EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 338 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 33, inclusive, of this act.

1-3 Sec. 2. As used in NRS 338.160, 338.165 and 338.170 and sections 2

1-4 to 33, inclusive, of this act, unless the context otherwise requires, the

1-5 words and terms defined in sections 3 to 12, inclusive, of this act have the

1-6 meanings ascribed to them in those sections.

1-7 Sec. 3. "Contract" means a written contract entered into between a

1-8 contractor and a public body for the provision of labor, materials,

1-9 equipment or supplies for a public work.

1-10 Sec. 4. "Contractor" means a person who:

1-11 1. Is licensed pursuant to the provisions of chapter 624 of NRS; and

1-12 2. Contracts with a public body to provide labor, materials or services

1-13 for a public work.

1-14 The term does not include a supplier or a person who provides day labor.

2-1 Sec. 5. "Progress bill" means a bill for a portion of the supplies,

2-2 work performed or services provided by a contractor, subcontractor or

2-3 supplier for a public work.

2-4 Sec. 6. "Progress payment" means the payment for a portion of the

2-5 supplies, work performed or services provided by a contractor,

2-6 subcontractor or supplier for a public work.

2-7 Sec. 7. "Retainage" means the amount authorized to be withheld

2-8 from a progress payment pursuant to the provisions of NRS 338.160,

2-9 338.170 or section 24 of this act.

2-10 Sec. 8. "Retainage bill" means a bill for the amount authorized to be

2-11 withheld from a progress payment pursuant to the provisions of NRS

2-12 338.160, 338.170 or section 24 of this act.

2-13 Sec. 9. "Retainage payment" means the payment of the amount

2-14 authorized to be withheld from a progress payment pursuant to the

2-15 provisions of NRS 338.160, 338.170 or section 24 of this act.

2-16 Sec. 10. "Subcontract" means a written contract entered into

2-17 between:

2-18 1. A contractor and a subcontractor or supplier; or

2-19 2. A subcontractor and another subcontractor or supplier,

2-20 for the provision of labor, materials, equipment or supplies for a public

2-21 work.

2-22 Sec. 11. "Subcontractor" means a person who:

2-23 1. Is licensed pursuant to the provisions of chapter 624 of NRS; and

2-24 2. Contracts with a contractor, another subcontractor or a supplier to

2-25 provide labor, materials or services for a public work.

2-26 The term does not include a supplier or a person who provides day labor.

2-27 Sec. 12. "Supplier" means a person who provides materials,

2-28 equipment or supplies for a public work.

2-29 Sec. 13. Interest that is required to be paid on:

2-30 1. The retainage accrues from the date the retainage is withheld until

2-31 the date the retainage is paid to the person from whom the retainage was

2-32 withheld.

2-33 2. The amount that is withheld from a progress payment that is not

2-34 retainage accrues from the date the progress payment is required to be

2-35 made pursuant to section 18, 21 or 26 of this act until the date the

2-36 amount withheld is paid to the person from whom it was withheld.

2-37 Sec. 14. 1. A public body shall pay or cause to be paid to a

2-38 contractor the retainage, the amount withheld from a progress payment

2-39 or retainage payment pursuant to section 15 of this act, and any interest

2-40 accrued thereon within 20 days after:

2-41 (a) The public body or a person acting with the authority of the public

2-42 body occupies or begins use of the public work or a portion of the public

2-43 work;

3-1 (b) The public work or a portion of the public work is available for its

3-2 intended use;

3-3 (c) A notice of completion for the public work or a portion of the

3-4 public work is recorded as provided in NRS 108.228; or

3-5 (d) One or more buildings of a public work is partially occupied by or

3-6 available to the public body,

3-7 whichever occurs first. The amount paid must be in the proportion that

3-8 the value of the portion of the public work that is used, occupied or

3-9 available for its intended use bears to the total value of the public work.

3-10 2. The contractor shall give notice of the availability of the public

3-11 work to the public body on or before the date he claims the public work

3-12 became available.

