Sending a Nevada preliminary notice is an effective way to speed up payment on a construction project. A preliminary notice is an informational document typically sent to the property owner near the beginning of a construction project. Here's what you need to know about the rules and requirements for sending preliminary notice in Nevada.
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GC's are not required to send a general 31-day preliminary notice. GC's must send a notice of intent to lien instead.
Additionally, if not contained within their contract itself, direct contractors should provide a "lien information notice" to owners and subs.
General contractors are not required to send notice.
On public jobs in Nevada, any claims for non-payment are made against the general contractor's bond. Since GCs will not make a claim against their own bond for non-payment, they do not have bond claim rights, and have no preliminary notice requirement.
Subcontractors and suppliers are required to send preliminary notice.
Notice to owner and prime within 31 days of first furnishing labor or materials. Notice of Intent 15 days prior to lien on residential projects (not required for laborers).
2nd-tier subcontractors and suppliers must send notice.
1st-tier subs are not specifically required to send notice, but it may be a good idea to do so anyway. Notice is not specifically required for any party on highway construction projects.
TopicIf you're sending preliminary notices in Nevada, it's important to get all the details right. There are multiple notices that may be required, and all apply to different situations and parties. If you're receiving prelims, it's important to know what you're looking at and know what to do in followup. Since prelims are subject to a lot of complex rules and requirements, this can all be difficult. These are some frequently asked questions about the Nevada preliminary notice process.
There are a few different types of notices that may be required on Nevada private construction projects to secure the right to file a mechanics lien. Let’s break down each individually.
Notice of Right to Lien
Every claimant who didn’t contract directly with the property owner, other than those who perform only labor, must send a Nevada preliminary notice (Notice of Right to Lien) to secure the right to file a lien.
Notice of Intent to Lien
Nevada also has a Notice of Intent to Lien requirement for all potential lien claimants on residential projects (with the exception of wage laborers). For more on these requirements, see: Nevada Notice of Intent to Lien Guide & FAQs
108.246 Notice
Lastly, although general contractors aren’t typically required to provide notice (except the Notice of Intent to Lien on residential projects), there is a certain lien information notice that must be provided to the owner and subcontractors. Failure to do so isn’t fatal to lien rights, but the contractor may be assessed a penalty by the Nevada State Contractors Board.
Notice of Right to Lien
A Notice of Right to Lien may be served at any time after the first delivery of labor and/or materials under a contract. However, for full protection, the notice should be served within 31 days of first furnishing labor and/or materials to the project.
Notice of Right to Lien
Generally, a Nevada Notice of Right to Lien must be served on the property owner. A copy of the notice should also be served on the prime contractor. The failure to provide notice to the prime contractor isn’t fatal to lien rights, but it is grounds for disciplinary proceedings by the Nevada State Contractors Board.
Notice of Right to Lien
A Nevada Notice of Lien Rights must be in substantially the same form as provided under NRS §108.245, and contain the following information:
• Owner’s name & address
• General description of labor, materials, or services provided
• Property description or street address
• Statement that the labor, materials, or services were provided under contract
• Hiring party’s name
This is not a notice that the undersigned has not been or does not expect to be paid, but a notice is required by law that the undersigned may, at a future date, record a Notice of Lien as provided by law against the property if the undersigned is not paid.
Notices may be served by personal delivery, or sending the notice by certified mail, with return receipt requested. Certified mail may be the best option as it provides accurate proof of the date notice was sent and received.
In Nevada, a Notice of Right to Lien is considered served when actually received by the owner. This was further clarified in a recent NV Supreme Court which held that actual receipt is required in order for a Notice of Right to Lien to be valid.
Notice of Right to Lien
The Notice of Right to Lien may be served at any time prior to the recording of the lien. However, the notice is only effective as to work performed or materials furnished within 31 days from the service of the notice. This means that if the notice is served later than 31 days from first furnishing labor or materials, the work done prior to 31 days before service is not protected by the mechanics lien.
On any public works project over ($100K) all claimants who didn’t directly contract with the prime contractor are required to send a preliminary notice to secure the right to make a claim against the public payment bond. The only exception to this requirement is if the project is a highway construction project. In that case, no preliminary notice is necessary.
