By Shauna Krause, President, Capitol Services, Inc.
Like sausage, they are making new law every day too! Contractors who fail to keep up could find themselves behind the curve. If you missed the change in NV this October that could be you. Life changes things daily. Change is just about the only constant you can count on and why having an expert resource keeping up lets your focus remain on the job…
Q: We have a Joint Venture license that was formed to bid on some work. The contract was awarded to the Joint Venture and the work was complete, but there may be some minor repair/warranty work remaining. One of the JV entities has agreed to sell their interest in the JV to the other entity. At the time of the sale, that entity will withdraw/disassociate from the Joint Venture. What impact will that on the license? Will it immediately be terminated? If so, can the JV obtain an extension from the CSLB to complete the contract closeout and any repair/warranty work?
A: When one of the JV entities disassociates, the JV license will be cancelled. The remaining entity can request a continuance of the license to complete projects contracted for or in progress prior to the date of the disassociation. The continuance can be requested for a "reasonable amount of time" to be determined by the Board. The request must be made in writing and received within 90 days of the disassociation of entity being removed.
I would suggest providing a copy of your warranty to the CSLB to show the time it covers. If it's a year, they may give you year (?) Otherwise, obviously transfer the contracts to the entity who will be performing the work for when the continuance expires.
Renewal Reminders: To ensure a timely renewal of your license, be sure to keep your license information updated! Items you will want to keep in order are bonds, insurance, current Officers of record, current Qualifying Individual, and Secretary of State entity status.
A new law became effective October 1, 2023 in NV which affects all residential contractors. The statute requires all contractors performing residential improvement work comply with one of the following: 1. A down payment or deposit amount cannot exceed $1000 or 10% of the aggregate contract price, whichever is less, of any initial down payment or deposit paid or promised to be paid to the residential contractor by the owner before the start of work, OR, 2. The provisions of item 1 do not apply if the residential contractor has filed a Bond solely for the protection of consumers in the amount of $100,000, or has been granted relief by the Board pursuant to subsection 5 of NRS 624.270.
Regardless of which option you choose, this new law requires that you update existing contracts to ensure compliance. The new language which must be included in all contracts for residential improvement on single-family residences must include can be found here http://nscb.nv.gov/residential_improvements.html.
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While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email info@cutredtape.com, or write us at Capitol Services, Inc., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Search past columns at www.cutredtape.com.