House of Representatives

HB 2413

swimming pool; spa; construction contracts

Sponsors: Representatives Leff, Chase: Blendu, Somers, Senator Bungaard

DP	Committee on Commerce and Economic Development
DPA	Caucus and COW
X	Third Read
	As Passed the House

HB 2143 mandates that any contract between a homeowner and a licensed pool builder must include provisions allowing the purchaser the option to buy a payment and performance bond and a prescribed payment schedule.

Current Status

HB 2143 passed the Commerce and Economic Development Committee unamended.

The Committee of the Whole adopted an amendment that provides written notification to the general public regarding the right to file a complaint with the Arizona Registrar of Contractors.

History

Current law provides that any licensed contractor, including pool builders, must follow the guidelines for the minimum elements of a contract listed in 32-1158. These elements include the name, contact information, and license number of the contractor; the estimated date of completion of the contract; the amount of the down payment; and the amount of any progress payment and the stage of construction that the progress payment is due. Currently there is no statutory limit on the money that a contractor may collect as a down payment, or the amount of money that a contractor can collect before completion of a pool or spa.

Provisions

· Requires that a pool contract and spa contract contain the following provisions:

1. A provision offering the purchaser the opportunity to buy a payment and performance bond without any surcharge or service fee levied by the contractor.

2. The following payment schedule:

· A down payment of not more than $1000 payable on the execution of the contract.

· No more than 30% of the contract price plus any written change orders after excavation is complete.

· No more than 30% of the contract price plus any written change orders after infrastructure is installed.

· No more than 30% of the contract price plus any written change orders after decking materials are installed.

· All remaining sums due on the original contract before finishing materials are applied or the pool or spa is complete.

3. A statement approved by the Registrar of Contractors outlining the purchaser’s right to receive documents explaining contract provisions and methods of legal recourse.

4. A provision approved by the Registrar of Contractors outlining the rights of a purchaser under Title 44, Chapter 15 that deals with home solicitations and referral sales.

· Stipulates that if the purchaser buys a payment and performance bond the payment schedule can be changed in any way agreed upon by the parties to the contract.

· Specifies that any changes, additions, or deletions to the original contract must be included in a written change order.

· Establishes that a contractor’s noncompliance is a violation of 32-1154 which deals with grounds for suspension or revocation of license, jurisdiction, civil penalties, and recovery fund awards.

Amendment

· Requires all written and verbal contracts for residential construction to contain an initialed statement of confirmation that the customer has received notice of the right to file a complaint with the Registrar of Contractors.

· Outlines the content of the written document.

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45th Legislature

Second Regular Session 2 April 4, 2002

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