{"id":705139,"date":"2015-04-21T06:58:49","date_gmt":"2015-04-21T12:58:49","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=705139"},"modified":"2015-04-15T10:59:31","modified_gmt":"2015-04-15T16:59:31","slug":"recent-amendments-ab-125-to-nrs-chapter-40-even-the-playing-field-for-builders-and-contractors","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/recent-amendments-ab-125-to-nrs-chapter-40-even-the-playing-field-for-builders-and-contractors\/","title":{"rendered":"Recent Amendments (AB 125) to NRS Chapter 40 even the Playing Field for Builders and Contractors"},"content":{"rendered":"<p>Robert E. Schumacher, Brian K. Walters and Megan H. Hummel | Gordon &amp; Rees LLP | April 6, 2015<\/p>\n<p>On February 24, 2015, Governor Brian Sandoval signed Assembly Bill 125 (\u201cAB 125\u201d) into law. Dubbed the \u201cHomeowner Protections Act of 2015,\u201d AB 125 makes substantial changes to Nevada\u2019s construction defect laws, particularly regarding the burdens placed on homeowners and their counsel during pre-litigation NRS Chapter 40 proceedings. The changes set forth in AB 125 are effective immediately (and in some instances, retroactively). Highlights of relevant revisions are as follows:<\/p>\n<ul>\n<li><strong>Contractual Indemnity.<\/strong> Contractual indemnity provisions are now void and unenforceable if they require a subcontractor to defend and indemnify a \u201ccontrolling party\u201d from liability resulting from: (1) the intentional act or omission of the controlling party; or (2) another trade\u2019s modification of the subcontractor\u2019s work.<\/li>\n<li><strong>OCIP Disclosures<\/strong>. Developers must now disclose certain information regarding Owner Controlled Insurance Policies in a subcontractor\u2019s contract documents.<\/li>\n<li><strong>Offers of Judgment<\/strong>. Parties may now serve Offers of Judgment (\u201cOOJ\u201d) at any time after a homeowner serves his NRS Chapter 40 Notice. If the homeowner reject the OOJ and fails to obtain a more favorable judgment during trial, he will be precluded from recovering his attorneys\u2019 fees and costs from the date of service of the OOJ to the date of entry of judgment. He may also be required to pay for the offering party\u2019s reasonable fees and costs.<\/li>\n<li><strong>Definition of a Constructional Defect<\/strong>. AB 125 limits the definition of a constructional defect to a defect which: (1) presents an unreasonable risk of injury to a person or property; or (2) is not completed in a good and workmanlike manner and proximately causes physical damage to the residence, appurtenance, or real property to which the appurtenance is affixed.<\/li>\n<li><strong>NRS Chapter 40 Notices<\/strong>. Homeowners are now required to identify in specific detail each defect that is the subject of their claim, including its\u00a0exact\u00a0location. They must also describe the cause of the defect, and the nature and extent of any damage or injury resulting from the defect. Additionally, homeowners must include a signed statement verifying the existence of each defect listed in the notice. If a notice is sent by an HOA, the statement must be signed by a member of the HOA\u2019s executive board or an officer under penalty of perjury.<\/li>\n<li><strong>Visual Inspections<\/strong>. Homeowners must be present during visual inspection of their properties, and must identify the exact location of each alleged defect verified in their NRS Chapter 40 Notice. AB 125 imposes the same requirements on experts if the NRS Chapter 40 Notice was based upon an expert opinion.<\/li>\n<li><strong>Homeowners\u2019 Warranties<\/strong>. Before serving a NRS Chapter 40 Notice, homeowners must submit their claim under their homeowners\u2019 warranty, and may only include claims in the NRS Chapter 40 Notice that were denied by their insurer.<\/li>\n<li><strong>Removal of Attorneys\u2019 Fees<\/strong>. AB 125 eliminates attorneys\u2019 fees as recoverable damages under section 40.655.<\/li>\n<li><strong>Changes to the Statute of Limitation<\/strong>. The statute of limitation for constructional defect claims is now six years after substantial completion of the improvement. Additionally, the statute of limitations tolls from the time a NRS Chapter 40 Notice is given until: (1) one year after the notice of claim; or (2) thirty days after NRS Chapter 40 mediation is concluded or waived. Statutes of limitation and repose may be tolled for longer than one year only if a claimant demonstrates \u201cgood cause.\u201d<\/li>\n<li><strong>Standing of Homeowners\u2019 Associations to Sue<\/strong>. Homeowners\u2019 Associations may not bring actions in its own name or on behalf of its unit owners\u2019 for any constructional defect unless the action pertains exclusively to common elements.