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If there is a bon in the contract do I still need a preliminary notice?

We have a contract with a gc on a private commercial building. I am having trouble collecting information on the owner to file our preliminary notice but our contract mentions a bond (I also have not been given information on the bond company) do I still need to file a preliminary notice? How do I go about getting the information I need? What if they don't give me the information within the 20 days of starting work?

1 reply

Jul 24, 2018

That's a great question. Nevada has unique - and extensive - rules regarding bonding on private projects. Under NRS § 108.2415(2), a party may file a bond (equal to 1.5 times the price of the prime contract) with the office of the county recorder in the county in which the project is located. If this is done, all prospective and existing lien rights of lien claimants will be released. Instead, recovery will come against the filed bond. Of course, there are other requirements beyond just recording the bond. Under Under NRS § 108.2415(4)(c), the party filing the bond must serve a file-stamped copy of the recorded bond to any lien claimant or prospective lien claimant that has provided or thereafter provides the owner or lessee with a Notice of Right to Lien. So, a party who wishes to either preserve their right to lien or to later file a bond claim must send the Notice of Right to Lien as required by Nevada statute - within 31 days of first furnishing labor and materials. Once that Notice of Right to Lien is sent and received, the party who posted the bond must serve the copy of the bond within 10 days. That copy of the bond should provide all pertinent information for later establishing a bond claim on the project. If a copy of the bond is not served upon the party who sent a Notice of Right to Lien, the deadlines applicable to bond claims will be tolled appropriately.

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