Existing law authorizes an owner of a residence or appurtenance and certain other persons to commence a civil action against a contractor, subcontractor, supplier or design professional for certain constructional defects in the residence or appurtenance. (NRS 40.610, 40.640, 40.645) Under existing law, before a claimant commences an action or amends a complaint to add a cause of action for a constructional defect, the claimant must give written notice to the contractor and the matter must be submitted to mediation unless mediation is waived in writing. (NRS 40.645) Existing law also requires a contractor, subcontractor, supplier or design professional who receives notice of a constructional defect to send a written response to the claimant within 90 days after receiving the notice. (NRS 40.6472) Section 3 of this bill: (1) requires the written response to state whether the contractor, subcontractor, supplier or design professional has elected to enter into mediation or waive mediation in writing; and (2) provides that failure to include such a statement shall be deemed a written waiver of the requirement to submit the matter to mediation. Section 3 also requires the written response to include certain additional information if the contractor, subcontractor, supplier or design professional has elected to repair the constructional defect. Section 8 of this bill revises provisions governing the mediation required by existing law by: (1) providing that such mediation must be waived in writing on or before the deadline for the submission of the written response required by section 3; and (2) removing language prohibiting the total fees for each day of mediation from exceeding $750. Existing law authorizes, but does not require, a contractor, subcontractor, supplier or design professional who receives written notice of a constructional defect to present the claim to an insurer. (NRS 40.649) Section 4 of this bill requires a contractor, subcontractor, supplier and design professional to: (1) maintain a policy of insurance which covers liability for constructional defects; and (2) present the claim to the insurer that issued the policy. Existing law establishes a procedure by which a claimant and a contractor, subcontractor, supplier or design professional may agree to have a judgment entered before the claimant commences a civil action for the constructional defect or amends a complaint to add a cause of action for the constructional defect. (NRS 40.652) Sections 5 and 10 of this bill revise this procedure and eliminate certain penalties for the rejection of a settlement offer for consistency with Rule 68 of the Nevada Rules of Civil Procedure and certain other provisions of existing law relating to settlement offers. Sections 6 and 7 of this bill make conforming changes by removing references to the provision repealed by section 10 and certain related language. Section 6 also clarifies that any interest recoverable as damages in a cause of action for a constructional defect must be provided by statute for damages otherwise recoverable by the claimant. (NRS 40.655) Sections 1 and 2 of this bill revise the definitions of certain terms applicable to actions resulting from constructional defects.

Statutes affected:
As Introduced: 40.615, 40.630, 40.6472, 40.649, 40.652, 40.655, 40.665, 40.680, 40.650
BDR: 40.615, 40.630, 40.6472, 40.649, 40.652, 40.655, 40.665, 40.680, 40.650