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. Except with respect to any payment withheld pursuant to

2-40 section 15 of this act, if:

2-41 1. A public body or a person acting with the authority of the public

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

2-43 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 any

3-6 outstanding payment due, including, without limitation, retainage, and

3-7 any interest accrued thereon within 30 days after whichever event

3-8 described in subsection 1, 2 or 3 occurs first. The amount paid must be in

3-9 the proportion that the value of the portion of the public work which is

3-10 used or occupied bears to the total value of the public work.

3-11 Sec. 15. 1. A public body may, but is not required to, withhold

3-12 from a progress payment or retainage payment an amount sufficient to

3-13 pay the expenses the public body reasonably expects to incur as a result

3-14 of the failure of the contractor to comply with the contract or applicable

3-15 building code, law or regulation.

3-16 2. A public body shall, within 20 days after it receives a progress bill

3-17 or retainage bill from a contractor, give a written notice to the contractor

3-18 of any amount that will be withheld pursuant to this section. The written

3-19 notice must set forth:

3-20 (a) The amount of the progress payment or retainage payment that

3-21 will be withheld from the contractor; and

3-22 (b) A detailed explanation of the reason the public body will withhold

3-23 that amount, including, without limitation, a specific reference to the

3-24 provision or section of the contract, or any documents related thereto, or

3-25 the applicable building code, law or regulation with which the contractor

3-26 has failed to comply.

3-27 The written notice must be signed by an authorized agent of the public

3-28 body.

3-29 3. If the public body receives a written notice of the correction of the

3-30 condition that is the reason for the withholding, signed by an authorized

3-31 agent of the contractor, the public body shall pay the amount withheld by

3-32 the public body within 30 days after the public body receives the next

3-33 progress bill or retainage bill.

3-34 Secs. 16 and 17. (Deleted by amendment.)

3-35 Sec. 18. 1. If a public body receives:

3-36 (a) A progress bill or retainage bill, fails to give a contractor a written

3-37 notice of any withholding in the manner set forth in subsection 2 of

3-38 section 15 of this act and does not pay the contractor within 30 days after

3-39 receiving the progress bill or retainage bill; or

3-40 (b) A contractor’s written notice of the correction of a condition set

3-41 forth pursuant to subsection 2 of section 15 of this act as the reason for

3-42 the withholding, signed by an authorized agent of the contractor, and

3-43 fails to:

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

4-2 that was withheld from the contractor within 30 days after the public

4-3 body receives the next progress bill or retainage bill; or

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

4-5 after the public body receives the notice of correction, in a written

4-6 statement that sets forth the reason for the objection and is signed by an

4-7 authorized agent of the public body,

4-8 the public body shall pay to the contractor, in addition to the entire

4-9 amount of the progress bill or retainage bill or any unpaid portion

4-10 thereof, interest from the 30th day on the amount delayed, at a rate equal

4-11 to the amount provided for in subsection 3 of NRS 338.160, until

4-12 payment is made to the contractor.

4-13 2. If the public body objects pursuant to subparagraph (2) of

4-14 paragraph (b) of subsection 1, it shall pay to the contractor an amount

4-15 equal to the value of the corrections to which the public body does not

4-16 object.

4-17 Sec. 19. Within 5 working days after a public body receives a written

4-18 request from a subcontractor or supplier of the contractor with respect to

4-19 a contract which has not been fully performed, the public body shall

4-20 notify the subcontractor or supplier in writing of the following:

4-21 1. The date the public body made a specified progress payment or

4-22 retainage payment to a contractor;

4-23 2. Whether the public body has paid the entire amount of a specified

4-24 progress payment or retainage payment to the contractor; and

4-25 3. The amount withheld by the public body from a specified progress

4-26 payment or retainage payment to the contractor, if any.

4-27 Sec. 20. 1. A contractor may withhold from a progress payment or

4-28 retainage payment an amount sufficient to pay the expenses the

4-29 contractor reasonably expects to incur as a result of the failure of his

4-30 subcontractor or supplier to comply with the subcontract or applicable

4-31 building code, law or regulation.