3-13 Sec. 15. 1. Except as otherwise provided in section 14 of this act, a

3-14 public body may withhold from a progress payment or retainage payment

3-15 an amount sufficient to pay the expenses the public body reasonably

3-16 expects to incur because:

3-17 (a) The work that must be performed by the contractor is not

3-18 progressing according to the schedule set forth in the contract;

3-19 (b) An uncorrected, material defect exists in the work performed by

3-20 the contractor that has been specified in writing by the public body, an

3-21 architect, an engineer or an inspector of a public body as not conforming

3-22 to the plans and specifications of the public work;

3-23 (c) A civil action concerning the work performed by the contractor on

3-24 the public work has been commenced;

3-25 (d) The work to be performed by the contractor cannot be completed

3-26 for the amount of the unpaid balance of the contract;

3-27 (e) The amount of the unpaid balance of the contract will be exceeded

3-28 if the public body pays for the supplies, materials and equipment as

3-29 provided for in subsection 2 of NRS 338.160; or

3-30 (f) The contractor has failed to provide the public body with a release

3-31 and waiver of the lien rights of the contractor. The release and waiver of

3-32 lien rights is conditional for the purpose of receiving payment and

3-33 becomes unconditional when the contractor receives payment.

3-34 2. A public body shall, within 20 days after it receives a progress bill

3-35 or retainage bill from a contractor, give written notice to the contractor

3-36 of any amount that will be withheld pursuant to this section. The written

3-37 notice must set forth:

3-38 (a) The amount of the progress payment or retainage payment that

3-39 will be withheld from the contractor;

3-40 (b) The reason the public body will withhold that amount; and

4-1 (c) The action that must be taken by the contractor to receive the

4-2 amount withheld.

4-3 The written notice must be accompanied by a notarized affidavit signed

4-4 by the public body and evidence of the reason set forth in the notice for

4-5 withholding the amount.

4-6 3. The public body shall pay to the contractor, within 20 days after

4-7 the contractor corrects the condition set forth pursuant to subsection 2 as

4-8 the reason for the withholding, the amount withheld by the public body

4-9 and any interest accrued pursuant to section 13 of this act.

4-10 Sec. 16. 1. If the labor commissioner believes that an employee of

4-11 a contractor has an enforceable claim for wages against the contractor,

4-12 the labor commissioner may require the public body to withhold from

4-13 any payment owed to the contractor pursuant to the provisions of NRS

4-14 338.160, 338.165 and 338.170 and sections 2 to 33, inclusive, of this act,

4-15 an amount of money equal to the amount claimed by the employee. The

4-16 public body shall pay the money to the labor commissioner.

4-17 2. If, after notice and a hearing conducted by the labor

4-18 commissioner, the claim is resolved in favor of:

4-19 (a) The employee, the labor commissioner shall pay the amount to the

4-20 employee.

4-21 (b) The contractor, the labor commissioner shall pay the amount to

4-22 the contractor.

4-23 Sec. 17. A contractor shall give to the public body written notice of

4-24 the amount that is withheld or will be withheld from a progress payment

4-25 to a subcontractor or supplier, other than retainage, before or at the time

4-26 the contractor submits a progress bill to the public body which would

4-27 otherwise include that amount. The notice must set forth the reason for

4-28 withholding that amount. The progress bill must not include the amount

4-29 that is withheld or will be withheld by the contractor from the

4-30 subcontractor or supplier.

4-31 Sec. 18. 1. If a public body receives:

4-32 (a) A progress bill or retainage bill, fails to give a contractor written

4-33 notice of any withholding in the manner set forth in subsection 2 of

4-34 section 15 of this act and does not pay the contractor within 20 days after

4-35 receiving the progress bill or retainage bill; or

4-36 (b) A contractor’s written notice of correction of the condition set

4-37 forth pursuant to subsection 2 of section 15 of this act as the reason for

4-38 the withholding, a notarized affidavit signed by the contractor and

4-39 evidence that the correction has been made, and fails to, within 20 days

4-40 after receiving the notice of correction, affidavit and evidence:

5-1 (1) Pay the amount of the progress payment or retainage payment

5-2 that was withheld from the contractor; or

5-3 (2) Object to the scope and manner of the correction in a written

5-4 statement that sets forth the reason for the objection and is accompanied

5-5 by a notarized affidavit signed by the public body,

5-6 the public body shall pay to the contractor, in addition to the entire

5-7 amount of the progress bill or retainage bill or any unpaid portion

5-8 thereof, interest from the 20th day on the amount delayed, at a rate equal

5-9 to the amount provided for in subsection 3 of NRS 338.160, until

5-10 payment is made to the contractor.

