Construction Defect Demand Letter - Nevada

CONSTRUCTION DEFECT DEMAND LETTER

STATE OF NEVADA

NOTICE PURSUANT TO NEVADA REVISED STATUTES CHAPTER 40

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND REGULAR FIRST-CLASS MAIL

[DATE]

[CONTRACTOR/BUILDER NAME]
[ADDRESS]
[CITY, STATE ZIP]
Nevada Contractor License No.: [LICENSE NUMBER]

Re: STATUTORY NOTICE OF CONSTRUCTION DEFECTS PURSUANT TO NRS 40.645
Property Address: [PROPERTY ADDRESS]
Owner: [OWNER NAME]
Original Contract Date: [DATE]
Substantial Completion Date: [DATE]

Dear Sir or Madam:

This firm represents [OWNER NAME] ("Owner" or "Claimant") regarding construction defects at the above-referenced property. This letter constitutes formal notice of construction defects pursuant to Nevada Revised Statutes Chapter 40 (NRS 40.600 et seq.), and serves as the required pre-litigation notice providing you with the statutory opportunity to inspect, offer to repair, and/or settle this claim before litigation is commenced.

THIS IS A STATUTORY NOTICE REQUIRED UNDER NEVADA LAW PURSUANT TO NRS 40.645. YOUR TIMELY RESPONSE IS REQUIRED.

I. NEVADA-SPECIFIC LEGAL FRAMEWORK

A. Nevada Construction Defect Law

This notice is provided pursuant to NRS 40.600 et seq., Nevada's comprehensive Construction Defect Law, which establishes mandatory pre-litigation procedures for construction defect claims.

Under the Law:

• Before commencing suit, the claimant must give the contractor written notice of the claimed defects by certified mail (NRS 40.645) and allow inspection and a reasonable opportunity to repair (NRS 40.647)
• The notice must specify the defects, and any resulting damages or injuries, in reasonable detail (NRS 40.645(2))
• The contractor must send a written response electing whether or not to repair not later than 90 days after receiving the notice (NRS 40.6472); any subcontractor, supplier, or design professional who is served has its own 90-day response period
• Mediation may be pursued by agreement of the parties (it is not mandatory)
• A claimant who commences an action without complying with NRS 40.645 and 40.647 is subject to dismissal without prejudice (NRS 40.647(2))

B. Statute of Limitations

Nevada law provides the following limitations periods for construction defect claims:

These limitations periods run independently of, and are capped by, the 10-year statute of repose in NRS 11.202 (see § I.C).

C. Statute of Repose

Nevada has a single statute of repose for construction and design defects:

• NRS 11.202(1): No action may be commenced more than 10 years after the substantial completion of the improvement to real property, regardless of whether the defect is patent or latent. This uniform 10-year period was restored by A.B. 421 (eff. Oct. 1, 2019). The prior tiered periods (former NRS 11.203 and 11.204) and the 6-year period enacted by A.B. 125 (2015) are no longer in effect — former NRS 11.203 and 11.204 were repealed.
• NRS 11.202(2): An action for fraud in causing a construction deficiency may be commenced at any time after substantial completion (no repose bar), except as to certain lower-tiered subcontractors who did not and should not have known of the defect.
• Substantial completion is determined under NRS 11.2055 (e.g., the date a certificate of occupancy is issued) or, absent a statutory event, under the common law. See Somersett Owners' Ass'n v. Somersett Dev. Co., 492 P.3d 534 (Nev. 2021).

D. Warranties and Duties Under Nevada Law

1. Implied Warranty of Habitability / Workmanlike Construction: A builder-vendor of a new residence impliedly warrants that the home is constructed in a workmanlike manner and is fit for habitation. Radaker v. Scott, 855 P.2d 1037 (Nev. 1993) (applying the implied warranty of habitability against those who built a home for sale).

2. Statutory Liability for Constructional Defects: NRS 40.600 to 40.695 govern the claimant's rights and remedies against a contractor for a "constructional defect" (defined in NRS 40.615). A contractor's liability for such defects, and the statutory defenses to that liability, are set out in NRS 40.640 (Nevada Chapter 40 does not create a separate statutory express warranty for residential construction).

3. Scope of Chapter 40: Chapter 40 applies to defects in a "new residence" or in the alteration of or addition to an existing residence; rental apartment units later sold are not necessarily "new residences" within the statute. See Westpark Owners' Ass'n v. Eighth Judicial Dist. Court, 123 Nev. 349, 167 P.3d 421 (2007).

E. Contractor Licensing Requirements

Under NRS 624.010 et seq., contractors must be licensed by the Nevada State Contractors Board. Unlicensed contracting is a crime and contracts may be unenforceable.