4-32 2. A contractor shall, within 10 days after he receives:

4-33 (a) A progress payment or retainage payment from the public body for

4-34 an amount that is less than the amount set forth in the applicable

4-35 progress bill or retainage bill; or

4-36 (b) A progress bill or retainage bill from his subcontractor or
4-37 supplier,

4-38 give a written notice to his subcontractor or supplier of any amount that

4-39 will be withheld pursuant to this section.

4-40 3. The written notice must:

4-41 (a) Set forth:

4-42 (1) The amount of the progress payment or retainage payment that

4-43 will be withheld from his subcontractor or supplier; and

5-1 (2) A detailed explanation of the reason the contractor will withhold

5-2 that amount, including, without limitation, a specific reference to the

5-3 provision or section of the subcontract, or documents related thereto, or

5-4 applicable building code, law or regulation with which his subcontractor

5-5 or supplier has failed to comply; and

5-6 (b) Be signed by an authorized agent of the contractor.

5-7 4. The contractor shall pay to his subcontractor or supplier the

5-8 amount withheld by the public body or the contractor within 10 days

5-9 after:

5-10 (a) The contractor receives a written notice of the correction of the

5-11 condition that is the reason for the withholding, signed by an authorized

5-12 agent of the subcontractor or supplier; or

5-13 (b) The public body pays to the contractor the amount withheld,

5-14 whichever occurs later.

5-15 Sec. 21. 1. If a contractor makes payment to a subcontractor or

5-16 supplier more than 10 days after the occurrence of any of the following

5-17 acts or omissions:

5-18 (a) The contractor fails to pay his subcontractor or supplier in

5-19 accordance with the provisions of subsection 1 of NRS 338.165;

5-20 (b) The contractor fails to give his subcontractor or supplier the

5-21 written notice of any withholding as required by subsections 2 and 3 of

5-22 section 20 of this act; or

5-23 (c) The contractor receives a subcontractor’s or supplier’s written

5-24 notice of correction of the condition set forth pursuant to subsection 4 of

5-25 section 20 of this act as the reason for the withholding, signed by an

5-26 authorized agent of the subcontractor or supplier, and fails to:

5-27 (1) Pay the amount of the progress payment or retainage payment

5-28 that was withheld from his subcontractor or supplier within 10 days after

5-29 the contractor receives the next progress bill or retainage bill; or

5-30 (2) Object to the scope and manner of the correction, within 10 days

5-31 after receiving the written notice of correction, in a written statement that

5-32 sets forth the reason for the objection and is signed by an authorized

5-33 agent of the subcontractor, statement that sets forth the reason for the

5-34 objection and is accompanied by a notarized affidavit signed by the

5-35 contractor,

5-36 the contractor shall pay to the subcontractor or supplier, in addition to

5-37 the entire amount of the progress bill or the retainage bill or any unpaid

5-38 portion thereof, interest from the 10th day on the amount delayed, at a

5-39 rate equal to the lowest daily prime rate at the three largest banks or

5-40 other financial institutions of the United States on the date the contract

5-41 was executed plus 2 percent, until payment is made to the subcontractor

5-42 or supplier.

6-1 2. If the contractor objects pursuant to subparagraph (2) of

6-2 paragraph (c) of subsection 1, the contractor shall pay to the

6-3 subcontractor or supplier an amount that is equal to the value of the

6-4 corrections to which the contractor does not object.

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

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

6-7 with respect to a subcontract which has not been fully performed, he

6-8 shall notify the subcontractor or supplier of his subcontractor or supplier

6-9 in writing of the following:

6-10 1. The date the contractor made a specified progress payment or

6-11 retainage payment to his subcontractor or supplier;

6-12 2. Whether the contractor has paid the entire amount of a specified

6-13 progress payment or retainage payment to his subcontractor or supplier;

6-14 and

6-15 3. The amount withheld by the contractor from a specified progress

6-16 payment or retainage payment to his subcontractor or supplier, if any.

