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 or

1-12 performs such work that he is not required to be licensed pursuant to

1-13 chapter 624 of NRS; and

1-14 2. Contracts with a public body to provide labor, materials or services

1-15 for a public work.

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 or

2-24 performs such work that he is not required to be licensed pursuant to

2-25 chapter 624 of NRS; and

2-26 2. Contracts with a contractor, another subcontractor or a supplier to

2-27 provide labor, materials or services for a public work.

2-28 Sec. 12. "Supplier" means a person who provides materials,

2-29 equipment or supplies for a public work.

2-30 Sec. 12.3. A contractor shall submit a progress bill to the public

2-31 body monthly or more frequently if the provisions of the contract so

2-32 provide.

2-33 Sec. 12.5. The provisions of NRS 338.160, 338.165 and 338.170 and

2-34 sections 2 to 33, inclusive, of this act do not apply to a contract entered

2-35 into by the department of transportation pursuant to chapter 408 of NRS.

2-36 Sec. 13. Interest that is required to be paid on the retainage accrues

2-37 from the date the retainage is withheld until the date the retainage is paid

2-38 to the person from whom the retainage was withheld.

2-39 Sec. 14. If:

2-40 1. A public body or a person acting with the authority of the public

2-41 body occupies or begins use of a public work or a portion of a public

2-42 work;

3-1 2. A notice of completion for a public work or a portion of a public

3-2 work is recorded as provided in NRS 108.228; or

3-3 3. A public body partially occupies one or more buildings of a public

3-4 work,

3-5 the public body shall pay or cause to be paid to the contractor the

3-6 retainage, the amount withheld from a progress payment or retainage

3-7 payment pursuant to section 15 of this act, and any interest accrued

3-8 thereon within 30 days after whichever event described in subsection 1, 2

3-9 or 3 occurs first. The amount paid must be in the proportion that the

3-10 value of the portion of the public work which is used or occupied bears to

3-11 the total value of the public work.

3-12 Sec. 15. 1. Except as otherwise provided in section 14 of this act, a

3-13 public body may, but is not required to, withhold from a progress

3-14 payment or retainage payment an amount sufficient to pay the expenses

3-15 the public body reasonably expects to incur as a result of the failure of

3-16 the contractor to comply with the contract or applicable building code,

3-17 law or regulation.

3-18 2. A public body shall, within 20 days after it receives a progress bill

3-19 or retainage bill from a contractor, give a written notice to the contractor

3-20 of any amount that will be withheld pursuant to this section. The written

3-21 notice must set forth:

3-22 (a) The amount of the progress payment or retainage payment that

3-23 will be withheld from the contractor; and

3-24 (b) A detailed explanation of the reason the public body will withhold

3-25 that amount, including, without limitation, a specific reference to the

3-26 provision or section of the contract, or any documents related thereto, or

3-27 the applicable building code, law or regulation with which the contractor

3-28 has failed to comply.

3-29 The written notice must be signed by an authorized agent of the public

3-30 body.

3-31 3. If the public body receives a written notice of the correction of the

3-32 condition that is the reason for the withholding, signed by an authorized

3-33 agent of the contractor, the public body shall pay the amount withheld by

3-34 the public body within 30 days after the public body receives the next

3-35 progress bill or retainage bill.

3-36 Secs. 16 and 17. (Deleted by amendment.)

3-37 Sec. 18. 1. If a public body receives:

3-38 (a) A progress bill or retainage bill, fails to give a contractor a written

3-39 notice of any withholding in the manner set forth in subsection 2 of

3-40 section 15 of this act and does not pay the contractor within 30 days after

3-41 receiving the progress bill or retainage bill; or

3-42 (b) A contractor’s written notice of the correction of a condition set

3-43 forth pursuant to subsection 2 of section 15 of this act as the reason for

4-1 the withholding, signed by an authorized agent of the contractor, and

4-2 fails to:

4-3 (1) Pay the amount of the progress payment or retainage payment

4-4 that was withheld from the contractor within 30 days after the public

4-5 body receives the next progress bill or retainage bill; or

4-6 (2) Object to the scope and manner of the correction, within 30 days

4-7 after the public body receives the notice of correction, in a written

4-8 statement that sets forth the reason for the objection and is signed by an

4-9 authorized agent of the public body,

4-10 the public body shall pay to the contractor, in addition to the entire

4-11 amount of the progress bill or retainage bill or any unpaid portion

4-12 thereof, interest from the 30th day on the amount delayed, at a rate equal

4-13 to the amount provided for in subsection 3 of NRS 338.160, until

4-14 payment is made to the contractor.

