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NEVADA CONSTRUCTION LAW
TABLE OF CONTENTS

 

 

PREFACE    ............................................................................................ xiii

ACKNOWLEDGEMENTS....................................................................... xv

ABOUT THE AUTHORS....................................................................... xvii


CHAPTER 1    
SOURCES OF NEVADA CONSTRUCTION LAW    1

I.   Statutes & Regulations    1
II.    Common Law/Case Law    2


CHAPTER 2    
BUSINESS ENTITY TYPES    4

I.   Sole Proprietorships    4
A.    Characteristics of a Sole Proprietorship    4
II.    Partnerships    5
A.    General Partnerships    5
B.    Management of Partnership    5
C.    Liabilities    6
D.    Limited Partnerships    6
E.    Limited Liability Partnership    9
III.   LIMITED LIABILITY COMPANIES    9
A.    Formation    9
IV.   Corporations    10
A.    Formation    10
B.    Liability    10
C.    Management    11


CHAPTER 3    
LICENSING OF CONTRACTORS AND DESIGN PROFESSIONALS    14

I.   DEFINITIONS    14
A.    Contractors    14
B.    Professional Engineering    16
C.    Professional Land Surveyor    16
D.    Architect    17
E.    Interior Design    18
F.    Residential Design    19
G.    Landscape Architect    19
II.    Nevada State Contractors Board    20
A.    Contractor Licensing    20
III.   Nevada State Board of Engineers and Land Surveyors    37
A.    Engineer    37
B.    Land Surveyors    37
C.    Architecture, Interior Design and Residential Design Professionals    38


CHAPTER 4    
PUBLIC WORKS BIDDING    43

I.   Bidding on Public Works Projects    43
A.    Overview    43
B.    Bid Solicitation    45
C.    Requirements of Submitted Bids    45
D.    Required Bonds for Public Works    55


CHAPTER 5    
PUBLIC WORKS PAYMENT REMEDIES    57

I.   Nevada Public Works Prompt Payment Statutes    57
A.    Overview    57
B.    Payments by Owner to Contractor    58
C.    Withholding of Payment From Contractor    59
D.    Payments by Contractor to Subcontractors and Suppliers    61
E.    Payment by Subcontractors to Lower-Tiered Subcontractors and Suppliers    63
F.    Remedies for Payment Violations    64
G.    Subcontractor/Supplier Remedies    64
II.    Public Work Payment Bonds    65
A.    Introduction    65
B.    Claims Upon Payment Bonds    65


CHAPTER 6    
THE MECHANICíS LIEN IN NEVADA    69

I.   The Requirements to Hold and Enforce a Lien Claim    70
A.    Mechanicís Lien Enforcement    70
B.    The Lien on Property and the Amount of the Lien    70
C.    The Perfection of the Lien    73
II.    The Enforcement of the Lien    86
A.    Initiating a Foreclosure Action    86
B.    Judgment Upon A Lien Claim    87
C.    Duties of a Prime Contractor    88
D.    Execution Upon Judgment    89
E.    Time Limit to Initiate Lien Foreclosure Action/Time Extensions    89
III.   The Priority of the Lien    90
IV.   The Notice of Non-Responsibility and Requirements for Lesseeís Undertaking Improvements    91
V.   Duties of Lessee/Tenant Improvement Bonds    92
VI.   Use of Surety Bonds as Substitute Collateral for Real Properties    95
A.    The Release of the Lien by Posting a Surety Bond    95
B.    Action Filed Against Surety Bond    100
VII.   Waiver or Release of Rights of a Lien Claimant    102
VIII.   Frivolous or Excessive Notice of Lien    112
IX.    Priority of Mechanicís Liens    114
A.    Equitable Subrogation    115
B.    Subordination Agreements    119


CHAPTER 7    
PRIVATE WORKS PAYMENT REMEDY - PROMPT PAYMENT ACT    127

I.   Private Work Prompt Payment Act    127
A.    Payment of Prime Contractors    128
B.    Payment of Lower-Tiered Subcontractors    131


CHAPTER 8    
RESIDENTIAL CONSTRUCTION    137

I.   Actions Resulting From Constructional Defect: Conditions And Limitations Relating to the Chapter 40 Process    137
A.    Definitions    137
B.    Liability of the Contractor    138
C.    Pre-Litigation    138
II.   Litigation: The Lawsuit    144
A.    Preference Given to Trial of Action    144
B.    Disclosures Between Claimant & Contractor    145
C.    Limitations On Recovery    145
III.   Statutes Of Limitation Or Repose And Tolling    147
IV.   Other Issues Presented in Chapter 40 Matters    148
A.    When A Claimant Rejects A Reasonable Settlement    148
B.    Disclosures Between Claimant And Prospective Purchaser    148
C.    Presenting Claim to Insurer    149
D.    Submission of Questions Concerning Defects to the State Contractorís Board    149


CHAPTER 9    
CONSTRUCTION LENDING    153

I.   Construction Lending Industry    153
A.    Representation of the Construction Lender    154
II.   The Construction Loan Agreement    154
A.    Conformance With the Construction Loan and Take Out Commitments    154
B.    Factual Background to the Project    155
C.    Loan Amount and Repayment    156
D.    Interest Rate    156
E.    Recourse Lending    157
F.    Lien Priority Over Prior Encumbrances    157
G.    Closing the Construction Loan    162
H.    Construction Loan Disbursements    163
I.    Methods of Loan Disbursement    165
J.    Liability for Construction Defects    167
K.    The Defaulting Developer    167
L.    Workout Negotiations    167
M.    The Final Loan Takeout    170


CHAPTER 10    
NEVADA OCCUPATIONAL SAFETY AND HEALTH    173

I.   Nevada OSHA    173
A.    Overview    173
B.    Violations    180
C.    Enforcement    181
D.    Occupational Safety and Health Review Board    182
E.    Penalties    183


CHAPTER 11    
DOING BUSINESS WITH DISADVANTAGED BUSINESS ENTERPRISES    188

I.   Policy/Application    189
A.    Definitions    190
II.   Administration    191
III.   Payment Provisions    193
IV.   Enforcement of DBE Programs    194
A.    Management    198
B.    Workforce    199
C.    Materials    202
D.    Performance    204
V.   Measuring DBE Participation    208
VI.   Certification Process    209

VII.   Sanctions    217


CHAPTER 12    
INDEMNIFICATION IN NEVADA    222

I.   Types of Indemnity    222
A.    Type I Indemnity    223
B.    Type II Indemnity    223
C.    Type III Indemnity    224
II.   Contractual Indemnity    224
III.   Equitable Indemnity    232

CHAPTER 13    
ALTERNATIVE DISPUTE RESOLUTION    235

I.   Nevadaís Mandatory Court Annexed Arbitration Program    235
A.    Proceedings Before the Arbitrator    237
B.    Trial de Novo    238
II.   Private Arbitration Pursuant to Agreement    238
A.    Arbitration Agreement    239
B.    Compelling Arbitration    241
C.    Arbitration Proceedings    241


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