, installation of all perimeter and filter piping, installation of all filter equipment and chemical feeders of any type, plastering of the interior, construction of decks, installation of housing for pool equipment and installation of packaged pool heaters.
Sec. 19 1. A contractor who receives an initial payment of $200 or 2 percent of the aggregate contract price, whichever is less, for the repair, restoration, improvement or construction of a residential pool, hot tub or spa shall start the work within 30 days after the date all necessary permits for the work, if any, are issued, unless the person who made the payment agrees in writing to a longer period to apply for the necessary permits or start the work or to longer periods for both.
2. A contractor who receives money for the repair, restoration, addition, improvement or construction of residential real property in excess of the value of the work performed shall not fail or refuse to perform any work for any 30-day period.
3. An agreement or contract for the repair, restoration, improvement or construction of a residential pool, hot tub or spa must contain a written statement explaining the rights of the customer under this section, sections 18 and 20 of this act and other relevant statutes.
Sec. 20 1. A contract in an amount of more than $1,000 entered into between a contractor and the owner of a property to be improved must contain in writing at least the following information:
(a) The name of the contractor and his business address and license number;
(b) The name and mailing address of the owner and the address or legal description of the property;
(c) The date of execution of the contract;
(d) The estimated date of completion of all work to be performed under the contract;
(e) A description of the work to be performed under the contract;
(f) The total amount to be paid to the contractor by the owner for all work to be performed under the contract, including all applicable taxes;
(g) The amount of any advance deposit paid or promised to be paid to the contractor by the owner;
(h) A statement that the contractor will apply for and obtain the necessary permits;
(i) A statement that any additional work to be performed under the contract, whether or not pursuant to a change order, which will require the owner to pay additional money and any other change in the terms in the original contract must be agreed to in writing by the parties and incorporated into the original contract as a change order; and
(j) A plan and scale drawing showing the shape, size, dimensions and the specifications for the construction and equipment for a swimming pool and for other home improvements, and description of the work to be done, a description of the materials to be used, and the equipment to be used or installed, and the agreed consideration for the work.
2. At the time the owner signs the contract, the contractor shall furnish him a legible copy of all documents signed and a written and signed receipt for any money paid to the contractor by the owner. All written information provided in the contract must be printed in at least 10-point bold type.
3. A condition, stipulation or provision in a contract or other agreement that requires a person to waive any right provided by this section and sections 18 and 19 of this act or relieves a person of an obligation or liability imposed by those sections is void. Failure to comply with the requirements renders a contract unenforceable.
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