4-15 2. If the public body objects pursuant to subparagraph (2) of

4-16 paragraph (b) of subsection 1, it shall pay to the contractor an amount

4-17 equal to the value of the corrections to which the public body does not

4-18 object.

4-19 Sec. 19. Within 5 working days after a public body receives a written

4-20 request from a subcontractor or supplier of the contractor with respect to

4-21 a contract which has not been fully performed, the public body shall

4-22 notify the subcontractor or supplier in writing of the following:

4-23 1. The date the public body made a specified progress payment or

4-24 retainage payment to a contractor;

4-25 2. Whether the public body has paid the entire amount of a specified

4-26 progress payment or retainage payment to the contractor; and

4-27 3. The amount withheld by the public body from a specified progress

4-28 payment or retainage payment to the contractor, if any.

4-29 Sec. 20. 1. A contractor may withhold from a progress payment or

4-30 retainage payment an amount sufficient to pay the expenses the

4-31 contractor reasonably expects to incur as a result of the failure of his

4-32 subcontractor or supplier to comply with the subcontract or applicable

4-33 building code, law or regulation.

4-34 2. A contractor shall, within 10 days after he receives:

4-35 (a) A progress payment or retainage payment from the public body for

4-36 an amount that is less than the amount set forth in the applicable

4-37 progress bill or retainage bill; or

4-38 (b) A progress bill or retainage bill from his subcontractor or
4-39 supplier,

4-40 give a written notice to his subcontractor or supplier of any amount that

4-41 will be withheld pursuant to this section.

4-42 3. The written notice must:

4-43 (a) Set forth:

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

5-2 will be withheld from his subcontractor or supplier; and

5-3 (2) A detailed explanation of the reason the contractor will withhold

5-4 that amount, including, without limitation, a specific reference to the

5-5 provision or section of the subcontract, or documents related thereto, or

5-6 applicable building code, law or regulation with which his subcontractor

5-7 or supplier has failed to comply; and

5-8 (b) Be signed by an authorized agent of the contractor.

5-9 4. The contractor shall pay to his subcontractor or supplier the

5-10 amount withheld by the public body or the contractor within 10 days

5-11 after:

5-12 (a) The contractor receives a written notice of the correction of the

5-13 condition that is the reason for the withholding, signed by an authorized

5-14 agent of the subcontractor or supplier; or

5-15 (b) The public body pays to the contractor the amount withheld,

5-16 whichever occurs later.

5-17 Sec. 21. 1. If a contractor makes payment to a subcontractor or

5-18 supplier more than 10 days after the occurrence of any of the following

5-19 acts or omissions:

5-20 (a) The contractor fails to pay his subcontractor or supplier in

5-21 accordance with the provisions of subsection 1 of NRS 338.165;

5-22 (b) The contractor fails to give his subcontractor or supplier the

5-23 written notice of any withholding as required by subsections 2 and 3 of

5-24 section 20 of this act; or

5-25 (c) The contractor receives a subcontractor’s or supplier’s written

5-26 notice of correction of the condition set forth pursuant to subsection 4 of

5-27 section 20 of this act as the reason for the withholding, signed by an

5-28 authorized agent of the subcontractor or supplier, and fails to:

5-29 (1) Pay the amount of the progress payment or retainage payment

5-30 that was withheld from his subcontractor or supplier within 10 days after

5-31 the contractor receives the next progress bill or retainage bill; or

5-32 (2) Object to the scope and manner of the correction, within 10 days

5-33 after receiving the written notice of correction, in a written statement that

