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These days contractors and builders can’t seem to produce new homes fast enough to satisfy the demands of consumers.  However, global shipping delays have caused long wait times for building materials and shortages have caused prices to rise.  The pressure to complete projects and the scarcity and cost of materials can lead to corner-cutting measures that may result in construction defects for new home buyers.

In Las Vegas, the price of lumber increased over 300% in a recent 12-month period which sent the local construction industry into a tailspin.  Lumber pricing has backed off somewhat from recent highs but home builders are still facing a shortage of skilled labor and supply chain issues.

If you’re lucky enough to take possession of your new Las Vegas home, you may find that there are issues that you didn’t anticipate would be problems when you purchased your new home.  For example, you may notice some cracking or see evidence of a water leak.  And you may wonder how you can go about getting these construction defects repaired and collect for any resulting damage.

What Qualifies As A New Home Construction Defect?

Construction defects in new home construction are governed by Chapter 40 of the Nevada Revised Statutes (NRS).  A “construction defect” is a defect in a home involving one of the following issues: 

  • design
  • construction
  • manufacture
  • repair
  • landscaping

The defect must either present an unreasonable risk of injury to a person or property or it must be the result of inadequate workmanship and have caused physical damage to your residence.

Two Types of New Home Construction Defects

Construction defects will be one of two types.

  • Patent – a defect that is clearly visible or easily discovered
  • Latent – a defect that is concealed or hidden and not easily discoverable

How To Make A Claim For New Home Construction Defects

Nevada law provides a mandatory process for new homeowners who have discovered construction defects to alert their contractor and try to resolve the situation without going to court.  If the matter can’t be resolved through a “Chapter 40” process then a lawsuit may be the last recourse.   

Thanks to recent changes in the law, Nevada new home owners have up to 10-years to bring claims for damages relating to either patent or latent construction defects. The 10-year period begins to run from the date of “substantial completion” of the construction.

The claims process under Chapter 40 goes like this:

  1. A homeowner provides written notice to the contractor detailing the defect, its cause, and the damage.
  • The homeowner then allows the contractor to inspect the defect and determine how to fix it.
  • The contractor must provide a written response to the homeowner within 90 days saying whether the contractor will fix the defect and damage, possibly making an offer of financial compensation to the homeowner or denying responsibility for the defect.

The homeowner and contractor are supposed to negotiate in good faith and submit to mediation to try and resolve any differences before going to court.

If notice of a defect in new construction is presented to a contractor within 1 year of the purchase closing, the responsible party is to make any necessary repairs within 45 days of receiving the notice.  If the repairs are not made within 45 days and alternative arrangements with the homeowner have not been made, the contractor is subject to disciplinary action.

Amounts You Can Recover for a New Home Construction Defect

Nevada law is intended to help homeowners and contractors resolve issues involving property damage.  The remedies provided under the law are limited to only economic damages suffered by the homeowner.  Personal injury claims arising from a construction defect are not covered by NRS Chapter 40 and are not governed by its provisions.

A new construction homeowner may collect the following damages from a construction defect:

  • Reasonable cost of repair
  • Reasonable cost of temporary housing
  • Reduction in the market value of the residence due to structural failure
  • Loss of use of any part of the residence
  • Reasonable value of other property damaged by the defect
  • Cost of experts to determine the nature, extent, and repair of the damage

There is an additional remedy available to a homeowner that might be appropriate depending upon the severity of the construction defect.  A homeowner and contractor may agree that the contractor will repurchase the home.  The purchase price is the value of the residence without the defect.  With this remedy, the homeowner may also collect costs for out-of-pocket expenses incurred because of the defect.

Contact A New Home Construction Defect Attorney At Paul Padda Law

At Paul Padda Law, our attorneys have significant experience handling construction defect cases.  These are often complicated cases requiring the selection of appropriate experts that can help make a strong case in your favor.  If you’re looking for outstanding construction defect attorneys to represent you, you need to call us today at (702) 366-1888 or get in touch with us through this website

New Home Construction Defect