NV AB505

Requires contractors, subcontractors, suppliers, and design professionals to maintain liability insurance covering constructional defects and mandates they present claims to their insurer upon receiving written notice of a defect

Written responses to constructional defect notices must now state whether the party elects mediation or waives it; failure to include this statement constitutes automatic waiver of the mediation requirement

Expands the definition of "constructional defect" to include defects that create a substantial risk of causing physical damage, not just those that have already caused damage

Requires repair election responses to include detailed information about the defect location, repair method, and nature/extent of repairs, plus mandatory compensation proposals for temporary housing if needed

Removes the $750 daily cap on mediation fees, extends the offer of judgment acceptance period from 10 to 14 days, and repeals NRS 40.650's penalties for rejecting reasonable settlement offers to align with Nevada Rule of Civil Procedure 68