5-34 sets forth the reason for the objection and is signed by an authorized

5-35 agent of the subcontractor, statement that sets forth the reason for the

5-36 objection and is accompanied by a notarized affidavit signed by the

5-37 contractor,

5-38 the contractor shall pay to the subcontractor or supplier, in addition to

5-39 the entire amount of the progress bill or the retainage bill or any unpaid

5-40 portion thereof, interest from the 10th day on the amount delayed, at a

5-41 rate equal to the lowest daily prime rate at the three largest banks or

5-42 other financial institutions of the United States on the date the contract

6-1 was executed plus 2 percent, until payment is made to the subcontractor

6-2 or supplier.

6-3 2. If the contractor objects pursuant to subparagraph (2) of

6-4 paragraph (c) of subsection 1, the contractor shall pay to the

6-5 subcontractor or supplier an amount that is equal to the value of the

6-6 corrections to which the contractor does not object.

6-7 Sec. 22. Within 5 working days after a contractor receives a written

6-8 request from a subcontractor or supplier of his subcontractor or supplier

6-9 with respect to a subcontract which has not been fully performed, he

6-10 shall notify the subcontractor or supplier of his subcontractor or supplier

6-11 in writing of the following:

6-12 1. The date the contractor made a specified progress payment or

6-13 retainage payment to his subcontractor or supplier;

6-14 2. Whether the contractor has paid the entire amount of a specified

6-15 progress payment or retainage payment to his subcontractor or supplier;

6-16 and

6-17 3. The amount withheld by the contractor from a specified progress

6-18 payment or retainage payment to his subcontractor or supplier, if any.

6-19 Sec. 23. Except as otherwise provided in sections 24, 25 and 26 of

6-20 this act:

6-21 1. Each subcontractor shall disburse money paid to him pursuant to

6-22 this chapter, including any interest which he receives, to his

6-23 subcontractors and suppliers within 10 days after he receives the money,

6-24 in direct proportion to the subcontractors’ and suppliers’ basis in the

6-25 progress bill or retainage bill and any accrued interest thereon.

6-26 2. A subcontractor shall make payments to his subcontractor or

6-27 supplier in an amount equal to that subcontractor’s or supplier’s basis in

6-28 the payments paid by the contractor to him for the supplies, materials

6-29 and equipment identified in the contract between the contractor and the

6-30 public body, or in the subcontract between the subcontractor or supplier

6-31 and the contractor, within 10 days after the subcontractor has received a

6-32 progress payment or retainage payment from the contractor for those

6-33 supplies, materials and equipment.

6-34 Sec. 24. 1. If a subcontractor and another subcontractor or

6-35 supplier enter into a subcontract for a public work, the subcontractor

6-36 may withhold as retainage not more than 10 percent from the amount of

6-37 any progress payment due under a subcontract which is made before 50

6-38 percent of the work has been completed under the subcontract. The

6-39 subcontractor shall pay any additional progress payments due under the

6-40 subcontract without withholding any additional retainage if, in the

6-41 opinion of the subcontractor, satisfactory progress is being made in the

6-42 work under the subcontract. The payment must be equal to that paid by

7-1 the contractor to him for the work performed or supplies provided by his

7-2 subcontractor or supplier.

7-3 2. If the subcontractor receives a payment of interest earned on the

7-4 retainage or an amount withheld from a progress payment, he shall,

7-5 within 10 days after receiving the money, pay to each of his

7-6 subcontractors or suppliers that portion of the interest received from the

7-7 contractor which is attributable to the retainage or amount withheld from

7-8 a progress payment by him to his subcontractor or supplier.

7-9 Sec. 25. 1. A subcontractor may withhold from a progress payment

7-10 or retainage payment an amount sufficient to pay the expenses the

7-11 subcontractor reasonably expects to incur as a result of the failure of his

7-12 subcontractor or supplier to comply with the subcontract or applicable

7-13 building code, law or regulation.

