requires two-thirds majority vote (§ 3,  4)                                              

                                                                                                  

 

Assembly Bill No. 498–Assemblyman Manendo (by request)

 

March 19, 2001

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Makes various changes to provisions governing construction of residential dwellings and actions for constructional deficiencies and defects. (BDR 22‑926)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to real property; requiring certain inspections to be made by professional engineers before building permits and certificates of occupancy may be issued for certain residential dwellings; revising the provisions governing the periods of limitation and repose for certain actions involving constructional deficiencies; revising the provisions governing damages in certain actions involving constructional defects; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. Chapter 278 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2, 3 and 4 of this act.

1-3    Sec. 2.  1.  No certificate of occupancy for a residential dwelling

1-4  within a subdivision may be issued by a city or county building

1-5  department unless there has been filed with the building department a

1-6  certification that the finish grading of the lot on which the dwelling is

1-7  situated, including the drainage swales and drainage inlets for the lot, is

1-8  consistent with the approved plans for the construction of the dwelling.

1-9    2.  The certification required by subsection 1 must be issued by a

1-10  professional engineer who:

1-11    (a) Is licensed pursuant to chapter 625 of NRS;

1-12    (b) Is qualified to practice as a civil engineer; and

1-13    (c) Carries professional liability insurance of not less than $1,000,000.

1-14    Sec. 3.  1.  No building permit for the construction of a residential

1-15  dwelling within a subdivision may be issued by a city or county building

1-16  department unless a professional engineer who is licensed pursuant to

1-17  chapter 625 of NRS and is qualified to practice as a geotechnical

1-18  engineer has approved the recommendations for soil preparation and

1-19  foundation design set forth in the soil report prepared for the subdivision

2-1  in which the real property on which the residential dwelling will be

2-2  constructed is located.

2-3    2.  The professional engineer must be selected by the city or county

2-4  building department and his fee must be paid by the developer of the

2-5  subdivision as part of the application for a grading permit.

2-6    3.  The professional engineer may require additional analyses of soil

2-7  samples and more stringent standards for foundation design than those

2-8  specified by the engineer of the developer.

2-9    Sec. 4.  1.  No building permit for the construction of a residential

2-10  dwelling within a subdivision may be issued by a city or county building

2-11  department unless a professional engineer who is licensed pursuant to

2-12  chapter 625 of NRS and is qualified to practice as a structural engineer

2-13  certifies the structural design of the residential dwelling.

2-14    2.  No certificate of occupancy for a residential dwelling within a

2-15  subdivision may be issued by a city or county building department unless

2-16  all the major structural components of the residential dwelling have been

2-17  reviewed and approved by a professional engineer who is licensed

2-18  pursuant to chapter 625 of NRS and is qualified to practice as a

2-19  structural engineer.

2-20    3.  The professional engineer must be selected by the city or county

2-21  building department and his fee must be paid by the developer of the

2-22  subdivision as part of the application for the building permit.

2-23    4.  As used in this section, “major structural components” includes,

2-24  without limitation:

2-25    (a) The foundation, including the placement of reinforcing steel and

2-26  post-tension reinforcing rods, the dimensions of footings and other

2-27  components of the foundation, and the compressive strength of the

2-28  concrete used to pour the foundation;

2-29    (b) The installation of shear walls, including the use of anchor bolts

2-30  and hold-downs, and the nailing of panels; and

2-31    (c) The installation of roof trusses, including the attachment of the

2-32  trusses to other parts of the frame of the building.

2-33    Sec. 5.  NRS 278.010 is hereby amended to read as follows:

2-34    278.010  As used in NRS 278.010 to 278.630, inclusive, and sections

2-35  2, 3 and 4 of this act, unless the context otherwise requires, the words and

2-36  terms defined in NRS 278.0105 to 278.0195, inclusive, have the meanings

2-37  ascribed to them in those sections.

2-38    Sec. 6.  NRS 11.202 is hereby amended to read as follows:

2-39    11.202  1.  An action may be commenced against the owner, occupier

2-40  or any person performing or furnishing the design, planning, supervision or

2-41  observation of the construction[,] of, or performing or furnishing the

2-42  construction of , an improvement to real property at any time after the

2-43  substantial completion of [such an] the improvement, for the recovery of

2-44  damages for:

2-45    (a) Any deficiency in the design, planning, supervision or observation

2-46  of the construction of, or in the construction of [such an] , the

2-47  improvement which is the result of his willful misconduct or which he

2-48  fraudulently concealed;

3-1    (b) Injury to real or personal property caused by [any such] the

3-2  deficiency; or

3-3    (c) Injury to or the wrongful death of a person caused by [any such] the

3-4  deficiency.

