NRS624.940. Mandatory elements and required information in contracts; contractor to furnish copy of signed documents and receipt for money paid; certain contracts void; contractor to apply for and obtain necessary permits.  


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  •       1.  The Board shall adopt by regulation mandatory elements to be included in all contracts to be used by contractors for work concerning a residential pool or spa. Such mandatory elements must not be waived or limited by contract or in any other manner. On and after October 1, 2001, any contract entered into between a contractor and the owner of a single-family residence for work concerning a residential pool or spa must comply with the standard elements adopted by the Board. A contract that does not comply with the standard elements adopted by the Board is void and unenforceable against the owner.

          2.  Any such contract in an amount of more than $1,000 must contain in writing at least the following information:

          (a) The name of the contractor and his or her business address and license number.

          (b) The name and mailing address of the owner and the address or legal description of the property.

          (c) The date of execution of the contract.

          (d) The estimated date of completion of all work to be performed under the contract.

          (e) A description of the work to be performed under the contract.

          (f) The total amount to be paid to the contractor by the owner for all work to be performed under the contract, including all applicable taxes.

          (g) The amount, not to exceed $1,000 or 10 percent of the aggregate contract price, whichever is less, of any initial down payment or deposit paid or promised to be paid to the contractor by the owner before the start of construction.

          (h) A statement that the contractor has provided the owner with the notice and informational form required by NRS 624.600.

          (i) A statement that any additional work to be performed under the contract, whether or not pursuant to a change order, which will require the owner to pay additional money and any other change in the terms in the original contract must be agreed to in writing by the parties and incorporated into the original contract as a change order. A change order is not enforceable against the owner contracting for work concerning a residential pool or spa unless the change order clearly sets forth the scope of work to be completed and the price to be charged for the changes and is signed by the owner.

          (j) A plan and scale drawing showing the shape, size, dimensions and the specifications for the construction and equipment for the residential pool or spa and for other home improvements, and a description of the work to be done, the materials to be used and the equipment to be installed, and the agreed consideration for the work.

          (k) Except as otherwise provided in this subsection, the dollar amount of any progress payment and the stage of construction at which the contractor will be entitled to collect progress payments during the course of construction under the contract. The schedule of payments must show the amount of each payment as a sum in dollars and cents. The schedule of payments must not provide for the contractor to receive, nor may the contractor actually receive, payments in excess of 100 percent of the value of the work performed on the project at any time, excluding finance charges, except for an initial down payment or deposit as authorized by subsection 1 of NRS 624.935 or the regulations adopted by the Board. With respect to a contract executed before October 1, 2001, if any schedule of payments set forth in the contract does not comply with the provisions of this chapter or any regulations adopted pursuant thereto:

                 (1) The obligation of the owner to make payments in accordance with the payment schedule shall be deemed void and unenforceable; and

                 (2) The lender, if any, may not initiate proceedings to enforce the payment of any applicable loan unless and until the contract is reformed or otherwise amended to comply with those provisions of law.

    Ê The provisions of this paragraph do not apply if the contractor has furnished a bond for payment and performance covering full performance and completion of the contract and the cost of the bond is included in the price of the project or if the contractor builds a residential pool or spa as part of the original building plan pursuant to which the contractor builds a single-family residence on the premises.

          (l) If the contract provides for payment of a commission to a salesperson out of the contract price, a statement that the payment must be made on a pro rata basis in proportion to the schedule of payments made to the contractor by the disbursing party in accordance with the provisions of paragraph (k).

    Ê Except as otherwise provided in subsection 5, the contract may contain such other conditions, stipulations or provisions as to which the parties may agree.

          3.  The contract must contain:

          (a) A method whereby the owner may initial provisions of the contract, thereby indicating that those provisions have been read and are understood.

          (b) In close proximity to the signatures of the owner and the contractor, a notice stating that the owner:

                 (1) May contact the Board if assistance is needed to clarify any of the provisions of the contract that the owner does not fully understand; and

                 (2) Has the right to request a bond for payment and performance if such a bond is not otherwise required pursuant to NRS 624.270.

          4.  At the time the owner signs the contract, the contractor shall furnish the owner a legible copy of all documents signed and a written and signed receipt for any money paid to the contractor by the owner. All written information provided in the contract must be printed in at least 10-point bold type.

          5.  A condition, stipulation or provision in a contract that requires a person to waive any right provided by NRS 624.900 to 624.965, inclusive, or relieves a person of an obligation or liability imposed by those sections is void. Failure to comply with the requirements of NRS 624.900 to 624.965, inclusive, renders a contract void and unenforceable against the owner.

          6.  The contractor shall apply for and obtain all necessary permits.

      (Added to NRS by 1997, 2699; A 2001, 2978; 2005, 2378)—(Substituted in revision for NRS 597.719)