7-14 2. A subcontractor shall, within 10 days after he receives:

7-15 (a) A progress payment or retainage payment from a contractor for an

7-16 amount that is less than the amount set forth in the applicable progress

7-17 bill or retainage bill; or

7-18 (b) A progress bill or retainage bill from his subcontractor
7-19 or supplier,

7-20 give a written notice to his subcontractor or supplier of any amount that

7-21 will be withheld pursuant to this section.

7-22 3. The written notice must:

7-23 (a) Set forth:

7-24 (1) The amount of the progress payment or retainage payment that

7-25 will be withheld from his subcontractor or supplier; and

7-26 (2) A detailed explanation of the reason the subcontractor will

7-27 withhold that amount, including, without limitation, a specific reference

7-28 to the provision or section of the subcontract, or documents related

7-29 thereto, or applicable building code, law or regulation with which the

7-30 subcontractor or supplier has failed to comply; and

7-31 (b) Be signed by an authorized agent of the subcontractor.

7-32 4. The subcontractor shall pay to his subcontractor or supplier the

7-33 amount withheld by the public body, contractor or subcontractor within

7-34 10 days after:

7-35 (a) The subcontractor receives a written notice of the correction of the

7-36 condition that is the reason for the withholding, signed by an authorized

7-37 agent of his subcontractor or supplier; or

7-38 (b) The contractor pays to him the amount withheld,

7-39 whichever occurs later.

8-1 Sec. 26. 1. If a subcontractor makes payment to his subcontractor

8-2 or supplier more than 10 days after the occurrence of any of the

8-3 following acts or omissions:

8-4 (a) The subcontractor fails to pay his subcontractor or supplier in

8-5 accordance with the provisions of subsection 1 of section 23 of this act;

8-6 (b) The subcontractor fails to give his subcontractor or supplier the

8-7 written notice of any withholding as required by subsections 2 and 3 of

8-8 section 25 of this act; or

8-9 (c) The subcontractor receives a written notice of the correction of a

8-10 condition set forth pursuant to subsection 4 of section 25 of this act as

8-11 the reason for the withholding from his subcontractor or supplier, signed

8-12 by an authorized agent of his subcontractor or supplier, and fails to:

8-13 (1) Pay the amount of the progress payment or retainage payment

8-14 that was withheld from his subcontractor or supplier within 10 days after

8-15 the subcontractor receives the subcontractor’s or supplier’s next progress

8-16 bill or retainage bill; or

8-17 (2) Object to the scope and manner of the correction, within 10 days

8-18 after receiving the written notice of correction, in a written statement that

8-19 sets forth the reason for the objection, signed by an authorized agent of

8-20 the subcontractor,

8-21 the subcontractor shall pay to his subcontractor or supplier, in addition

8-22 to the entire amount of the progress bill or the retainage bill or any

8-23 unpaid portion thereof, interest from the 10th day on the amount

8-24 delayed, at a rate equal to the lowest daily prime rate at the three largest

8-25 banks or other financial institutions of the United States on the date the

8-26 contract was executed plus 2 percent, until payment is made to his

8-27 subcontractor or supplier.

8-28 2. If the subcontractor objects pursuant to subparagraph (2) of

8-29 paragraph (c) of subsection 1, the subcontractor shall pay to his

8-30 subcontractor or supplier an amount that is equal to the value of the

8-31 corrections to which he does not object.

8-32 Sec. 27. Within 5 working days after a subcontractor receives a

8-33 written request from a subcontractor or supplier of his subcontractor or

8-34 supplier with respect to a subcontract which has not been fully

8-35 performed, he shall notify the subcontractor or supplier of his

8-36 subcontractor or supplier in writing of the following:

8-37 1. The date the subcontractor made a specified progress payment or

8-38 retainage payment to his subcontractor or supplier;

8-39 2. Whether the subcontractor has paid the entire amount of a

8-40 specified progress payment or retainage payment to his subcontractor or

8-41 supplier; and

9-1 3. The amount withheld by the subcontractor from a specified

9-2 progress payment or retainage payment to his subcontractor or supplier,

9-3 if any.