5-11 2. If the public body objects pursuant to subparagraph (2) of

5-12 paragraph (b) of subsection 1, it shall pay to the contractor an amount

5-13 that is proportionate to the value of the corrections to which the public

5-14 body does not object.

5-15 Sec. 19. Within 5 days after a public body receives a written request

5-16 from a subcontractor or supplier of the contractor, the public body shall

5-17 notify the subcontractor or supplier in writing of the following:

5-18 1. The date the public body made a specified progress payment or

5-19 retainage payment to a contractor;

5-20 2. Whether the public body has paid the entire amount of a specified

5-21 progress payment or retainage payment to the contractor; and

5-22 3. The amount withheld by the public body from a specified progress

5-23 payment or retainage payment to the contractor, if any.

5-24 Sec. 20. 1. A contractor may withhold from a progress payment or

5-25 retainage payment an amount sufficient to pay the expenses the

5-26 contractor reasonably expects to incur because:

5-27 (a) The work that must be performed by the subcontractor is not

5-28 progressing according to the schedule set forth in the subcontract;

5-29 (b) An uncorrected, material defect exists in the work performed by

5-30 the subcontractor that has been specified in writing by the public body,

5-31 contractor, an architect, an engineer or inspector of a public body as not

5-32 conforming to the plans and specifications of the public work;

5-33 (c) A civil action has been commenced concerning:

5-34 (1) The work performed by the subcontractor on the public work; or

5-35 (2) The supplies, materials and equipment provided by the supplier

5-36 for the public work;

5-37 (d) The work to be performed by the subcontractor cannot be

5-38 completed for the amount of the unpaid balance of the subcontract;

5-39 (e) The unpaid balance of the subcontract will be exceeded if the

5-40 contractor pays for the supplies, materials and equipment as provided for

5-41 in subsection 2 of NRS 338.165; or

6-1 (f) The subcontractor or supplier has failed to provide the contractor

6-2 with a release and waiver of the lien rights of the subcontractor or

6-3 supplier. The release and waiver of lien rights is conditional for the

6-4 purpose of receiving payment and becomes unconditional when the

6-5 subcontractor or supplier receives payment.

6-6 2. A contractor shall, within 10 days after he receives:

6-7 (a) A progress payment or retainage payment from the public body for

6-8 an amount that is less than the amount set forth in the applicable

6-9 progress bill or retainage bill; or

6-10 (b) A progress bill or retainage bill from a subcontractor or
6-11 supplier,

6-12 give written notice to the subcontractor or supplier of any amount that

6-13 will be withheld pursuant to this section.

6-14 3. The written notice must:

6-15 (a) Set forth:

6-16 (1) The amount of the progress payment or retainage payment that

6-17 will be withheld from the subcontractor or supplier;

6-18 (2) The reason the contractor will withhold that amount; and

6-19 (3) The action that must be taken by the subcontractor or supplier

6-20 to receive the amount withheld.

6-21 (b) Be accompanied by a notarized affidavit signed by the contractor

6-22 and evidence of the reason set forth in the notice for withholding the

6-23 amount.

6-24 4. The contractor shall pay to the subcontractor or supplier the

6-25 amount withheld by the public body and the contractor and any interest

6-26 accrued pursuant to section 13 of this act, within 10 days after:

6-27 (a) The subcontractor or supplier corrects the condition set forth

6-28 pursuant to subsection 2 as the reason for the withholding; or

6-29 (b) The public body pays to the contractor the amount withheld,

6-30 whichever occurs later.