<\/li>\n<\/ul>\n<p>While the full implications of AB 125 will not be known until it is put into practice, it is clear that the law creates new obligations for almost every party involved in a constructional defect lawsuit. It is essential that companies review AB 125 carefully to determine the impact on their business practices.<\/p>\n<p>via <a href=\"http:\/\/www.lexology.com\/library\/detail.aspx?g=c7da133d-15a4-47f4-b17f-451b3fd4a4d7&amp;utm_source=Lexology+Daily+Newsfeed&amp;utm_medium=HTML+email+-+Other+states+section&amp;utm_campaign=Lexology+subscriber+daily+feed&amp;utm_content=Lexology+Daily+Newsfeed+2015-04-08&amp;utm_term=\">Recent amendments (AB 125) to NRS Chapter 40 even the playing field for builders and contractors &#8211; Lexology<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Robert E. Schumacher, Brian K. Walters and Megan H. Hummel | Gordon &amp; Rees LLP | April 6, 2015 On February 24, 2015, Governor Brian Sandoval signed Assembly Bill 125 (\u201cAB 125\u201d) into law. Dubbed the \u201cHomeowner Protections Act of 2015,\u201d AB 125 makes substantial changes to Nevada\u2019s construction defect laws, particularly regarding the burdens&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/recent-amendments-ab-125-to-nrs-chapter-40-even-the-playing-field-for-builders-and-contractors\/\">Continue reading <span class=\"screen-reader-text\">Recent Amendments (AB 125) to NRS Chapter 40 even the Playing Field for Builders and Contractors<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[4,172],"tags":[7855,7857,7856,152],"class_list":["post-705139","post","type-post","status-publish","format-standard","hentry","category-construction-defects","category-construction-law-2","tag-ab-125","tag-construction-defect-laws","tag-homeowner-protections-act-of-2015","tag-nevada","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Recent Amendments (AB 125) to NRS Chapter 40 even the Playing Field for Builders and Contractors - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/recent-amendments-ab-125-to-nrs-chapter-40-even-the-playing-field-for-builders-and-contractors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Recent Amendments (AB 125) to NRS Chapter 40 even the Playing Field for Builders and Contractors - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Robert E. Schumacher, Brian K. Walters and Megan H. Hummel | Gordon &amp; Rees LLP | April 6, 2015 On February 24, 2015, Governor Brian Sandoval signed Assembly Bill 125 (\u201cAB 125\u201d) into law. Dubbed the \u201cHomeowner Protections Act of 2015,\u201d AB 125 makes substantial changes to Nevada\u2019s construction defect laws, particularly regarding the burdens&hellip; Continue reading Recent Amendments (AB 125) to NRS Chapter 40 even the Playing Field for Builders and Contractors\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/recent-amendments-ab-125-to-nrs-chapter-40-even-the-playing-field-for-builders-and-contractors\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise &amp; Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2015-04-21T12:58:49+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/recent-amendments-ab-125-to-nrs-chapter-40-even-the-playing-field-for-builders-and-contractors\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/recent-amendments-ab-125-to-nrs-chapter-40-even-the-playing-field-for-builders-and-contractors\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Recent Amendments (AB 125) to NRS Chapter 40 even the Playing Field for Builders and Contractors\",\"datePublished\":\"2015-04-21T12:58:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/recent-amendments-ab-125-to-nrs-chapter-40-even-the-playing-field-for-builders-and-contractors\/\"},\"wordCount\":659,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"AB 125\",\"Construction Defect Laws\",\"Homeowner Protections Act of 2015\",\"Nevada\"],\"articleSection\":[\"Construction Defects\",\"Construction Law\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/recent-amendments-ab-125-to-nrs-chapter-40-even-the-playing-field-for-builders-and-contractors\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/recent-amendments-ab-125-to-nrs-chapter-40-even-the-playing-field-for-builders-and-contractors\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/recent-amendments-ab-125-to-nrs-chapter-40-even-the-playing-field-for-builders-and-contractors\/\",\"name\":\"Recent Amendments (AB 125) to NRS Chapter 40 even the Playing Field for Builders and Contractors - Advise &amp; 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