9-4 Sec. 27.3. Any release or waiver required to be provided by a

9-5 contractor, subcontractor or supplier to receive a progress payment or

9-6 retainage payment must be:

9-7 1. Conditional for the purpose of receiving payment and shall be

9-8 deemed to become unconditional upon the receipt of the money due to

9-9 the contractor, subcontractor or supplier; and

9-10 2. Limited to claims related to the invoiced amount of the labor,

9-11 materials, equipment or supplies that are the subject of the progress bill

9-12 or retainage bill.

9-13 Sec. 27.5. 1. A contractor who believes that the public body has

9-14 violated the provisions of NRS 338.160 or sections 14 to 19, inclusive, of

9-15 this act may apply to the district court of the county in which the public

9-16 work or a part thereof is located for an alternate writ of mandamus

9-17 pursuant to NRS 34.150 to 34.310, inclusive, to require the public body to

9-18 comply with the provisions of NRS 338.160 or sections 14 to 19,

9-19 inclusive, of this act.

9-20 2. If the court determines that the public body has violated the

9-21 provisions of NRS 338.160 or sections 14 to 19, inclusive, of this act, the

9-22 court may order the public body to pay to the contractor:

9-23 (a) The entire amount that was withheld by the public body, or a

9-24 portion thereof;

9-25 (b) Interest on the amount that was withheld by the public body, or a

9-26 portion thereof;

9-27 (c) The reasonable costs incurred by the contractor, including,

9-28 without limitation, his attorney’s fees; or

9-29 (d) Any combination of paragraphs (a), (b) and (c).

9-30 3. The provisions of this section do not prevent a public body from

9-31 including a provision governing the payment of attorney’s fees in a

9-32 contract into which it enters with a contractor for a public work.

9-33 Sec. 28. 1. A subcontractor or supplier who believes that the

9-34 amount withheld by the contractor or subcontractor is not justified or is

9-35 excessive may apply to the district court of the county where the public

9-36 work or a part thereof is located for an order directing the contractor or

9-37 subcontractor to appear before the court to show cause why the relief

9-38 requested should not be granted.

9-39 2. The motion must:

9-40 (a) Set forth the grounds upon which relief is requested; and

9-41 (b) Be accompanied by a notarized affidavit signed by the petitioner or

9-42 his attorney that sets forth the facts upon which the motion is based.

10-1 3. If the court orders a hearing based upon the motion, the petitioner

10-2 shall serve the notice of the motion and the order of the court on the

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

10-4 conduct the hearing not less than 10 days and not more than 20 days

10-5 after the court issues the order for a hearing.

10-6 4. The order for a hearing must include a statement that, if the

10-7 respondent fails to appear at the time and place of the hearing, the court

10-8 will order the respondent to pay to the petitioner:

10-9 (a) The entire amount that was withheld by the respondent, or a

10-10 portion thereof;

10-11 (b) Interest on the amount that was withheld by the respondent, or a

10-12 portion thereof;

10-13 (c) The costs incurred by the petitioner, including, without limitation,

10-14 his attorney’s fees; or

10-15 (d) Any combination of paragraphs (a), (b) and (c).

10-16 5. If, when the motion is filed, there is a civil action pending between

10-17 the petitioner and the respondent, the motion must be consolidated into

10-18 the civil action.

10-19 6. If the court determines that:

10-20 (a) The amount withheld is not justified, the court shall order the

10-21 respondent to pay to the petitioner the amount that was withheld.

10-22 (b) The amount withheld is excessive, the court shall order the

10-23 respondent to pay to the petitioner an amount determined by the court.

10-24 (c) The amount withheld is justified, the court shall issue an order

10-25 approving the amount that was withheld by the respondent.

10-26 7. The proceedings conducted pursuant to the provisions of this

10-27 section do not affect any other rights or remedies provided by law or

10-28 contract.

