Prompt Payment Law Overview - Private Projects
Nevada’s prompt payment statutes set forth specific timeframes when general contractors, subcontractors, suppliers, and others involved with a construction project must be paid. This page provides an overview of these regulations, and addresses some frequently asked questions related to the Nevada prompt payment laws. You can also read the Full-Text of Nevada’s Prompt Payment Statutes.
Attorneys fees may be awarded to the prevailing party in an action to recover money owed.
Nevada Frequently Asked Questions
Prompt Payment Frequently Asked Questions
In the event that a contract does not set forth a schedule for payments, the party requesting payment must submit a request for payment.
The recovery of attorney’s fees requires a successful action to recover withheld payments. Note that when a court determines that a party stopped work or terminated a contract without reasonable reason, the court may award attorney’s fees up-the-chain (to paying parties) as well.
No. Nevada doesn’t allow miscellaneous amounts to be included on the face of a mechanics lien.
Nevada’s prompt payment act requires contractors to submit progress bills at least once a month at minimum, or more if provided for by the contract. Subcontractors do not have specific requirements as to the timing of when requests for payment must be given.
Nevada allows payments to be withheld for the following reasons:
- Work or labor that has not been performed or materials or equipment that has not been furnished for which payment is sought;
- To the extent that costs and expenses are reasonably necessary to correct or repair any non-compliant work to the extent that such costs and expenses exceed 50% of the amount of retention being withheld pursuant to the terms of the agreement;
- To account for money the owner has paid or is required to pay pursuant to an official notice from a state agency for the prime contractor or his lower-tiered subcontractors.
Sending a notice of intent to lien and prompt payment demand is generally the best method for encouraging parties to make payment.