Home builders introduce construction defects bill

A coalition of home builders, bankers and subcontractors put their plan for dealing with construction defects before the Nevada Senate Thursday.

Spokesman Steve Hill said the idea behind SB241 is to get problems with homes fixed while keeping the issue out of the courts.

"We're not taking away homeowner rights," he said. "We're not capping awards. It's not a draconian solution."

He said what it will hopefully do is make it possible for builders to get liability insurance again. Lobbyist Sam McMullen said many builders are no longer doing business in Nevada because they can no longer get insurance.

"Getting insurance has become a critical issue for us," he said.

Lobbyist Jim Wadhams said the lawsuits are the result of a mistake on the part of builders and lawmakers two years ago, which basically forces homeowners to file a lawsuit in order to deal with a construction defects issue involving more than one unit of a project.

That law, he said, "means that in complex cases, you start the process with a lawsuit."

"And that's why we have over 200 lawsuits in Clark County," Wadhams said.

The bill would instead encourage the homeowner and builder to get together and get the problem fixed. It would provide a mediator through the state Contractor's Board to try resolve any disputes.

Hill said this gives the builder the right to fix the problem before being hit with a lawsuit. He said too many times, builders in a development are brought into a lawsuit by a lawyer before they even contact the builder to see if they'll fix the problem.

"You asked why can't you just call and get it fixed," Wadhams said. "That's the kind of notion we want to get back to."

But they said if that doesn't work, the homeowner still has the right to sue and there is no cap on damages a jury can award.

"We as builders are here to tell you that not every builder with a pickup truck, a dog and a cell phone is a stand up guy," said Rick DeMar of the Builders Association of Western Nevada.