10-29 Sec. 29. Each notice required pursuant to NRS 338.160, 338.165

10-30 and 338.170 and sections 2 to 33, inclusive, of this act must be:

10-31 1. Delivered personally; or

10-32 2. Sent by facsimile machine and delivered by regular or certified

10-33 mail.

10-34 Sec. 30. 1. A person may not waive or modify a right, obligation or

10-35 liability set forth in the provisions of NRS 338.160, 338.165 and 338.170

10-36 and sections 2 to 33, inclusive, of this act.

10-37 2. A condition, stipulation or provision in a contract or other

10-38 agreement that:

10-39 (a) Requires a person to waive a right set forth in the provisions of

10-40 NRS 338.160, 338.165 and 338.170 and sections 2 to 33, inclusive, of this

10-41 act; or

11-1 (b) Relieves a person of an obligation or liability imposed by the

11-2 provisions of NRS 338.160, 338.165 and 338.170 and sections 2 to 33,

11-3 inclusive, of this act,

11-4 is void.

11-5 Sec. 31. (Deleted by amendment.)

11-6 Sec. 32. 1. The court or arbitrator shall award to a contractor,

11-7 subcontractor or supplier who is the prevailing party in a civil action or

11-8 an arbitration proceeding to recover an amount that was required to be

11-9 paid to him pursuant to the provisions of NRS 338.160, 338.165 and

11-10 338.170 and sections 2 to 33, inclusive, of this act his reasonable costs

11-11 and attorney’s fees.

11-12 2. The provisions of NRS 338.160, 338.165 and 338.170 and sections

11-13 2 to 33, inclusive, of this act do not prevent a public body from including

11-14 a provision governing attorney’s fees in a contract for a public work.

11-15 Sec. 33. The provisions of NRS 338.160, 338.165 and 338.170 and

11-16 sections 2 to 33, inclusive, of this act do not impair or affect the rights of

11-17 a contractor, subcontractor or supplier to whom any amount may be

11-18 owed for work performed or materials, equipment or supplies furnished

11-19 to maintain a civil action or to submit any controversy arising under the

11-20 contract to arbitration to recover that amount.

11-21 Sec. 34. NRS 338.010 is hereby amended to read as follows:

11-22 338.010 As used in this chapter:

11-43 (3) Public roads;

12-1 (4) Public highways;

12-2 (5) Public streets and alleys;

12-3 (6) Public utilities which are financed in whole or in part by public

12-4 money;

12-5 (7) Publicly owned water mains and sewers;

12-6 (8) Public parks and playgrounds;

12-7 (9) Public convention facilities which are financed at least in part with

12-8 public funds; and

12-9 (10) All other publicly owned works and property whose cost as a

12-10 whole exceeds $20,000. Each separate unit [which] that is a part of a

12-11 project is included in the cost of the project [for the purpose of

12-12 determining] to determine whether a project meets [this] that threshold.

12-13 (b) A building for the University and Community College System of

12-14 Nevada of which 25 percent or more of the costs of the building as a whole

12-15 are paid from money appropriated by the state or federal money.

12-16 6. "Wages" means:

12-17 (a) The basic hourly rate of pay; and

12-18 (b) The amount of pension, health and welfare, vacation and holiday

12-19 pay, the cost of apprenticeship training or other similar programs or other

12-20 bona fide fringe benefits which are a benefit to the workman.

12-21 7. "Workman" means a skilled mechanic, skilled workman, semiskilled

12-22 mechanic, semiskilled workman or unskilled workman.

12-23 Sec. 35. NRS 338.160 is hereby amended to read as follows:

12-24 338.160 1. Except as otherwise provided in [subsection 5,] section

12-42 When a project is sufficiently completed to be placed into service, the

13-1 public body shall reduce the retained percentage and retain only such sum

13-2 as it may determine to be sufficient to complete the contract.