6-31 Sec. 21. 1. If a contractor makes payment to a subcontractor or

6-32 supplier more than 10 days after the occurrence of any of the following

6-33 acts or omissions:

6-34 (a) The contractor fails to pay the subcontractor or supplier in

6-35 accordance with the provisions of subsection 1 of NRS 338.165;

6-36 (b) The contractor fails to give the subcontractor or supplier the

6-37 written notice of any withholding as required by subsection 2 of section

6-38 20 of this act; or

6-39 (c) The contractor receives a subcontractor’s or supplier’s written

6-40 notice of correction of the condition set forth pursuant to subsection 3 of

6-41 section 20 of this act as the reason for the withholding, a notarized

7-1 affidavit signed by the subcontractor or supplier and evidence that the

7-2 correction has been made, and fails to, within 10 days after receiving the

7-3 notice of correction, affidavit and evidence:

7-4 (1) Pay the amount of the progress payment or retainage payment

7-5 that was withheld and any interest accrued pursuant to section 13 of this

7-6 act; or

7-7 (2) Object to the scope and manner of the correction in a written

7-8 statement that sets forth the reason for the objection and is accompanied

7-9 by a notarized affidavit signed by the contractor,

7-10 the contractor shall pay to the subcontractor or supplier, in addition to

7-11 the entire amount of the progress bill or the retainage bill or any unpaid

7-12 portion thereof, interest from the 10th day on the amount delayed, at a

7-13 rate equal to the lowest daily prime rate at the three largest banks or

7-14 other financial institutions of the United States on the date the contract

7-15 was executed plus 2 percent, until payment is made to the subcontractor

7-16 or supplier.

7-17 2. If the contractor objects pursuant to subparagraph (2) of

7-18 paragraph (c) of subsection 1, the contractor shall pay to the

7-19 subcontractor or supplier an amount that is proportionate to the value of

7-20 the corrections to which the contractor does not object.

7-21 Sec. 22. Within 5 days after a contractor receives a written request

7-22 from a subcontractor or supplier of his subcontractor or supplier, he

7-23 shall notify the subcontractor or supplier of his subcontractor or supplier

7-24 in writing of the following:

7-25 1. The date the contractor made a specified progress payment or

7-26 retainage payment to his subcontractor or supplier;

7-27 2. Whether the contractor has paid the entire amount of a specified

7-28 progress payment or retainage payment to his subcontractor or supplier;

7-29 and

7-30 3. The amount withheld by the contractor from a specified progress

7-31 payment or retainage payment to his subcontractor or supplier, if any.

7-32 Sec. 23. Except as otherwise provided in sections 24, 25 and 26 of

7-33 this act:

7-34 1. Each subcontractor shall disburse money paid to him pursuant to

7-35 this chapter, including any interest which he receives, to his

7-36 subcontractors and suppliers within 10 days after he receives the money,

7-37 in direct proportion to the subcontractors’ and suppliers’ basis in the

7-38 progress bill or retainage bill and any accrued interest thereon.

7-39 2. A subcontractor shall make payments to the subcontractors and

7-40 suppliers equal to the payments paid by the contractor to him for the

7-41 supplies, materials and equipment that:

8-1 (a) Have been delivered and stored at the site of the public work by his

8-2 subcontractor or supplier for use in the construction, repair or

8-3 reconstruction of the public work;

8-4 (b) Have been delivered and stored at a location specified in the

8-5 subcontract by his subcontractor or supplier for use in the construction,

8-6 repair or reconstruction of the public work;

8-7 (c) Are in short supply; or

8-8 (d) Were specially made for the public work,

8-9 within 10 days after the subcontractor has received a progress payment

8-10 from the contractor for those supplies, materials and equipment.

8-11 Sec. 24. 1. If a subcontractor and another subcontractor or

8-12 supplier enter into a subcontract for a public work, the subcontractor

8-13 may withhold as retainage not more than 10 percent from the amount of

8-14 any progress payment due under a subcontract which is made before 50

8-15 percent of the work has been completed under the subcontract. The

8-16 subcontractor shall pay any additional progress payments due under the

8-17 subcontract without withholding any additional retainage if, in the

8-18 opinion of the subcontractor, satisfactory progress is being made in the

8-19 work under the subcontract. The payment must be equal to that paid by

8-20 the contractor to him for the work performed or supplies provided by his

8-21 subcontractor or supplier.