II. PROPERTY AND PROJECT INFORMATION

A. Property Description

B. Project Information

C. Parties Involved

General Contractor:

• Name: [NAME]
• License Number: [NUMBER]
• Address: [ADDRESS]
• Contact: [PHONE/EMAIL]

Subcontractors: (List all subcontractors whose work is believed defective)

III. DESCRIPTION OF DEFECTS

Pursuant to NRS 40.645, the following is a detailed description of each claimed construction defect:

DEFECT #1: [TITLE - e.g., STUCCO CRACKING AND MOISTURE INTRUSION]

Location: [Specific location within the property]

Description: [Detailed description of the defect, including how it manifests, when it was discovered, and any progression]

Basis as a "Constructional Defect" (NRS 40.615) — check all that apply:
☐ Presents an unreasonable risk of injury to a person or property (NRS 40.615(1)); or
☐ Was not completed in a good and workmanlike manner and proximately causes physical damage to the residence, an appurtenance, or the real property to which it is affixed (NRS 40.615(2))

Building Components Affected:
☐ Foundation/Slab ☐ Framing ☐ Roofing ☐ Exterior walls/Siding ☐ Windows/Doors
☐ Plumbing ☐ Electrical ☐ HVAC ☐ Insulation ☐ Drywall/Interior finishes
☐ Flooring ☐ Waterproofing ☐ Drainage ☐ Stucco/EIFS ☐ Other: [SPECIFY]

Evidence Supporting Defect:
[Describe supporting evidence - expert reports, photographs, testing results, etc.]

Standards Violated: (Under NRS 40.615, a code or standard violation supports a claim only where it presents an unreasonable risk of injury or proximately causes physical damage — a technical violation alone is not a "constructional defect.")
☐ Nevada Building Code
☐ Clark County/Washoe County Building Code
☐ Manufacturer's Installation Instructions
☐ Industry Standards (IRC, IBC, ASTM)
☐ Contract Specifications

Date First Observed: [DATE]

Estimated Cost to Repair: $[AMOUNT]

DEFECT #2: [TITLE]

[REPEAT FORMAT ABOVE FOR EACH DEFECT]

IV. SUMMARY OF DEFECTS AND DAMAGES

V. LEGAL BASIS FOR CLAIMS

A. Statutory Constructional Defect Claim (NRS 40.600–40.695)

The conditions at the property constitute one or more "constructional defects" as defined in NRS 40.615, for which you are liable as the contractor under NRS 40.640, subject only to the statutory defenses enumerated in that section.

B. Breach of Contract

You failed to perform construction in accordance with the contract terms, plans, specifications, and applicable building codes.

C. Breach of Express Warranty

You provided express warranties regarding quality and durability of construction which you have breached.

D. Breach of Implied Warranty of Habitability

Under Nevada law, builders impliedly warrant that new homes are fit for habitation. Westpark Owners' Ass'n v. Eighth Judicial District Court, 123 Nev. 349 (2007).

E. Negligence

You owed a duty of care to perform construction in accordance with the applicable standard of care and breached that duty.

F. Violation of Building Codes

The construction violates the Nevada Building Code and/or local building codes.

VI. STATUTORY NOTICE REQUIREMENTS

A. Your Rights Under NRS Chapter 40

Upon receipt of this notice, you have the right to:

1. Inspect the Property: Obtain reasonable access to inspect the alleged defects, upon reasonable notice to the claimant (NRS 40.6462, NRS 40.647)
2. Conduct Testing: Perform reasonable testing to evaluate the defects during the inspection
3. Respond and Elect to Repair: Send a written response, not later than 90 days after you receive this notice, stating whether you elect to repair the defects and/or proposing monetary compensation (NRS 40.6472)
4. Request Additional Information: Request documents reasonably supporting the claim
5. Dispute Claims: Deny responsibility for the claimed defects in writing

B. Response Deadline

You must respond within NINETY (90) DAYS of receipt of this notice pursuant to NRS 40.6472.

Your response should include:

1. Whether you accept or dispute the claimed defects
2. Whether you wish to inspect the property
3. Your offer, if any, to repair or compensate
4. Any documentation supporting your position

C. Pre-Suit Requirements

Before commencing litigation, the claimant must give this notice (NRS 40.645) and allow you a reasonable opportunity to inspect and, if you so elect, to repair the defects (NRS 40.647). If notice is given not more than one year after the close of escrow of the initial purchase of the residence, you must make any elected repairs within 45 days unless completion is delayed for reasons beyond your control (NRS 40.672). The claimant may proceed to litigation if you do not timely respond, decline to repair, or fail to cure the defects.