3-5    2.  The provisions of this section do not apply in an action brought

3-6  against:

3-7    (a) The owner or keeper of any hotel, inn, motel, motor court,

3-8  boardinghouse or lodginghouse in this state on account of his liability as an

3-9  innkeeper.

3-10    (b) Any person on account of a defect in a product.

3-11    Sec. 7.  NRS 11.203 is hereby amended to read as follows:

3-12    11.203  1.  Except as otherwise provided in this section and NRS

3-13  [11.202 and] 11.206, no action may be commenced against the owner,

3-14  occupier or any person performing or furnishing the design, planning,

3-15  supervision or observation of the construction[,] of, or performing or

3-16  furnishing the construction of , an improvement to real property more than

3-17  10 years after the substantial completion of [such an] the improvement, for

3-18  the recovery of damages for:

3-19    (a) Any deficiency in the design, planning, supervision or observation

3-20  of the construction of, or in the construction of [such an] , the

3-21  improvement which is known or through the use of reasonable diligence

3-22  should have been known to him;

3-23    (b) Injury to real or personal property caused by [any such] the

3-24  deficiency; or

3-25    (c) Injury to or the wrongful death of a person caused by [any such] the

3-26  deficiency.

3-27    2.  [Notwithstanding the provisions of NRS 11.190 and subsection 1 of

3-28  this section, if] If an injury occurs in the 10th year after the substantial

3-29  completion of [such an] the improvement, an action for damages for injury

3-30  to property or person, damages for wrongful death resulting from [such]

3-31  the injury or damages for breach of contract may be commenced within 2

3-32  years after the date of [such] the injury, irrespective of the date of death,

3-33  but in no event may an action be commenced more than 12 years after the

3-34  substantial completion of the improvement.

3-35    3.  If the provisions of this section apply to an action:

3-36    (a) The action is subject only to the period of repose set forth in this

3-37  section; and

3-38    (b) No other period of limitation or repose set forth in this chapter

3-39  applies to the action.

3-40    4.  The provisions of this section do not apply to [a] :

3-41    (a) An action that is based upon any deficiency described in

3-42  subsection 1 if the provisions of NRS 11.202 otherwise apply to the

3-43  deficiency; or

3-44    (b) A claim for indemnity or contribution.

3-45    Sec. 8.  NRS 11.204 is hereby amended to read as follows:

3-46    11.204  1.  Except as otherwise provided in this section and NRS

3-47  [11.202, 11.203 and] 11.206, no action may be commenced against the

3-48  owner, occupier or any person performing or furnishing the design,

3-49  planning, supervision or observation of the construction[,] of, or

4-1  performing or furnishing the construction[,] of , an improvement to real

4-2  property more than 8 years after the substantial completion of [such an] the

4-3  improvement, for the recovery of damages for:

4-4    (a) Any latent deficiency in the design, planning, supervision or

4-5  observation of the construction of, or in the construction of [such an] , the

4-6  improvement;

4-7    (b) Injury to real or personal property caused by [any such] the

4-8  deficiency; or

4-9    (c) Injury to or the wrongful death of a person caused by [any such] the

4-10  deficiency.

4-11    2.  [Notwithstanding the provisions of NRS 11.190 and subsection 1 of

4-12  this section, if] If an injury occurs in the eighth year after the substantial

4-13  completion of [such an] the improvement, an action for damages for injury

4-14  to property or person, damages for wrongful death resulting from [such]

4-15  the injury or damages for breach of contract may be commenced within 2

4-16  years after the date of [such] the injury, irrespective of the date of death,

4-17  but in no event may an action be commenced more than 10 years after the

4-18  substantial completion of the improvement.

4-19    3.  If the provisions of this section apply to an action:

4-20    (a) The action is subject only to the period of repose set forth in this

4-21  section; and

4-22    (b) No other period of limitation or repose set forth in this chapter

4-23  applies to the action.

4-24    4.  The provisions of this section do not apply to [a] :

4-25    (a) An action that is based upon any latent deficiency described in

4-26  subsection 1 if the provisions of NRS 11.202 or 11.203 otherwise apply to

4-27  the latent deficiency; or

4-28    (b) A claim for indemnity or contribution.

4-29    [4.] 5. For the purposes of this section, “latent deficiency” means a

4-30  deficiency which is not apparent by reasonable inspection.

4-31    Sec. 9.  NRS 11.205 is hereby amended to read as follows:

4-32    11.205  1.  Except as otherwise provided in this section and NRS

4-33  [11.202, 11.203 and] 11.206, no action may be commenced against the

4-34  owner, occupier or any person performing or furnishing the design,

4-35  planning, supervision or observation of the construction[,] of, or

4-36  performing or furnishing the construction of , an improvement to real

4-37  property more than 6 years after the substantial completion of [such an] the

4-38  improvement, for the recovery of damages for:

4-39    (a) Any patent deficiency in the design, planning, supervision or

4-40  observation of the construction of, or in the construction of [such an] , the

4-41  improvement;

4-42    (b) Injury to real or personal property caused by [any such] the

4-43  deficiency; or

4-44    (c) Injury to or the wrongful death of a person caused by [any such] the

4-45  deficiency.

