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SOUTHERN NEVADA HOMEBUILDERS, SUBCONTRACTORS UNITE
TO ADDRESS CONSTRUCTION LITIGATION EPIDEMIC

Responding to the ongoing epidemic of excessive and costly construction litigation, a coalition of homebuilders, contractors and subcontractors held its first general meeting April 21 to discuss issues related to the non-availability and non-affordability of liability insurance and potential solutions that would improve the situation for both the building industry and homeowners.

Named the Coalition for Fairness in Construction, the group’s executive committee includes the Associated Builders and Contractors-Southern Nevada, Associated General Contractors, Nevada Subcontractors Association, and the Southern Nevada Home Builders Association.

The meeting also brought together groups representing plumbers, architects, landscapers, roofing contractors, floor coverers, general contractors, independent insurance agents, Realtors, glaziers, mortgage brokers, title companies, and banks.

"Southern Nevada’s construction industry partners believe a common-sense approach to conflict resolution will decelerate the number of lawsuits brought against builders, and, in turn, bring the insurance crisis under control and restore affordability for homebuyers," said Steve Hill, chairman of the Coalition for Fairness in Construction. "At the same time, the industry will take this opportunity to look in the mirror and examine what it needs to do to improve customer satisfaction."

However, Hill also noted that last September, an independent study conducted by J.D. Power and Associates found that metropolitan Las Vegas ranked second in overall new homebuyer satisfaction among 10 cities surveyed in its "2001 New-Home Builder Customer Satisfaction Study."

The meeting united the construction community to address the liability insurance crisis facing southern Nevada homebuilders and subcontractors. The result of a growing number of construction lawsuits, the crisis is forcing major insurance carriers to withdraw from the market and is contributing to increased housing costs, pricing many first-time homebuyers out of the housing market.

Additionally, the Coalition is seeking help from state lawmakers to restore fair and equitable problem-resolution mechanisms for homeowners and builders to prevent costly and lengthy litigation. This "right to repair" deficiencies and problems in housing construction would enable homebuilders and contractors to address issues directly before lawsuits prevent contact with homeowners and access to homes to make needed repairs.

In addition, the Coalition is asking legislators to develop a "fair definition of construction defect" to help stem the flow of unwarranted lawsuits. Providing a fair definition of what constitutes an actual defect, in conjunction with the "right to repair," will allow homeowners to receive prompt repairs to their homes without becoming mired in a lengthy lawsuit.

The Coalition is undertaking a broad outreach program aimed at building partnerships among the construction trade and related industry segments. As the Coalition grows, it will issue frequent updates pertaining to its members, objectives, plans, and legislative positions.


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