License Bond Claims Where the Bond Principal Did Not Use Its License

The Surety is often confronted with bond claims, where a license bond is in effect and where the principal did not use its license. Typically, these claims fall into three categories: The license was not yet in effect, was never in effect or was suspended or revoked; The principal operated out-of-state, where the license was … Continue reading “License Bond Claims Where the Bond Principal Did Not Use Its License”

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“We Cannot Pay You Because We Haven’t Been Paid”

Pay-if-Paid Clauses are Unenforceable in Nevada Many subcontracts submitted to subcontractors by general contractors (“GC”) contain so-called ‘pay-if- paid’ clauses, which essentially tell the subcontractor that he will get paid by the GC only after the GC has been paid by the project owner for the work performed by the subcontractor. The Nevada Supreme Court … Continue reading ““We Cannot Pay You Because We Haven’t Been Paid””

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The Continued Expansion of the Nevada DMV License Bond Statute

In 2017, the Nevada Legislature expanded the scope of the DMV Bond Statute to cover additional statutory causes of action. Before, the bond covered breach of a consumer contract, deceptive trade practice, fraud, fraudulent representation, and statutory deceptive trade practice as defined in NRS 598. The Bond statute now also covers violations of any of … Continue reading “The Continued Expansion of the Nevada DMV License Bond Statute”

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Is a Nevada Contractor’s License Really Required?

Not properly licensed?  Then you are not entitled to payment.  Or are you?  Despite strong statutory language, the Nevada Supreme Court continues to allow unlicensed contractors to be paid in certain circumstances. The primary purpose of Nevada’s licensing statutes is to protect the public against both faulty construction and financial irresponsibility. MGM Grand Hotel, Inc. … Continue reading “Is a Nevada Contractor’s License Really Required?”

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Can they make that claim and succeed?

Claims against Nevada Contractor’s License Bonds in Cases where the Contractor did not Use his License Periodically, the surety is confronted with claims against a contractor’s license bond, although the contractor did not use his license in circumstances leading up to the claim. These claims fall essentially into three categories: The contractor did not use … Continue reading “Can they make that claim and succeed?”

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Statutory Liens: Mechanic’s and Materialmen’s liens

The timing and approach to record notices of liens are crucial in the construction business. Nevada revised statute 108 explains how and when these should be done. Here you can find a basic Mechanics’ lien timeline with the five most important steps of action: Serve Notice of Right to Lien (Preliminary Notice)– Within 31 days … Continue reading “Statutory Liens: Mechanic’s and Materialmen’s liens”

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Industry Reminder: Idaho Public Contracts Bond Act

Under the Idaho Public Contracts Bond Act, Idaho Code Ann. 54–1925, et. al., written notice of a payment bond claim must be provided by a sub–subcontractor claimant within ninety days of the last labor or supply of material by the claimant.  Idaho Code Ann. 54-1927.  A lawsuit to enforce the claim must be filed within one year from the last day the claimant provided the labor or materials at issue. Id.

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Are Interest and Late Fees Recoverable Under a Nevada Contractors License Bond? 

The license bond statute specifically states that the bond is for the benefit, among others, of one who supplies “materials or equipment for the construction covered by the contract”.  NRS 624.273(1)(c).  The statute provides for the recovery of “the amount of damage the person suffered to the extent covered by the bond . . . … Continue reading “Are Interest and Late Fees Recoverable Under a Nevada Contractors License Bond? “

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They Are Claiming What?

Claims Against A Contractor’s License Bond, Where The Construction Project At Issue Is Out-Of-State, With Specific References To Nevada And Utah Law. Among the more unusual license bond claims are the ones where the contractor has a license bond in one state, and where the construction project at issue is in another state. For example, … Continue reading “They Are Claiming What?”

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AAA Arbitration

Kurt C. Faux has been recognized and accepted as part of the panel of the American Arbitration Association. AAA arbitrators help speed up the process of resolution through private out-of-court resolution or settlement. Congratulations Kurt!

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