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All,
On September 27th, 2023, the Nevada State Contractors Board (NSCB) held an industry workshop to talk through questions as it relates to a new law (AB 39), which went into effect October 1st. As you may be aware, from our previous industry notice or our End of Session Report, SNHBA supported this legislation as an additional tool to protect the Residential Recovery Fund and homeowners.
Initially, we want to highlight what AB 39 applies to and what it does not apply to. The construction of a new single-family residence from the ground up is exempt from AB 39. Any construction, remodeling, repair or improvement performed on an already completed single-family residence is subject to AB 39.
For projects covered by AB 39, AB 39 provides enhanced contract requirements and consumer protections for residential contractors performing improvement or repair work on single-family residences. The amount of money a contractor can take up front can’t exceed $1,000 or 10% of the aggregate contract price, whichever is less of any initial down payment or deposit before the start of work. If you want to avoid the $1,000 or 10% restriction, you can obtain a Consumer Protection bond of at least $100,000. A form to do this option is on the NSCB’s website, linked below. Note that this is a new and additional bond from your Surety Bond. Also note that if you have more than one license and you choose to obtain a Consumer Protection bond, you will need to get one for each license you hold.
Please see below important information discussed at the NSCB workshop that may help you and your company better navigate compliance with all contract requirements found in NRS 624:
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Same day work/emergency work and/or maintenance work is exempt. Should an emergency repair occur, you can collect up to 100% of the contract cost at time of homeowner signature.
- Your subcontractors will need to have their own Consumer Protection bonds, even if you are paying the sub.
- A Consumer Protection bond does not affect your contractor license limit, nor does it affect the Residential Recovery Fund.
- Details as far as your existing contract we encourage you to work with your attorneys based on the type of work you do.
The webinar was recorded. You can find a copy of the slides and the recording of the presentation HERE.
Similarly, the following additional resources are linked below:
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A copy of industry bulletin with high-level details of the bill can be found here.
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The residential Improvements homepage can be found here.
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The Bond Requirements homepage can be found here.
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The Residential Improvement Bond Form can be found here.
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To view the Contract Checklist for home improvement checklist, click here.
Below is a list of SNHBA members that may be helpful to working with you on this:
The Southern Nevada Home Builders Association and the Nevada State Contractors Board do not provide legal advice on adherence to the new contract terms. Any questions should be directed to the legal counsel of the contractor.
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