8-22 2. If the subcontractor receives a payment of interest earned on the

8-23 retainage or an amount withheld from a progress payment, he shall,

8-24 within 10 days after receiving the money, pay to each of his

8-25 subcontractors or suppliers that portion of the interest received from the

8-26 contractor which is attributable to the retainage or amount withheld from

8-27 a progress payment by him to his subcontractor or supplier.

8-28 Sec. 25. 1. A subcontractor may withhold from a progress payment

8-29 or retainage payment an amount sufficient to pay the expenses the

8-30 subcontractor reasonably expects to incur because:

8-31 (a) The work that must be performed by his subcontractor is not

8-32 progressing according to the schedule set forth in the subcontract;

8-33 (b) An uncorrected, material defect exists in the work performed by

8-34 his subcontractor that has been specified in writing by him, the public

8-35 body, contractor, an architect, an engineer or inspector of a public body

8-36 as not conforming to the plans and specifications of the public work;

8-37 (c) A civil action has been commenced concerning:

8-38 (1) The work performed by his subcontractor on the public work; or

8-39 (2) The supplies, materials and equipment provided by his supplier

8-40 for the public work;

8-41 (d) The work to be performed by his subcontractor cannot be

8-42 completed for the amount of the unpaid balance of the subcontract;

9-1 (e) The unpaid balance of the subcontract will be exceeded if he pays

9-2 for the supplies, materials and equipment as provided for in subsection 2

9-3 of section 23 of this act; or

9-4 (f) His subcontractor or supplier has failed to provide him with a

9-5 release and waiver of the lien rights of the subcontractor or supplier. The

9-6 release and waiver of lien rights is conditional for the purpose of

9-7 receiving payment and becomes unconditional when the subcontractor or

9-8 supplier receives payment.

9-9 2. A subcontractor shall, within 10 days after he receives:

9-10 (a) A progress payment or retainage payment from a contractor for an

9-11 amount that is less than the amount set forth in the applicable progress

9-12 bill or retainage bill; or

9-13 (b) A progress bill or retainage bill from his subcontractor or
9-14 supplier,

9-15 give written notice to his subcontractor or supplier of any amount that

9-16 will be withheld pursuant to this section.

9-17 3. The written notice must:

9-18 (a) Set forth:

9-19 (1) The amount of the progress payment or retainage payment that

9-20 will be withheld from his subcontractor or supplier;

9-21 (2) The reason the subcontractor will withhold that amount; and

9-22 (3) The action that must be taken by his subcontractor or supplier

9-23 to receive the amount withheld.

9-24 (b) Be accompanied by a notarized affidavit signed by the

9-25 subcontractor and evidence of the reason set forth in the notice for

9-26 withholding the amount.

9-27 4. The subcontractor shall pay to his subcontractor or supplier the

9-28 amount withheld by the contractor and any interest accrued pursuant to

9-29 section 13 of this act, within 10 days after:

9-30 (a) His subcontractor or supplier corrects the condition set forth

9-31 pursuant to subsection 2 as the reason for the withholding; or

9-32 (b) The contractor pays to him the amount withheld,

9-33 whichever occurs later.

9-34 Sec. 26. 1. If a subcontractor makes payment to his subcontractor

9-35 or supplier more than 10 days after the occurrence of any of the

9-36 following acts or omissions:

9-37 (a) The subcontractor fails to pay his subcontractor or supplier in

9-38 accordance with the provisions of subsection 1 of section 23 of this act;

9-39 (b) The subcontractor fails to give his subcontractor or supplier the

9-40 written notice of any withholding as required by subsection 2 of section

9-41 25 of this act; or

10-1 (c) The subcontractor receives a written notice of correction of the

10-2 condition set forth pursuant to subsection 3 of section 25 of this act as

10-3 the reason for the withholding from his subcontractor or supplier, a

10-4 notarized affidavit signed by his subcontractor or supplier, and evidence

10-5 that the correction has been made, and fails to, within 10 days after

10-6 receiving the notice of correction, affidavit and evidence:

10-7 (1) Pay the amount of the progress payment or retainage payment

10-8 that was withheld and any interest accrued pursuant to section 13 of this

10-9 act; or

10-10 (2) Object to the scope and manner of the correction in a written

10-11 statement that sets forth the reason for the objection and is accompanied

10-12 by a notarized affidavit signed by him,

10-13 the subcontractor shall pay to his subcontractor or supplier, in addition

10-14 to the entire amount of the progress bill or the retainage bill or any

10-15 unpaid portion thereof, interest from the 10th day on the amount

10-16 delayed, at a rate equal to the lowest daily prime rate at the three largest

10-17 banks or other financial institutions of the United States on the date the

10-18 contract was executed plus 2 percent, until payment is made to his

10-19 subcontractor or supplier.

