Nevada Public Project Frequently Asked Questions
Who Is Protected under Nevada Bond Claim Laws?
In Nevada, first and second-tier subcontractors, laborers, material suppliers, equipment lessors, architects, and employee benefit trust funds have the right to make a claim on a bond provided the labor and/or material furnished was in excess of $500. No party more remote than the second-tier is entitled to protection. Further, if the claimant is required to be licensed to perform their work, that party must be licensed in order to make a claim on the bond.
Note that while the general protection provided is the ability to make a claim on the bond, if the property/improvement is used for a private or nongovernmental purpose, the property may be liened just as a private project. In this case, the same requirements apply as a regular mechanic’s lien.
When is the Deadline to File a Nevada Bond Claim?
On all projects except highway construction, the bond claim must be received by the general contractor within 90 days after the claimant last furnished labor and/or materials to the project. While Nevada statutes specifically apply this rule only to parties without a direct contract with the general contractor supplying the bond, it is unclear if the courts apply this deadline to all claimants, or only to parties without a contractual relationship with the prime contractor.
On highway construction projects, the bond claim must be filed with the Department of Transportation within 30 days of the final acceptance of the contract.
Who Should Receive the Nevada Bond Claim?
On all projects except highway construction, the only party required to receive the bond claim is the general contractor. It may be best practice to also send notice of the bond claim to the surety, as well, if known.
On highway projects, the bond claim must be sent to the Department of Transportation. It is unclear if the bond claim must also be sent to the general contractor and the surety, but it likely advisable to send the claim to these parties, as well.
When is the Deadline to Initiate Suit, or, How Long is My Nevada Bond Claim Effective?
Not less than 90 days and not more than 1 year after the last date materials/ labor furnished.
What Must the Nevada Bond Claim Include?
On all projects except highway construction, the only information specifically required is the amount claimed and the name of the person for whom the work was performed or material supplied. However, it may be best practice to also include some identification of the project, and a description of the labor and or material furnished.
On highway construction projects, the bond claim must include a statement that the claimant’s claim against the contractor or subcontractor has not been paid, and must be executed and verified before a notary public.
What Are the Lien Waiver Rules?
Nevada statutorily mandates that all parties on a construction project use certain legislatively designed construction lien waiver forms. This state is one of only 11 states that requires this. If a contractor or owner asks you to use a lien waiver form that does not conform to the statutory form, the waiver will be invalid, and the contractor could get in legal trouble. See this article: The 11 States with Statutory Lien Waiver Forms.
Also, Nevada state law prohibits contractors and suppliers from waiving their right to file a mechanics lien in contract. You can learn more about the prohibition of such “no lien clauses” at this article: Where Can You Waive Your Lien Rights Before Payment?
Can Suppliers to Suppliers File Bond Claims?
No, suppliers to suppliers likely cannot file a bond claim in Nevada.
How Must the Nevada Bond Claim Be Sent?
In Nevada, the bond claim must be sent by registered or certified mail.
Do I Need to Send a Nevada Preliminary Notice?
It depends. On all public projects except highway construction preliminary notice is required for all parties without a direct contract with the general contractor who supplied the bond. Preliminary notice is not required from any party on a highway construction project.
When do I Need to Send a Nevada Preliminary Notice?
When required, preliminary notice is required to be received by the general contractor within 30 days of the claimant first furnishing materials or labor.
What if I Send the Nevada Preliminary Notice Late?
If preliminary notice is required and sent more than 30 days after the first furnishing of labor and/or materials the amount of recovery is limited to the value of the labor and/or material furnished within the 30 days prior to the notice being received and any time after the notice. If the notice is never given, the claimant has no rights to make a claim on the bond.
How Should the Nevada Preliminary Notice be Sent?
In Nevada, preliminary notice must be sent by registered or certified mail to the residence or any office of the general contractor.
To Whom Must the Nevada Preliminary Notice be Given?
In Nevada, the only party required to receive preliminary notice is the general contractor, however, it may be best practice to also send preliminary notice to the surety, if known.