Recovery Fund At $1 Million Contractors Must Notify Customers Or Face Fines by Joe Wheeler The Nevada State Contractors Board held a regulatory hearing July 11 on the Residential Construction Recovery Fund. The fund was created during the 1999 Nevada Legislative Session and has been funded by increased contractor’s license fees since October of that year. Homeowners who have been "damaged by the failure of a residential contractor to perform qualified services adequately" may seek relief from the fund up to a maximum of $250,000 per contractor. Claimants are allowed to seek relief as of July 1, 2001. Homeowners have four years to file a claim. Currently, there is approximately $1 million in the fund. Contractors who perform residential construction must notify their customers about the fund in writing using language proscribed by the board or face administrative fines of not more than $100 for the first violation and $250 for a second or subsequent violation. The language must be "substantially" as written by the board, and be included in any agreement or contract for qualified services. "Qualified services" is any "construction, remodeling, repair or improvement performed by a residential contractor on a single-family residence occupied by the owner of the residence." A "residential contractor" is any licensed contractor who contracts with the owner of a single-family residence to perform qualified services.   Contractor Disclosure: Language To Be Included In Agreements Or Contracts: The Residential Construction Recovery Fund Payment may be available from the recovery fund if you are damaged financially by a project performed on your residence pursuant to a contract, including construction, remodeling, repair or other improvements, and the damage resulted from certain specified violations of Nevada law by a contractor licensed in this state.  To obtain information relating to the recovery fund and filing a claim for recovery from the recovery fund, you may contact the State Contractor’s Board at the following locations:

State Contractor's Board 9670 Gateway Drive, Suite 100 Reno, NV 89509-8953 (775) 688-1141

State Contractor's Board 4220 S. Maryland Parkway, Suite 800D Las Vegas, NV 89119-7533 (702) 486-1100

Questions And Answers About  The Residential Construction Recovery Fund

From The Construction Zone August 2001

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