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Nevada Revised Statutes
The State of Nevada has several statutes pertaining to construction in Nevada. These laws relate to certain requirements for tenant improvement build-outs, as well as obligations of contractors, construction control, filing of mechanics' liens and the Nevada-mandated format of lien waivers (release forms).
When you enter into an agreement with a voucher company, certain statutes will be referenced within that document. This section lists a summary of those statutes, along with a brief description of their content and a link to the statutes themselves should you want to read them in their entirety.
While this page is not intended to be a substitute for legal interpretation, please don't hesitate to contact us if you have any questions. We will be glad to explain the statutes further or, if necessary, obtain a legal opinion as to the exact meaning of a particular statute.
NRS CHAPTER 627 - DISBURSEMENT OF MONEY BY CONSTRUCTION CONTROLS
This chapter of the NRS is known as "The Voucher Statute". These are the rules and regulations that construction control companies are statutorily obligated to follow. NRS 627 defines terms used throughout the statute and lists statutory bonding requirements of construction control companies.
Section 627.190
This section is the most important section of NRS 627 for voucher companies. It outlines the duties and liabilities of construction control.
NRS CHAPTER 108 - TENANT IMPROVEMENT SECTIONS
Sections 108.2403-108-2415
These sections are critical for Tenants/Lessees and Owners/Lessors. They are commonly referred to as the "TI Statutes" within the construction industry.
Under NRS 108.2403, any Tenant who is constructing or improving space under a lease agreement within a building owned by another party (the Lessor), is obligated to
a) retain the services of a construction control company for disbursement of the construction funds
or
b) obtain a surety bond equal to 150% of the contract amount for the improvements
If the Tenant elects to utilize a voucher control company's services, he is legally obligated under this statute to place the total amount of construction funds as indicated in the Tenant/Prime Contractor Construction Contract into an escrow with the construction control company. In either case, the Tenant is required to record a Notice of Posted Security with the County Recorder within the County in which the improvement is located.
Prime contractors, subcontractors and material suppliers frequently send a form to Tenants via certified mail. This form is known as a "Notice of Right to Lien" or "Preliminary Notice of Right to Lien". Under NRS 108.2403, Tenants are required to serve a copy of the recorded Notice of Posted Security (discussed in the paragraph above) within 10 days of receipt of the Notice of Right to Lien. Service may be by personal delivery or certified mail, return receipt requested. This task and the recording of the Notice of Posted Security are required regardless of the Tenant's choice of using a construction control or posting of a surety bond.
NRS CHAPTER 108 - STATUTORY LIENS SECTIONS
NRS Chapter 108 also addresses matters related to Mechanics' and Materialmen's Liens, as well as lien waiver format & verbiage.
Section 108.221
This section defines the terms used in the remainder of NRS 108.
Section 108.228
This section defines in detail rules and regulations regarding Notices of Completion. Owners are not required to record this Notice: however, recordation of the Notice of Completion significantly reduces the time period for the filing of Mechanics' Liens.
***This form is posted on our "Download Forms" tab in Adobe Acrobat format for your convenience.
Sections 108.222-108.227 and Sections 108.229-246
These sections address Mechanics' & Materialmen's liens in detail. They indicate which parties may or may not legitimately claim a lien and outline the Nevada-required form for filing of liens. In addition, they regulate the legal amounts of liens, priority of liens, perfection of liens and time limits for recording liens. These sections also include information regarding the required method of service of recorded liens to Owners and Prime Contractors, define frivolous liens & set out remedies available to Owners for frivolous liens.
Section 108.2457.5
This section contains samples of the Nevada-recognized and NRS-acceptable lien waivers as well as instructions regarding font size, verbiage, etc. on the lien waivers (releases). Nevada lien waivers are not valid if they deviate from this section of the statute. The forms are entitled:
- CONDITIONAL WAIVER AND RELEASE UPON PROGRESS PAYMENT
- UNCONDITIONAL WAIVER AND RELEASE UPON PROGRESS PAYMENT
- CONDITIONAL WAIVER AND RELEASE UPON FINAL PAYMENT
- UNCONDITIONAL WAIVER AND RELEASE UPON FINAL PAYMENT
***These forms are posted on our "Download Forms" tab in Adobe Acrobat format for your convenience.
NRS CHAPTER 624 - CONTRACTORS
This chapter of the NRS deals with statutory obligations and requirements of Contractors relative to the Nevada State Contractors' Board, along with regulations regarding classification and issuance of licenses. It also addresses Contractors' relations with Owners, Lower-Tiered Subcontractors and Suppliers.
Section 624.606
This section regulates Agreements between Owners and Prime Contractors.
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