January 19, 2007

InBusiness Las Vegas
Q&A January 19, 2007
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: In a previous article (November 17, 2006) it was discussed what remedies are available to a contractor engaged on a public works project. In addition to the payment bond remedies, a contractor has the right to seek payment from the contractor with whom it has contracted pursuant to the Nevada Public Works Prompt Payment Act. The Nevada Legislature has enacted a series of statutes which mandates that prior to payments being withheld by a public body, certain notice provisions must be followed. Within 20 days of receiving a billing from a contractor, the public body, if it intends to withhold payment for any reason, must provide the contractor a written notice of such withholding which includes the following information: 1) the amount of the payment to be withheld, and 2) a detailed explanation of the reason the payment is being withheld, including a specific reference to the provisions or section of the contract or building codes or applicable laws with which it is alleged that the contractor failed to comply.

Once the contractor has provided a written notice of the correction of the condition which gave rise to the withholding, and the once the public body has confirmed that the condition has been corrected, the public body must pay the withheld amount within 30 days after it receives the next progress billing. Similar provisions also protect subcontractors and suppliers which have not received payment.

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