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
DPA	Third Read
X	As Passed the House

HB 2413 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.

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.

· 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 22, 2002

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