Construction Frequently
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Preliminary Notice FAQ

A Nevada Notice of Right to Lien is a letter sent by a contractor or supplier to the property owner at the start of a construction project. In many states, a preliminary notice is required to be sent in order to secure the right to lien.

With the exception of prime contractors, all parties involved in a construction project in Nevada must send a Notice of Right to Lien. The notice should be delivered to the property owner and prime contractor.

All parties involved in a construction project in Nevada except a prime contractor are required to send a Notice of Right to Lien within 31 days after first furnishing labor, services or materials.

A Notice of Right to Lien may be sent anytime before a mechanics lien is recorded, notwithstanding the recommendation of sending one within 31 days of first furnishing labor or materials. 

However, with this delay, only materials, services and labor supplied during the 31 days prior to sending the notice and all materials, services and labor supplied thereafter until project completion are covered by a mechanics lien.

Intent To File FAQ

A Nevada notice of intent to lien is sent before the filing of a mechanics lien becomes necessary. Although only a number of states require that this notice be sent, many construction participants send a notice of intent to lien as an uncostly way to have payments for invoices settled.

If the project is residential, yes, you are required to send a Nevada Notice of Intent to Lien. Being sent 15 days before filing a mechanics lien, a Notice of Intent to Lien extends the filing period by 15 days.

A Nevada Notice of Intent should be sent 15 days before filing a mechanics lien.

Failure to send a Nevada Notice of Intent to Lien may invalidate a mechanics lien. It is possible that it will not invalidate the lien.

Mechanics Lien FAQ

A Nevada mechanics lien is an effective tool that helps make sure you will be paid for the construction materials and/or labor you supplied. It is a legal claim that guarantees payment for contractors and suppliers.

This means that if you file a valid mechanics lien on a project you worked on in Nevada and weren’t paid for your work, you have the right to enforce the lien through a lawsuit. This enforcement action can either prompt the client to settle or force the sale of the property. The proceeds of the sale will be used to settle your unpaid bill.

If you successfully file a Nevada mechanics lien, you have an interest in the improved property. When a mechanics lien is filed on the property you worked on, the property becomes collateral for uncollected payments.

Most construction participants in Nevada have mechanics lien rights.¹ These include contractors, subcontractors, suppliers, equipment lessors, engineers, architects, surveyors, geologists, and consultants performing work on-site. 

Suppliers, however, can file a mechanics lien only if the materials they provided were used and incorporated into the project, and not simply delivered to the site.

A party who has no relevant license and took on a job in a project that requires such a license cannot file a mechanics lien in Nevada

A Nevada mechanics lien must be filed within 90 days after last supplying labor, services or materials or within 90 days after the project is completed, whichever is later.² 

This filing period may be reduced to 40 days if a Notice of Completion is filed.

A mechanics lien in Nevada will expire after the 6 months within which action is required to enforce it.³

The following pieces of information must appear on a Nevada mechanics lien form:

  • The amount claimed after deducting all just credits and offsets
  • The name of the property owner
  • The name of the person who employed the claimant or to whom the claimant provided materials or equipment
  • A concise statement of the contract’s terms of payment
  • A description of the property subject to the mechanics lien

If a job performed in a project requires a license, you must have such a license in order to have the right to file a mechanics lien.

Nevada has legislatively designed lien waiver forms which it requires involved parties to use. Using a form that does not conform to this design will invalidate a mechanics lien and this could lead to legal woes. 

Furthermore, Nevada state law disallows contractors and suppliers from waiving their right to lien in contract.

When payment has been settled, the claimant must file a lien release within 10 days of satisfaction upon request of the owner. The lien release should be filed in the county recorder office where the mechanics lien was filed.

Pay if paid clauses are unenforceable in Nevada by statute and as against public policy.

It is not clear if pay when paid clauses are enforceable in the state.

References:

https://www.leg.state.nv.us 

Nevada Construction Lien Law

¹ Nevada Revised Statutes Section 108.2214

² Nevada Revised Statutes Section 108.226

³ Nevada Revised Statutes Section 108.223

Handle.com provides answers to Frequently Asked Questions (FAQs) to contractors and others who are seeking information regarding preliminary notices, intent to file, mechanics lien, and other construction questions. These are provided for informational purposes only, and we cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options, selection of forms or strategies.

Nevada documents

Intent to File

Show you’re serious about filing a mechanics lien without having to pay filing fees.

Mechanics Lien

Still chasing payments on a construction project? File a Mechanics Lien on the project to recoup unpaid labor and materials.

Preliminary Notice

Secure rights to file a lien and notify parties you’re on the job. Not filing a preliminary notice may result in lost revenue in case of a delinquent client.

Waiver

Waivers release your right to file a mechanics lien in case of non-payment. Some have conditions so ensure you're sending the correct lien waiver type.