6-17 Sec. 23. Except as otherwise provided in sections 24, 25 and 26 of

6-18 this act:

6-19 1. Each subcontractor shall disburse money paid to him pursuant to

6-20 this chapter, including any interest which he receives, to his

6-21 subcontractors and suppliers within 10 days after he receives the money,

6-22 in direct proportion to the subcontractors’ and suppliers’ basis in the

6-23 progress bill or retainage bill and any accrued interest thereon.

6-24 2. A subcontractor shall make payments to his subcontractor or

6-25 supplier in an amount equal to that subcontractor’s or supplier’s basis in

6-26 the payments paid by the contractor to him for the supplies, materials

6-27 and equipment identified in the contract between the contractor and the

6-28 public body, or in the subcontract between the subcontractor or supplier

6-29 and the contractor, within 10 days after the subcontractor has received a

6-30 progress payment or retainage payment from the contractor for those

6-31 supplies, materials and equipment.

6-32 Sec. 24. 1. If a subcontractor and another subcontractor or

6-33 supplier enter into a subcontract for a public work, the subcontractor

6-34 may withhold as retainage not more than 10 percent from the amount of

6-35 any progress payment due under a subcontract which is made before 50

6-36 percent of the work has been completed under the subcontract. The

6-37 subcontractor shall pay any additional progress payments due under the

6-38 subcontract without withholding any additional retainage if, in the

6-39 opinion of the subcontractor, satisfactory progress is being made in the

6-40 work under the subcontract. The payment must be equal to that paid by

6-41 the contractor to him for the work performed or supplies provided by his

6-42 subcontractor or supplier.

7-1 2. If the subcontractor receives a payment of interest earned on the

7-2 retainage or an amount withheld from a progress payment, he shall,

7-3 within 10 days after receiving the money, pay to each of his

7-4 subcontractors or suppliers that portion of the interest received from the

7-5 contractor which is attributable to the retainage or amount withheld from

7-6 a progress payment by him to his subcontractor or supplier.

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

7-8 or retainage payment an amount sufficient to pay the expenses the

7-9 subcontractor reasonably expects to incur as a result of the failure of his

7-10 subcontractor or supplier to comply with the subcontract or applicable

7-11 building code, law or regulation.

7-12 2. A subcontractor shall, within 10 days after he receives:

7-13 (a) A progress payment or retainage payment from a contractor for an

7-14 amount that is less than the amount set forth in the applicable progress

7-15 bill or retainage bill; or

7-16 (b) A progress bill or retainage bill from his subcontractor
7-17 or supplier,

7-18 give a written notice to his subcontractor or supplier of any amount that

7-19 will be withheld pursuant to this section.

7-20 3. The written notice must:

7-21 (a) Set forth:

7-22 (1) The amount of the progress payment or retainage payment that

7-23 will be withheld from his subcontractor or supplier; and

7-24 (2) A detailed explanation of the reason the subcontractor will

7-25 withhold that amount, including, without limitation, a specific reference

7-26 to the provision or section of the subcontract, or documents related

7-27 thereto, or applicable building code, law or regulation with which the

7-28 subcontractor or supplier has failed to comply; and

7-29 (b) Be signed by an authorized agent of the subcontractor.

7-30 4. The subcontractor shall pay to his subcontractor or supplier the

7-31 amount withheld by the public body, contractor or subcontractor within

7-32 10 days after:

7-33 (a) The subcontractor receives a written notice of the correction of the

7-34 condition that is the reason for the withholding, signed by an authorized

7-35 agent of his subcontractor or supplier; or

7-36 (b) The contractor pays to him the amount withheld,

7-37 whichever occurs later.

