To ensure that subcontractors, suppliers and laborers are paid on federal works projects of more than $100,000.00, the federal government requires that the prime contractor post a payment bond pursuant to the Miller Act, 41 U.S.C. 3131-3134.   The Miller Act, in essence, supplants mechanic’s liens, which are not available on federal projects. To qualify as … Continue reading “Know Your Rights to Payment on a Federal Works Project”

By Kurt Faux & Willi Siepmann Contractor licensing in Nevada is controlled by the provisions of Nevada Revised Statute (NRS) 624. It provides for general licenses and specialty licenses, and in many instances, a contractor will have general and several specialty licenses such as carpentry, roofing, plumbing and electrical. Unless waived due to the contractors length of time … Continue reading “A Primer on Handling Nevada Contractor License Bond Claims”

The Nevada Legislature modified bonding requirements in Assembly Bill No. 39 (AB 39) concerning construction, remodeling, repair, or improvements to existing, completed single-family residences that are occupied by their owners.  Bonds for such residential contractors in the penal sum of $100,000 may be required if the contractor is not exempted.  AB is now the law, … Continue reading “Assembly Bill No. 39: Key Highlights for Sureties in Nevada”

NV Supreme Court decides case on positive employee drug tests by Jordan Faux The Nevada Supreme Court held last year that an employer is not required to accommodate an employee’s use of recreational marijuana even if that use occurs outside of work and the employee is not under the influence at work. In Ceballos v. NP … Continue reading ““Cannabis-ness” fire an employee for smoking weed?”

by Kurt Faux & Willi Siepmann In most cases, the maximum exposure of the Surety is the penal sum of the bond. However, there are exceptions when the surety litigates a bond claim and ultimately loses against the claimant. Offer of Judgment Under the Nevada Offer of Judgment rules, a claimant may recover attorney’s fees … Continue reading “License Bond Penal Sum Issues in Nevada”

For most contractors in Nevada, the Nevada State Contractors Board (“NSCB”) requires the contractor to obtain a license bond or to post a cash bond in order to get a contractor’s license. These bonds vary in amounts between $5,000 and $50,000, with those amounts, which are also known as ‘penal sums’ set by the NSCB depending on the license history of the contractor and the license amount. This article will address the following questions:

Attempts to Circumvent the Nevada DMV Dealer Bond Coverage by Financial Institutions Nevada law requires that motor vehicle dealers in Nevada post a $100,000 surety bond. NRS 482.345. Its metes and bounds are determined by statute, specifically NRS 482.345. Per the statute, the bond is “for the use and benefit of the consumer…” NRS 482.345(5). … Continue reading “The Assignment Scheme”

The Legislature passed revisions to NRS 624 last year that forbids contractors from performing work using independent contractors.  This goes both for work that requires a contractor’s license and work that does not require a contractor’s license.  For work that does require a contractor’s license, the work can be performed by the contractor, the contractor’s … Continue reading “AB 227: Home Depot Runs Can’t Include Picking Up Labor”

By Willi Siepmann In Nevada only a “consumer” has standing to assert a claim against a motor vehicle dealer bond.  The bond is only “for the use and benefit of the consumer….” NRS 482.345(5).  The term “consumer” is defined as “any person who comes into possession of a vehicle as a final user for any … Continue reading “Can a Lender Recover Against a Nevada DMV Bond as Assignee of a Consumer?”

Many construction subcontracts contain so-called “pay-if-paid” clauses by which the higher-tiered contractor seeks to protect itself from claims by lower-tiered contractors, when the higher-tiered contractor has not been paid by the project owner for whatever reason. Such a clause typically reads like this: Receipt of payment by the Contractor from the Owner for the Subcontract … Continue reading “New Court Decision Regarding Enforcement of “Pay-if-Paid” Clauses in Construction Subcontracts in Nevada”