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Bond Claim Notices

 

Nevada

  1. Basics of an NV Payment Bond (Public & Private Works).
  2. NV Notice Requirements (Public & Private Works).
  3. Enforcing an NV Payment Bond (Public & Private Works).

Basics of an NV Payment Bond
A surety bond is comprised of a surety company (the “surety”) that guarantees to one party (the “obligee”) that a second party (the “principal”) will perform its obligation otherwise the surety will step in to honor the obligation. Under a Nevada Little Miller Act Payment Bond, the general/prime contractor (the “principal”) purchases a surety bond to assure the property owner/public entity (the “obligee”) that payment will be made to the lower tier contractors and suppliers (the beneficiaries of the payment bond). If payment is not made, the surety and principal are liable for redering payment. The payment bond is very useful if the general/prime contractor or the person who hired you goes bankrupt.

The Nevada payment bond laws are often referred to as the “Little Miller Act” because it resembles the federal payment bond laws which are referred to as the “Miller Act.” On all Nevada public work projects that exceed $100,000, the general/prime contractor must post a payment bond to ensure that certain lower tier contractors and material suppliers are paid.[1]

OPTIONAL PAYMENT BOND FOR PRIVATE WORK PROJECTS: Although not required, a payment bond may be posted by a general/prime contractor on a private works project. Payment bonds are rarely used for private projects because of the unnecessary additional costs.

List of Cited Statutes and Case Laws for further research
[1] Nevada Revised Statutes § 339.025.

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