D. Consequences of Non-Response

Failure to send a timely written response, or an election not to repair, may result in:

• The claimant proceeding to litigation without further delay (NRS 40.647, NRS 40.650)
• Loss of your opportunity to limit exposure by curing the defects
• The claimant's recovery of the damages authorized by NRS 40.655

VII. DEMAND FOR INSPECTION ACCESS

Pursuant to NRS 40.6462 and NRS 40.647, we hereby offer you the opportunity to inspect the property. To schedule an inspection:

1. Contact our office in writing within 30 days of receipt of this notice
2. Propose inspection dates during reasonable business hours
3. Identify all persons who will attend
4. Identify any experts who will participate
5. Identify any destructive testing you wish to conduct

Contact Information:
[LAW FIRM NAME]
[ADDRESS]
[PHONE]
[EMAIL]

VIII. PRESERVATION OF EVIDENCE

You are hereby directed to preserve all documents and materials relating to the construction, including:

• All contracts and subcontracts
• Plans, specifications, and drawings
• Inspection reports and quality control records
• Correspondence with owner and subcontractors
• Photographs taken during construction
• Daily logs and progress reports
• Warranties from manufacturers
• Insurance policies and certificates
• OSHA logs and safety records

Spoliation Warning: Failure to preserve evidence may result in adverse inference instructions and sanctions.

IX. SETTLEMENT DEMAND

To resolve this matter without litigation, we demand:

Option A - Repair by Contractor:

1. Complete repair of all identified defects within [NUMBER] days
2. All repairs warranted for minimum of [NUMBER] years
3. Payment of investigation, testing, and expert costs reasonably incurred (NRS 40.655(1)(e)): $[AMOUNT]
4. Reimbursement of temporary housing and other costs recoverable under NRS 40.655: $[AMOUNT]

Option B - Monetary Settlement:
Payment of $[AMOUNT] within 30 days.

X. CONCLUSION

Please respond in writing within 90 days of receipt of this notice as required by NRS 40.6472. If we do not receive a satisfactory response, or if you decline to repair or fail to cure the defects, our client will proceed with litigation and seek all damages recoverable under NRS 40.655 — including the reasonable cost of repairs and temporary housing, loss of use, any diminution in market value attributable to structural failure, other property damage, expert and investigation costs, and statutory interest.

Note on fees: Attorney's fees are not a recoverable item of damages under NRS 40.655. Under NRS 40.6472(4), a court may award the contractor its attorney's fees and costs if the claimant does not prevail. This demand is made with that statutory framework in mind.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
Nevada Bar No. [NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [OWNER NAME]

ENCLOSURES:
☐ Photographs of defects
☐ Expert report(s)
☐ Repair estimates
☐ Copy of construction contract
☐ Correspondence history

cc: [OWNER NAME]
[INSURANCE CARRIER]
Nevada State Contractors Board (if applicable)

NEVADA-SPECIFIC PRACTICE NOTES

NRS Chapter 40 Requirements:

• Pre-suit notice of defects required (NRS 40.645); claimant must allow inspection and a reasonable opportunity to repair (NRS 40.647)
• Contractor must send a written response, electing to repair or not, within 90 days (NRS 40.6472)
• Mediation is available by agreement of the parties (not mandatory)
• Attorney's fees are NOT a recoverable item of damages under NRS 40.655 (removed by A.B. 125 in 2015 and not restored by A.B. 421 in 2019); under NRS 40.6472(4) a court may award the contractor its fees/costs if the claimant does not prevail
• Comprehensive statutory scheme governs residential construction defect claims

Definition of "Constructional Defect" (NRS 40.615):
Since A.B. 125 (2015), work is a "constructional defect" only if it (1) presents an unreasonable risk of injury to a person or property, or (2) is not completed in a good and workmanlike manner AND proximately causes physical damage to the residence, an appurtenance, or the real property. A building-code or industry-standard violation, standing alone, no longer suffices. (There is no statutory "Category 1/2/3" classification.)

Statute of Repose:

• Uniform 10 years from substantial completion for all construction/design defects (NRS 11.202(1)), restored by A.B. 421 (eff. 10/1/2019)
• No repose bar for fraud (NRS 11.202(2))
• Former tiered sections NRS 11.203 and 11.204 were repealed by A.B. 125 (2015) and no longer apply
• Substantial completion determined under NRS 11.2055

Contractor Licensing:

• Mandatory licensing under NRS 624
• Verify license with Nevada State Contractors Board
• Unlicensed contracting is criminal offense
• Contract may be unenforceable if unlicensed

HOA/Condominium Claims:

• Special procedures for common interest communities
• NRS Chapter 116 governs HOA claims
• Association has standing for common element defects

Attorney's Fees:

• Chapter 40 does not authorize recovery of attorney's fees as damages (NRS 40.655 lists the recoverable damages, which do not include fees)
• Under NRS 40.6472(4), if the claimant does not prevail, the court may deny the claimant's fees/costs and award the contractor its fees and costs
• Offers of judgment (NRCP 68 / NRS 17.115) may still affect fee and cost exposure

Expert Requirements:

• Expert testimony typically required
• Licensed design professionals for design defects
• Licensed contractors for construction methodology

This template is for informational purposes only and does not constitute legal advice. Consult a licensed Nevada attorney before use.