7-38 Sec. 26. 1. If a subcontractor makes payment to his subcontractor

7-39 or supplier more than 10 days after the occurrence of any of the

7-40 following acts or omissions:

8-1 (a) The subcontractor fails to pay his subcontractor or supplier in

8-2 accordance with the provisions of subsection 1 of section 23 of this act;

8-3 (b) The subcontractor fails to give his subcontractor or supplier the

8-4 written notice of any withholding as required by subsections 2 and 3 of

8-5 section 25 of this act; or

8-6 (c) The subcontractor receives a written notice of the correction of a

8-7 condition set forth pursuant to subsection 4 of section 25 of this act as

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

8-9 by an authorized agent of his subcontractor or supplier, and fails to:

8-10 (1) Pay the amount of the progress payment or retainage payment

8-11 that was withheld from his subcontractor or supplier within 10 days after

8-12 the subcontractor receives the subcontractor’s or supplier’s next progress

8-13 bill or retainage bill; or

8-14 (2) Object to the scope and manner of the correction, within 10 days

8-15 after receiving the written notice of correction, in a written statement that

8-16 sets forth the reason for the objection, signed by an authorized agent of

8-17 the subcontractor,

8-18 the subcontractor shall pay to his subcontractor or supplier, in addition

8-19 to the entire amount of the progress bill or the retainage bill or any

8-20 unpaid portion thereof, interest from the 10th day on the amount

8-21 delayed, at a rate equal to the lowest daily prime rate at the three largest

8-22 banks or other financial institutions of the United States on the date the

8-23 contract was executed plus 2 percent, until payment is made to his

8-24 subcontractor or supplier.

8-25 2. If the subcontractor objects pursuant to subparagraph (2) of

8-26 paragraph (c) of subsection 1, the subcontractor shall pay to his

8-27 subcontractor or supplier an amount that is equal to the value of the

8-28 corrections to which he does not object.

8-29 Sec. 27. Within 5 working days after a subcontractor receives a

8-30 written request from a subcontractor or supplier of his subcontractor or

8-31 supplier with respect to a subcontract which has not been fully

8-32 performed, he shall notify the subcontractor or supplier of his

8-33 subcontractor or supplier in writing of the following:

8-34 1. The date the subcontractor made a specified progress payment or

8-35 retainage payment to his subcontractor or supplier;

8-36 2. Whether the subcontractor has paid the entire amount of a

8-37 specified progress payment or retainage payment to his subcontractor or

8-38 supplier; and

8-39 3. The amount withheld by the subcontractor from a specified

8-40 progress payment or retainage payment to his subcontractor or supplier,

8-41 if any.

9-1 Sec. 27.3. Any release or waiver required to be provided by a

9-2 contractor, subcontractor or supplier to receive a progress payment or

9-3 retainage payment must be:

9-4 1. Conditional for the purpose of receiving payment and shall be

9-5 deemed to become unconditional upon the receipt of the money due to

9-6 the contractor, subcontractor or supplier; and

9-7 2. Limited to claims related to the invoiced amount of the labor,

9-8 materials, equipment or supplies that are the subject of the progress bill

9-9 or retainage bill.

9-10 Sec. 27.5. 1. A contractor who believes that the public body has

9-11 failed to perform a duty to:

9-12 (a) Make a payment;

9-13 (b) Provide written notice of any withholding; or

9-14 (c) Provide information upon request relating to any payment with

9-15 respect to a contract which has not been fully performed,

9-16 pursuant to one or more of the provisions of NRS 338.160 or sections 14

9-17 to 19, inclusive, of this act in a timely manner may apply to the district

9-18 court of the county in which the public work or a part thereof is located

9-19 for an alternate writ of mandamus pursuant to NRS 34.150 to 34.310,

9-20 inclusive, to require the public body to perform the duty required

9-21 pursuant to such a provision.

9-22 2. The provisions of this section do not prevent a public body from

9-23 including a provision governing the payment of attorney’s fees in a

9-24 contract into which it enters with a contractor for a public work.

9-25 Sec. 28. 1. A subcontractor or supplier who believes that the

9-26 amount withheld by the contractor or subcontractor is not justified or is

9-27 excessive may apply to the district court of the county where the public

9-28 work or a part thereof is located for an order directing the contractor or

9-29 subcontractor to appear before the court to show cause why the relief

9-30 requested should not be granted.

