November 17, 2006

InBusiness Las Vegas
Q&A November 17, 2006
Pezzillo Robinson PC
Brain J. Pezzillo, Esq.

Q: As a Subcontractor on a public works project, what payment remedies are available to me since I cannot record a mechanic's lien?

A: You have a number of options in the event that you are unpaid on a public works project. Contractors who perform work on a construction project typically have the right to record a mechanic's lien in the event that they are unpaid for work and/or services provided; however, mechanic's lien may not be recorded against property owned by the government. In lieu of recording a mechanic's lien, you have the right to make a claim against the public works payment bond posted by the prime contractor on the project. With few exceptions the general contractor on any public works project must post a payment bond. The purpose of this bond is to ensure payment to those who provide labor and materials.

In order to make a claim you must you must have provided a preliminary notice, just as is done on private works of improvement. Within ninety (90) days of last supplying labor and material you must make your claim upon the payment bond. Once the claim is made you must then wait an additional ninety (90) days before beginning a lawsuit. In no event, however, can litigation be commenced later than one year after labor and/or materials were last supplied.

Additionally, you have the right to collect on the contract you entered into with the general contractor. The Nevada licensing statutes likewise provide payment remedies to unpaid contractors. The specifics of the licensing laws will be addressed in a future article.

Articles Main