To secure the full protection of the payment bond, the notice must be served on the prime contractor no later than 30 days after the first date of furnishing labor and/or materials to the project.
The Nevada public preliminary notice, when required, must be served on the prime contractor who posted the bond on the project. However, it may be a good idea to send a copy to the surety company who provided the bond as well.
When required, preliminary notice should ideally be received by the general contractor within 30 days of the claimant first furnishing materials or labor for full protection.
To be a valid notice on public works projects in Nevada, the notice must include:
• Claimant’s name & address
• General description of the labor and/or materials furnished or to be furnished on the project
• Hiring party’s name
• Identification of the site of the project
Notice should be sent by registered or certified mail to “any place the contractor maintains an office or conducts business, or at the residence of the contractor.”
This notice is presumably only valid when the contract has “actual knowledge,” therefore its best practice to assume that actual receipt is required.
If notice wasn’t provided within the first 30 days on the project, all is not lost. Late notice is still valid, however the amount of protection will be limited to the value of labor and/or materials furnished in the 30 days prior to service of the notice, and everything thereafter. But failure to provide notice at all is fatal to a party’s bond claim rights.
I hope this may help you with your question! https://www.levelset.com/blog/nevada-preliminary-notice-guide/
Answered by Chris Ng | AttorneyIf you have a contract directly with the owner, then you are required to provide the notice included within NRS 108.246. The purpose of the "Notice of Right to Lien" is to give the owner of the property notice that the subcontractor or supplier exists and that they are providing labor and/or materials to the project. This helps the owner protect itself by knowing who is working on the project and it allows the owner to require that the General Contractor provide lien releases throughout the project for those subs. When you have a contract directly with the owner, the owner knows if it pays or not. Please be aware that NRS 624 requires the general contractor for residential construction to provide a list of subcontractors working on the project , as well as a notice outlining the lien statute and the recovery fund options.
Answered by Tony May | Managing AttorneyDepending on a participant's role in the project, there could be potentially two "preliminary" notices required in order to retain the ability to file a mechanics lien - a 31-day preliminary notice of right to lien, and a notice of intent to lien.
The notice of right to lien may be sent at any time prior to the recording of the lien, even if the 31-day deadline has passed. However, the notice is only effective as to work performed or materials furnished within 31 days from the service of the notice. This means that if the notice is served later than 31 days from first furnishing labor or materials, the work done prior to 31 days before service is not protected by the mechanics lien.
The notice of intent to lien may not be sent late - but since the notice of intent to lien extends the time period for recording the lien by 15 days, approaching the lien filing deadline should not bar sending the notice such that the lien may still be protected.
Answered by Nate Budde | Levelset AdminNevada is a traditional “notice state” in that Nevada preliminary notices (also called a Notice of Right to Lien or 31-day Notice) are generally required to be sent by project participants in order to retain the right to file a mechanics ien in the event of nonpayment.
Typically all project participants in Nevada are required to send a Notice of Right to Lien within 31 days of the date that labor and/or materials were first provided. This requirement does to apply to parties who contracted directly with the property owner or wage laborers (employees of a project participant). for parties for whom it is required, the Notice of Right to Lien must be sent to both the property owner and the general contractor.
Just because they are exempt from the general 31-day Notice of Right to Lien requirement doesn’t mean the direct contractors are exempt from all notice requirements, however. There is a specific notice in Nevada, which can be called a Notice to Owner/Subcontractor or a “lien information notice” that is supposed to be provided by a direct contractor. This notice is set forth by NRS Section 108.246, and while it doesn’t impact the ability of a direct contractor to file a valid lien claim, they may be assessed a penalty by the State Contractors Board if they do not deliver a copy of the lien information notice to property owners and each subcontractor on a project.
In addition to the above requirements, there is an additional notice required for residential projects. On all Nevada residential projects, a notice of intent to lien is required to be provided to the owner at least 15 days prior to filing a lien if a payment dispute has escalated to the point where a lien filing is required. Unlike in many states, the service of this notice of this notice of intent extends the period in which a lien may be filed for period for 15 days.