9-31 2. The motion must:

9-32 (a) Set forth the grounds upon which relief is requested; and

9-33 (b) Be accompanied by a notarized affidavit signed by the petitioner or

9-34 his attorney that sets forth the facts upon which the motion is based.

9-35 3. If the court orders a hearing based upon the motion, the petitioner

9-36 shall serve the notice of the motion and the order of the court on the

9-37 respondent within 3 days after the court issues the order. The court shall

9-38 conduct the hearing not less than 10 days and not more than 20 days

9-39 after the court issues the order for a hearing.

9-40 4. The order for a hearing must include a statement that, if the

9-41 respondent fails to appear at the time and place of the hearing, the court

9-42 will order the respondent to pay to the petitioner:

10-1 (a) The entire amount that was withheld by the respondent, or a

10-2 portion thereof;

10-3 (b) Interest on the amount that was withheld by the respondent, or a

10-4 portion thereof;

10-5 (c) The costs incurred by the petitioner, including, without limitation,

10-6 his attorney’s fees; or

10-7 (d) Any combination of paragraphs (a), (b) and (c).

10-8 5. If, when the motion is filed, there is a civil action pending between

10-9 the petitioner and the respondent, the motion must be consolidated into

10-10 the civil action.

10-11 6. If the court determines that:

10-12 (a) The amount withheld is not justified, the court shall order the

10-13 respondent to pay to the petitioner the amount that was withheld.

10-14 (b) The amount withheld is excessive, the court shall order the

10-15 respondent to pay to the petitioner an amount determined by the court.

10-16 (c) The amount withheld is justified, the court shall issue an order

10-17 approving the amount that was withheld by the respondent.

10-18 7. The proceedings conducted pursuant to the provisions of this

10-19 section do not affect any other rights or remedies provided by law or

10-20 contract.

10-21 Sec. 29. Each notice required pursuant to NRS 338.160, 338.165

10-22 and 338.170 and sections 2 to 33, inclusive, of this act must be:

10-23 1. Delivered personally; or

10-24 2. Sent by facsimile machine and delivered by regular or certified

10-25 mail.

10-26 Sec. 30. 1. A person may not waive or modify a right, obligation or

10-27 liability set forth in the provisions of NRS 338.160, 338.165 and 338.170

10-28 and sections 2 to 33, inclusive, of this act.

10-29 2. A condition, stipulation or provision in a contract or other

10-30 agreement that:

10-31 (a) Requires a person to waive a right set forth in the provisions of

10-32 NRS 338.160, 338.165 and 338.170 and sections 2 to 33, inclusive, of this

10-33 act; or

10-34 (b) Relieves a person of an obligation or liability imposed by the

10-35 provisions of NRS 338.160, 338.165 and 338.170 and sections 2 to 33,

10-36 inclusive, of this act,

10-37 is void.

10-38 Sec. 31. (Deleted by amendment.)

10-39 Sec. 32. 1. The court or arbitrator shall award to a contractor,

10-40 subcontractor or supplier who is the prevailing party in a civil action or

10-41 an arbitration proceeding to recover an amount that was required to be

11-1 paid to him pursuant to the provisions of NRS 338.160, 338.165 and

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

11-3 and attorney’s fees.

11-4 2. The provisions of NRS 338.160, 338.165 and 338.170 and sections

11-5 2 to 33, inclusive, of this act do not prevent a public body from including

11-6 a provision governing attorney’s fees in a contract for a public work.

11-7 Sec. 33. The provisions of NRS 338.160, 338.165 and 338.170 and

11-8 sections 2 to 33, inclusive, of this act do not impair or affect the rights of

11-9 a contractor, subcontractor or supplier to whom any amount may be

11-10 owed for work performed or materials, equipment or supplies furnished

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

11-12 contract to arbitration to recover that amount.