13-3 3. Except as otherwise provided in this subsection, the] identify in the

13-4 contract and pay or cause to be paid to a contractor the actual cost of the

13-5 supplies, materials and equipment that:

13-6 (a) Are identified in the contract;

13-7 (b) Have been delivered and stored at a location, and in the time and

13-8 manner, specified in a contract by the contractor or a subcontractor or

13-9 supplier for use in the construction, repair or reconstruction of the public

13-10 work; and

13-11 (c) Are in short supply or were specially made for the public work,

13-12 within 30 days after the public body receives a progress bill from the

13-13 contractor for those supplies, materials or equipment.

13-14 3. A public body shall pay or cause to be paid to the contractor at the

13-15 end of each quarter interest for the quarter on [the] any amount withheld by

13-16 the public body pursuant to NRS 338.160, 338.165 and 338.170, and

13-17 sections 2 to 33, inclusive, of this act at a rate equal to the rate quoted by

13-18 at least three financial institutions as the highest rate paid on a certificate of

13-19 deposit whose duration is approximately 90 days on the first day of the

13-20 quarter. If the amount due to a contractor pursuant to this subsection for

13-21 any quarter is less than $500, the public body may hold the interest until:

13-22 (a) The end of a subsequent quarter after which the amount of interest

13-23 due is $500 or more;

13-24 (b) The end of the fourth consecutive quarter for which no interest has

13-25 been paid to the contractor; or

13-26 (c) The amount withheld under the contract is due pursuant to

13-27 [subsection 4,] section 14 of this act,

13-28 whichever occurs first.

13-29 4. [Except as provided in subsection 5, the amount withheld under any

13-30 such contract is due within a reasonable time following the filing of a notice

13-31 of completion as provided in NRS 108.228 or upon other proper evidence

13-32 of satisfactory completion of the contract.

13-33 5.] If the labor commissioner has reason to believe that an employee

13-34 has a valid and enforceable claim for wages against a contractor, he may

13-35 require the public body to withhold from any payment due the contractor

13-36 under this section and pay the labor commissioner instead, an amount equal

13-37 to the amount claimed by the employee. This amount must be paid to the

13-38 employee if the claim is resolved in his favor, otherwise it must be returned

13-39 to the public body for payment to the contractor.

13-40 Sec. 36. NRS 338.165 is hereby amended to read as follows:

13-41 338.165 [1.] Except as otherwise provided in NRS 338.170 [, each]

13-42 and sections 20 and 21 of this act:

14-1 1. Each contractor shall disburse money paid to him pursuant to this

14-2 chapter, including any interest which he receives, to his subcontractors and

14-3 suppliers within [15] 10 days after he receives the money, in direct

14-4 proportion to the subcontractors’ and suppliers’ basis in the [total contract

14-5 between the contractor and the owner.

14-6 2. Any money which is payable to a subcontractor pursuant to this

14-7 section accrues interest at a rate equal to the lowest daily prime rate at the

14-8 three largest United States banking institutions on the date the contract is

14-9 executed plus 2 percent, from 15 days after the date on which the money

14-10 was received by the contractor until the date of payment.] progress bill or

14-11 retainage bill and any accrued interest thereon.

14-12 2. A contractor shall make payments to his subcontractor or supplier

14-13 in an amount equal to that subcontractor’s or supplier’s basis in the

14-14 payments paid by the public body to the contractor for the supplies,

14-15 material and equipment identified in the contract between the contractor

14-16 and the public body, or between the subcontractor or supplier and the

14-17 contractor, within 10 days after the contractor has received a progress

14-18 payment or retainage payment from the public body for those supplies,

14-19 materials and equipment.

14-20 Sec. 37. NRS 338.170 is hereby amended to read as follows:

14-21 338.170 1. [When] If a public body and a contractor enter into a

14-43 subcontractor [.] or supplier.

15-1 Sec. 38. The provisions of NRS 338.160, 338.165 and 338.170 and

15-2 sections 2 to 33, inclusive, of this act do not:

15-3 1. Create any right of action in a dispute between the public body and a

15-4 subcontractor or supplier; and

15-5 2. Effect the right of the parties to agree to submit any controversy

15-6 arising under the contract to arbitration.