Home improvement contracts, which involve work on existing structures to renovate, repair, or upgrade them, are considered construction contracts. When engaging in such projects, it is essential to ensure that the contractor you hire is properly licensed. Licensing requirements and regulations for contractors can vary from one jurisdiction to another.
By working with a licensed contractor, the homeowner receives protections by the Nevada State Contractors Board, specifically those under the board’s Home Improvement Bill of Rights.
The home improvement contract outlines what is required of the project as agreed to by the parties.
While there is a wide range on what parties in a contract can agree to in their contract, there are a few things under Nevada law that parties cannot agree to in the contract.
For example, a “no lien clause” – that is, a clause expressly prohibiting a contractor from filing a mechanic’s lien or any other lien on the property as a response to non-payment - is prohibited under Nevada law and unenforceable against a contractor or subcontractor.
In addition to having prohibitions on things that cannot be in a contract, there are also requirements that must be included.
For any work on a single-family residence, the contractor’s license number must be included along with that of any subcontractors providing over $500 in labor or materials.
The contract must also include a notice of the contractor’s right to a lien for non-payment, the Nevada contractor’s licensing information, and a notice of the Nevada Residential Constructions Recovery Fund.
Under Nevada law, construction contracts do not have to be in writing, but this can greatly impact rights for recovery under a breach of contract claim.
Specifically, the existence of a written contract as opposed to an oral agreement directly impacts the timeframe in which a homeowner can bring such a claim.
If the contract is written, the statute of limitation for a breach of contract is 6 years, whereas it is only 4 years for oral home improvement contracts.
Learn more about Home Improvement Contracts in Nevada.
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