11-13 Sec. 34. NRS 338.010 is hereby amended to read as follows:

11-14 338.010 As used in this chapter:

11-43 public funds; and

12-1 (10) All other publicly owned works and property whose cost as a

12-2 whole exceeds $20,000. Each separate unit [which] that is a part of a

12-3 project is included in the cost of the project [for the purpose of

12-4 determining] to determine whether a project meets [this] that threshold.

12-5 (b) A building for the University and Community College System of

12-6 Nevada of which 25 percent or more of the costs of the building as a whole

12-7 are paid from money appropriated by the state or federal money.

12-8 6. "Wages" means:

12-9 (a) The basic hourly rate of pay; and

12-10 (b) The amount of pension, health and welfare, vacation and holiday

12-11 pay, the cost of apprenticeship training or other similar programs or other

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

12-13 7. "Workman" means a skilled mechanic, skilled workman, semiskilled

12-14 mechanic, semiskilled workman or unskilled workman.

12-15 Sec. 35. NRS 338.160 is hereby amended to read as follows:

12-16 338.160 1. Except as otherwise provided in [subsection 5,] section

12-42 manner, specified in a contract by the contractor or a subcontractor or

13-1 supplier for use in the construction, repair or reconstruction of the public

13-2 work; and

13-3 (c) Are in short supply or were specially made for the public work,

13-4 within 30 days after the public body receives a progress bill from the

13-5 contractor for those supplies, materials or equipment.

13-6 3. A public body shall pay or cause to be paid to the contractor at the

13-7 end of each quarter interest for the quarter on [the] any amount withheld by

13-8 the public body pursuant to NRS 338.160, 338.165 and 338.170, and

13-9 sections 2 to 33, inclusive, of this act at a rate equal to the rate quoted by

13-10 at least three financial institutions as the highest rate paid on a certificate of

13-11 deposit whose duration is approximately 90 days on the first day of the

13-12 quarter. If the amount due to a contractor pursuant to this subsection for

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

13-14 (a) The end of a subsequent quarter after which the amount of interest

13-15 due is $500 or more;

13-16 (b) The end of the fourth consecutive quarter for which no interest has

13-17 been paid to the contractor; or

13-18 (c) The amount withheld under the contract is due pursuant to

13-19 [subsection 4,] section 14 of this act,

13-20 whichever occurs first.

13-21 4. [Except as provided in subsection 5, the amount withheld under any

13-22 such contract is due within a reasonable time following the filing of a notice

13-23 of completion as provided in NRS 108.228 or upon other proper evidence

13-24 of satisfactory completion of the contract.

13-25 5.] If the labor commissioner has reason to believe that an employee

13-26 has a valid and enforceable claim for wages against a contractor, he may

13-27 require the public body to withhold from any payment due the contractor

13-28 under this section and pay the labor commissioner instead, an amount equal

13-29 to the amount claimed by the employee. This amount must be paid to the

13-30 employee if the claim is resolved in his favor, otherwise it must be returned

13-31 to the public body for payment to the contractor.

13-32 Sec. 36. NRS 338.165 is hereby amended to read as follows:

13-33 338.165 [1.] Except as otherwise provided in NRS 338.170 [, each]

13-43 executed plus 2 percent, from 15 days after the date on which the money

14-1 was received by the contractor until the date of payment.] progress bill or

14-2 retainage bill and any accrued interest thereon.

14-3 2. A contractor shall make payments to his subcontractor or supplier

14-4 in an amount equal to that subcontractor’s or supplier’s basis in the

14-5 payments paid by the public body to the contractor for the supplies,

14-6 material and equipment identified in the contract between the contractor

14-7 and the public body, or between the subcontractor or supplier and the

14-8 contractor, within 10 days after the contractor has received a progress

14-9 payment or retainage payment from the public body for those supplies,

14-10 materials and equipment.

14-11 Sec. 37. NRS 338.170 is hereby amended to read as follows:

14-12 338.170 1. [When] If a public body and a contractor enter into a