10-20 2. If the subcontractor objects pursuant to subparagraph (2) of

10-21 paragraph (c) of subsection 1, the subcontractor shall pay to his

10-22 subcontractor or supplier an amount that is proportionate to the value of

10-23 the corrections to which he does not object.

10-24 Sec. 27. Within 5 days after a subcontractor receives a written

10-25 request from a subcontractor or supplier of his subcontractor or supplier,

10-26 he shall notify the subcontractor or supplier of his subcontractor or

10-27 supplier in writing of the following:

10-28 1. The date the subcontractor made a specified progress payment or

10-29 retainage payment to his subcontractor or supplier;

10-30 2. Whether the subcontractor has paid the entire amount of a

10-31 specified progress payment or retainage payment to his subcontractor or

10-32 supplier; and

10-33 3. The amount withheld by the subcontractor from a specified

10-34 progress payment or retainage payment to his subcontractor or supplier,

10-35 if any.

10-36 Sec. 28. 1. A contractor who believes that the amount withheld by

10-37 the public body is not justified or is excessive may apply to the district

10-38 court of the county where the public work or a part thereof is located for

10-39 an order directing the public body to appear before the court to show

10-40 cause why the relief requested should not be granted.

10-41 2. A subcontractor or supplier who believes that the amount withheld

10-42 by the contractor or subcontractor is not justified or is excessive may

10-43 apply to the district court of the county where the public work or a part

11-1 thereof is located for an order directing the contractor or subcontractor

11-2 to appear before the court to show cause why the relief requested should

11-3 not be granted.

11-4 3. The motion must:

11-5 (a) Set forth the grounds upon which relief is requested; and

11-6 (b) Be accompanied by a notarized affidavit signed by the petitioner or

11-7 his attorney that sets forth the facts upon which the motion is based.

11-8 4. If the court orders a hearing based upon the motion, the petitioner

11-9 shall serve the notice of the motion and the order of the court on the

11-10 respondent within 3 days after the court issues the order. The court shall

11-11 conduct the hearing not less than 10 days and not more than 20 days

11-12 after the court issues the order for a hearing.

11-13 5. The order for a hearing must include a statement that, if the

11-14 respondent fails to appear at the time and place of the hearing, the court

11-15 will order the respondent to pay to the petitioner:

11-16 (a) The entire amount that was withheld by the respondent;

11-17 (b) Interest on the amount that was withheld by the respondent; and

11-18 (c) The costs incurred by the petitioner, including, without limitation,

11-19 his attorney’s fees.

11-20 6. If, when the motion is filed, there is a civil action pending between

11-21 the petitioner and the respondent, the motion must be consolidated into

11-22 the civil action.

11-23 7. If the court determines that:

11-24 (a) The amount withheld is not justified, the court shall order the

11-25 respondent to pay to the petitioner the amount that was withheld.

11-26 (b) The amount withheld is excessive, the court shall order the

11-27 respondent to pay to the petitioner an amount determined by the court.

11-28 (c) The amount withheld is justified, the court shall issue an order

11-29 approving the amount that was withheld by the respondent.

11-30 8. The proceedings conducted pursuant to the provisions of this

11-31 section do not affect any other rights or remedies provided by law.

11-32 Sec. 29. Each notice required pursuant to NRS 338.160, 338.165

11-33 and 338.170 and sections 2 to 33, inclusive, of this act must be:

11-34 1. Delivered personally; or

11-35 2. Sent by facsimile machine and delivered by registered or certified

11-36 mail.

