Recovery
Fund At $1 Million
Contractors Must Notify Customers Or Face Fines
(hit
link to read the above)
Questions And Answers
About
The Residential Construction Recovery Fund
According to the Nevada State Contractors Board, the Residential Construction Recovery Fund was established by the 1999 session of the Nevada Legislature.
UPDATE 4-01-01
Contractor's Board executive director Margi Grein testified before the Senate Commerce & Labor Committee on the recovery fund April 5, 2001. Grein remarked that the board began collecting money in 1999 as directed, and that currently more than $1 million has been collected from license fees.
Grein said that the board will be unable to complete regulations on the fund until July 2001, and has concerns with some of the language in the original bill. Consumers will be allowed, by law, to seek recovery from this fund for construction defect matters. One concern is whether or not claims should go back to the beginning of 2001 or begin July 1, 2001.
As of October 1, 1999, each residential contractor is required to pay an assessment when they receive their contractor’s license, or upon its renewal.
The following are answers to some commonly asked questions regarding the fund and how it may affect your firm (the entire law may be found in Nevada Revised Statutes, Chapter 624.400 - 560).
What Is The Recovery Fund?
The Recovery Fund offers protection for Nevada homeowners who contract with licensed contractors and, under certain conditions, are harmed by the failure of that contractor to properly perform qualified services.
When Can Homeowners Start Submitting Claims?
Complaints or claims by Nevada homeowners seeking recovery from the fund may be filed with the Board on or after July 1, 2001.
Where Do Fund Monies Come From?
Residential contractors must pay an annual assessment to the State Contractors Board based on the monetary license limit.
How Much Will It Cost?
$100 each year if the license limit is not more than $1 million.
$250 each year if the license limit is more than $1 million but limited.
$500 each year if the license is unlimited.
How Is Residential Contractor Defined?
The statute defines a residential contractor as one who is licensed pursuant to the statute and who contracts with the owner of a single-family residence to perform qualified services.
What Does ‘Qualified Services’ mean?
The statute defines qualified services as any construction, remodeling, repair or improvement performed by a residential contractor on a single-family residence occupied by the owner of that residence.
What If I Don’t Perform Residential Construction?
A licensee who does not perform qualified services as defined by the statute must submit a completed Certificate of Exemption.
For additional information, you may call the Nevada State Contractors Board at (702) 486-1100 or hit this link.
Call (702) 615-7644