4-46    2.  [Notwithstanding the provisions of NRS 11.190 and subsection 1 of

4-47  this section, if] If an injury occurs in the sixth year after the substantial

4-48  completion of [such an] the improvement, an action for damages for injury

4-49  to property or person, damages for wrongful death resulting from [such]

5-1  the injury or damages for breach of contract may be commenced within 2

5-2  years after the date of [such] the injury, irrespective of the date of death,

5-3  but in no event may an action be commenced more than 8 years after the

5-4  substantial completion of the improvement.

5-5    3.  If the provisions of this section apply to an action:

5-6    (a) The action is subject only to the period of repose set forth in this

5-7  section; and

5-8    (b) No other period of limitation or repose set forth in this chapter

5-9  applies to the action.

5-10    4.  The provisions of this section do not apply to [a] :

5-11    (a) An action that is based upon any patent deficiency described in

5-12  subsection 1 if the provisions of NRS 11.202 or 11.203 otherwise apply to

5-13  the patent deficiency; or

5-14    (b) A claim for indemnity or contribution.

5-15    [4.] 5. For the purposes of this section, “patent deficiency” means a

5-16  deficiency which is apparent by reasonable inspection.

5-17    Sec. 10.  NRS 11.206 is hereby amended to read as follows:

5-18    11.206  The [limitations respectively prescribed by] periods of repose

5-19  set forth in NRS 11.203, 11.204 and 11.205 are not a defense in an action

5-20  brought against:

5-21    1.  The owner or keeper of any hotel, inn, motel, motor court,

5-22  boardinghouse or lodginghouse in this state on account of his liability as an

5-23  innkeeper.

5-24    2.  Any person on account of a defect in a product.

5-25    Sec. 11.  NRS 40.670 is hereby amended to read as follows:

5-26    40.670  1.  A contractor who receives written notice of a

5-27  constructional defect resulting from work performed by the contractor or

5-28  his agent, employee or subcontractor which creates an imminent threat to

5-29  the health or safety of the inhabitants of the residence shall take reasonable

5-30  steps to cure the defect as soon as practicable. The contractor shall not cure

5-31  the defect by making any repairs for which he is not licensed or by causing

5-32  any repairs to be made by a person who is not licensed to make those

5-33  repairs. [If]

5-34    2.  Except as otherwise provided in subsection 3 or 4, if the contractor

5-35  fails to cure the defect in a reasonable time, the owner of the residence may

5-36  have the defect cured and may recover from the contractor the reasonable

5-37  cost of the repairs plus reasonable attorney’s fees and costs in addition to

5-38  any other damages recoverable under any other law.

5-39    [2.  A]

5-40    3.  Except as otherwise provided in subsection 4, a contractor who

5-41  does not cure a defect pursuant to this section because he has determined,

5-42  in good faith and after a reasonable inspection, that there is not an

5-43  imminent threat to the health or safety of the inhabitants is not liable for

5-44  the cost of repairs, attorney’s fees and costs , or other damages relating to

5-45  the defect pursuant to [this section, except that if a building inspector

5-46  employed by a governmental body with jurisdiction certifies that there is

5-47  an imminent threat to the health and safety of the inhabitants of the

5-48  residence, the contractor is subject to the provisions of subsection 1.]

5-49  subsection 2.

6-1    4.  If an architect or residential designer registered pursuant to

6-2  chapter 623 of NRS, or a professional engineer licensed pursuant to

6-3  chapter 625 of NRS, certifies that the defect creates an imminent threat

6-4  to the health or safety of the inhabitants of the residence, and if the trier

6-5  of fact determines that the contractor refused to correct the defect in a

6-6  timely manner and was not acting in good faith, the owner of the

6-7  residence is entitled to recover from the contractor, in addition to

6-8  reasonable attorney’s fees and costs, treble the reasonable cost of the

6-9  repairs and other damages.

6-10    Sec. 12.  1.  The amendatory provisions of section 11 of this act do

6-11  not apply to an action that was commenced before October 1, 2001.

6-12    2.  The amendatory provisions of sections 7, 8 and 9 of this act do not

6-13  apply to an action if any period of limitation set forth in chapter 11 of NRS

6-14  that was applicable to the action, other than a period of repose set forth in

6-15  NRS 11.203, 11.204 or 11.205, commenced to run before October 1, 2001.

 

6-16  H