11-37 Sec. 30. 1. A person may not waive or modify a right, obligation or

11-38 liability set forth in the provisions of NRS 338.160, 338.165 and 338.170

11-39 and sections 2 to 33, inclusive, of this act.

11-40 2. A condition, stipulation or provision in a contract or other

11-41 agreement that:

12-1 (a) Requires a person to waive a right set forth in the provisions of

12-2 NRS 338.160, 338.165 and 338.170 and sections 2 to 33, inclusive, of this

12-3 act; or

12-4 (b) Relieves a person of an obligation or liability imposed by the

12-5 provisions of NRS 338.160, 338.165 and 338.170 and sections 2 to 33,

12-6 inclusive, of this act,

12-7 is void.

12-8 Sec. 31. 1. Each payment required pursuant to the provisions of

12-9 NRS 338.160, 338.165 and 338.170 and sections 2 to 33, inclusive, of this

12-10 act may be made by personal delivery, electronic transfer, or registered or

12-11 certified mail.

12-12 2. A payment made by:

12-13 (a) Electronic transfer shall be deemed made when the money is

12-14 electronically transferred.

12-15 (b) A check or draft described in NRS 104.3104 shall be deemed made

12-16 when the check or draft is paid by the bank or other financial institution

12-17 upon which it is drawn.

12-18 Sec. 32. The court shall award to a contractor, subcontractor or

12-19 supplier who is the prevailing party in a civil action to recover an amount

12-20 that was required to be paid to him pursuant to the provisions of NRS

12-21 338.160, 338.165 and 338.170 and sections 2 to 33, inclusive, of this act

12-22 his actual damages, costs and attorney’s fees.

12-23 Sec. 33. The provisions of NRS 338.160, 338.165 and 338.170 and

12-24 sections 2 to 33, inclusive, of this act do not impair or affect the rights of

12-25 a contractor, subcontractor or supplier to whom any amount may be

12-26 owed for work performed or materials, equipment or supplies furnished

12-27 to maintain a civil action to recover that amount.

12-28 Sec. 34. NRS 338.010 is hereby amended to read as follows:

12-29 338.010 As used in this chapter:

12-41 chapters 616A to 617, inclusive, of NRS.

13-1 4. "Public body" means the state, county, city, town, school district or

13-2 any public agency of this state or its political subdivisions sponsoring or

13-3 financing a public work.

13-4 5. "Public work" means any project for the new construction, repair or

13-5 reconstruction of:

13-6 (a) A project financed in whole or in part from public money for:

13-7 (1) Public buildings;

13-8 (2) Jails and prisons;

13-9 (3) Public roads;

13-10 (4) Public highways;

13-11 (5) Public streets and alleys;

13-12 (6) Public utilities which are financed in whole or in part by public

13-13 money;

13-14 (7) Publicly owned water mains and sewers;

13-15 (8) Public parks and playgrounds;

13-16 (9) Public convention facilities which are financed at least in part with

13-17 public funds; and

13-18 (10) All other publicly owned works and property whose cost as a

13-19 whole exceeds $20,000. Each separate unit [which] that is a part of a

13-20 project is included in the cost of the project [for the purpose of

13-21 determining] to determine whether a project meets [this] that threshold.

13-22 (b) A building for the University and Community College System of

13-23 Nevada of which 25 percent or more of the costs of the building as a whole

13-24 are paid from money appropriated by the state or federal money.

13-25 (c) Private property that is leased to a public body whose cost as a

13-26 whole exceeds $20,000. Each separate unit that is a part of a project is

13-27 included in the cost of the project to determine whether a project meets

13-28 that threshold.

13-29 (d) Public property that is leased to a person whose cost as a whole

13-30 exceeds $20,000. Each separate unit that is part of a project is included

13-31 in the cost of the project to determine whether the project meets that

13-32 threshold.

13-33 6. "Wages" means:

13-34 (a) The basic hourly rate of pay; and

13-35 (b) The amount of pension, health and welfare, vacation and holiday

13-36 pay, the cost of apprenticeship training or other similar programs or other

13-37 bona fide fringe benefits which are a benefit to the workman.

