A Contractor’s Guide for Developing Contracts in Nevada

When beginning a new construction project, being on the same page as your client is crucial. A written contract ensures both parties are in sync and protects contractors and clients from legal issues should anything go awry. While developing a contract may seem intimidating, state regulatory boards often provide clear directions on what you should include in one.

In Nevada, for example, there are quite a few laws governing single-family residential projects. The Nevada State Contractors Board (NSCB) outlines these rules in detail, and any written contracts that do not include these provisions will not hold up in a court of law. Read on to learn about what contractors should include in a Nevada contract when working on residential projects.

Required Disclosures for Subcontractors and Suppliers

In Nevada, contractors are required to provide written disclosures to clients upon entering into a contract on a project. General building contractors must provide homeowners with the name, license number, business address, and telephone number of any subcontractors on the project and anyone providing materials over $500 in value.

Some additional disclosures that pertain to subcontractors and suppliers are also required. Contractors must provide a written lien rights notice and a Residential Construction Recovery Fund Notice, which are outlined in further detail on the NSCB website.

Payment Information

Another critical aspect of a Nevada contract is payment terms. Several clauses relating to payment must be included in a contract under Nevada law. Firstly, Nevada law prohibits a “no lien” clause in contracts, meaning claimants cannot waive their lien rights.

Additionally, Nevada’s “prompt pay laws” (payments must be made within 21 days after the client receives the request) become the default pay schedule for private projects if not otherwise outlined in the contract. (For public projects, payment cannot exceed 30 days.) Be sure to outline payment terms and conditions in your contract per NSCB regulations.

Potential Requests

The NSCB does not give other specifics regarding what must be included in contracts but offers several recommendations to homeowners. It suggests that contractors supply clients with a payment and performance bond (separate from the required surety bond filed with the NSCB). It also suggests that clients make payments through a third-party service for additional protection.

Additionally, the NSCB recommends that clients ask contractors, subcontractors, laborers, and suppliers to sign lien release forms as various aspects of the project are completed. All of these recommendations can potentially be included in a written contract, which may be filed with the county recorder for both parties’ protection.

 

 

Note: Consult a legal professional in connection with the drafting of any legal documents which include contracts.