13-38 7. "Workman" means a skilled mechanic, skilled workman, semiskilled

13-39 mechanic, semiskilled workman or unskilled workman.

13-40 Sec. 35. NRS 338.160 is hereby amended to read as follows:

13-41 338.160 1. Except as otherwise provided in [subsection 5,] sections

13-43 contract for [the construction, alteration or repair of public works shall

14-1 authorize partial payments of the amount] a public work shall pay or cause

14-2 to be paid to a contractor the progress payments due under the contract [at

14-3 the end of each calendar month, or as soon thereafter as practicable, to the

14-4 contractor if the contractor is satisfactorily performing the contract.] within

14-5 20 days after the date the public body receives a progress bill. Not more

14-6 than 90 percent of the [calculated value] amount of any [work] progress

14-7 payment may be paid until 50 percent of the work required by the contract

14-8 has been performed. Thereafter the public body may pay any of the

14-9 remaining [installments without retaining additional funds] progress

14-10 payments without withholding additional retainage if, in the opinion of

14-11 the public body, satisfactory progress is being made in the work.

14-12 2. Except as otherwise provided in [this section, the] section 15 of this

14-13 act, a public body shall [retain the amount withheld under any such

14-14 contract until the contract is satisfactorily completed and finally accepted.

14-15 When a project is sufficiently completed to be placed into service, the

14-16 public body shall reduce the retained percentage and retain only such sum

14-17 as it may determine to be sufficient to complete the contract.

14-18 3. Except as otherwise provided in this subsection, the] pay or cause to

14-19 be paid to a contractor the actual cost of the supplies, materials and

14-20 equipment that:

14-21 (a) Have been delivered and stored at the site of the public work by the

14-22 contractor or a subcontractor or supplier for use in the construction,

14-23 repair or reconstruction of the public work;

14-24 (b) Have been delivered and stored at a location specified in a

14-25 contract by the contractor or a subcontractor or supplier for use in the

14-26 construction, repair or reconstruction of the public work;

14-27 (c) Are in short supply; or

14-28 (d) Were specially made for the public work,

14-29 within 20 days after the public body receives a progress bill from the

14-30 contractor for those supplies, materials or equipment.

14-31 3. A public body shall pay or cause to be paid to the contractor at the

14-32 end of each quarter interest for the quarter on [the] any amount withheld by

14-33 the public body pursuant to NRS 338.160, 338.165 and 338.170, and

14-34 sections 2 to 33, inclusive, of this act at a rate equal to the rate quoted by

14-35 at least three financial institutions as the highest rate paid on a certificate of

14-36 deposit whose duration is approximately 90 days on the first day of the

14-37 quarter. If the amount due to a contractor pursuant to this subsection for

14-38 any quarter is less than $500, the public body may hold the interest until:

14-39 (a) The end of a subsequent quarter after which the amount of interest

14-40 due is $500 or more;

14-41 (b) The end of the fourth consecutive quarter for which no interest has

14-42 been paid to the contractor; or

15-1 (c) The amount withheld under the contract is due pursuant to

15-2 [subsection 4,] section 14 of this act,

15-3 whichever occurs first.

15-4 [4. Except as provided in subsection 5, the amount withheld under any

15-5 such contract is due within a reasonable time following the filing of a notice

15-6 of completion as provided in NRS 108.228 or upon other proper evidence

15-7 of satisfactory completion of the contract.

15-8 5. If the labor commissioner has reason to believe that an employee has

15-9 a valid and enforceable claim for wages against a contractor, he may

15-10 require the public body to withhold from any payment due the contractor

15-11 under this section and pay the labor commissioner instead, an amount equal

15-12 to the amount claimed by the employee. This amount must be paid to the

15-13 employee if the claim is resolved in his favor, otherwise it must be returned

15-14 to the public body for payment to the contractor.]

15-15 Sec. 36. NRS 338.165 is hereby amended to read as follows:

15-16 338.165 [1.] Except as otherwise provided in NRS 338.170 [, each]

15-41 the public body for those supplies, materials and equipment.

16-1 Sec. 37. NRS 338.170 is hereby amended to read as follows:

16-2 338.170 1. [When] If a public body and a contractor enter into a