2005 Nevada Revised Statutes - Chapter 339 — Contractors Bonds on Public Works

CHAPTER 339 - CONTRACTORS BONDS ON PUBLICWORKS

NRS 339.015 Definitions.

NRS 339.025 Performanceand payment bonds: Amount; conditions; filing with contracting body.

NRS 339.035 Actionson payment bonds by claimants.

NRS 339.045 Certifiedcopies of payment bonds and contracts to be furnished applicant by contractingbody; fee; copies as prima facie evidence.

NRS 339.055 Actionson payment bonds: Venue; limitation of actions.

NRS 339.065 Requirementthat bonds be furnished by particular surety company or through particularagent or broker unlawful; penalty.

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NRS 339.015 Definitions. As used in this chapter:

1. Claimant includes a natural person, firm,partnership, association or corporation.

2. Contracting body means the State, county, city,town, school district, or any public agency of the State or its politicalsubdivisions which has authority to contract for the construction, alterationor repair of any public building or other public work or public improvement.

(Added to NRS by 1963, 164; A 1983, 1361)

NRS 339.025 Performanceand payment bonds: Amount; conditions; filing with contracting body.

1. Before any contract, except one subject to theprovisions of chapter 408 of NRS, exceeding$100,000 for any project for the new construction, repair or reconstruction ofany public building or other public work or public improvement of anycontracting body is awarded to any contractor, he shall furnish to thecontracting body the following bonds which become binding upon the award of thecontract to the contractor:

(a) A performance bond in an amount to be fixed by thecontracting body, but not less than 50 percent of the contract amount,conditioned upon the faithful performance of the contract in accordance withthe plans, specifications and conditions of the contract. The bond must besolely for the protection of the contracting body which awarded the contract.

(b) A payment bond in an amount to be fixed by thecontracting body, but not less than 50 percent of the contract amount. The bondmust be solely for the protection of claimants supplying labor or materials tothe contractor to whom the contract was awarded, or to any of hissubcontractors, in the prosecution of the work provided for in such contract.

2. If a general contractor has been awarded acontract, except one subject to the provisions of chapter408 of NRS, by the State Public Works Board for any project for newconstruction, repair or reconstruction of any public building or other publicwork or public improvement, each of his subcontractors who will perform work onthe contract that exceeds $50,000 or 1 percent of the proposed project,whichever amount is greater, shall furnish a bond to the Board in an amount tobe fixed by the Board.

3. Each of the bonds required pursuant to this sectionmust be executed by one or more surety companies authorized to do business inthe State of Nevada. If the contracting body is the State of Nevada or anyofficer, employee, board, bureau, commission, department, agency or institutionthereof, the bonds must be payable to the State of Nevada. If the contractingbody is other than one of those enumerated in this subsection, the bonds mustbe payable to the other contracting body.

4. Each of the bonds must be filed in the office ofthe contracting body which awarded the contract for which the bonds were given.

5. This section does not prohibit a contracting bodyfrom requiring bonds.

(Added to NRS by 1963, 164; A 1981, 940; 1985, 359;1997, 2994, 3165; 1999,629; 2005, 1814)

NRS 339.035 Actionson payment bonds by claimants.

1. Subject to the provisions of subsection 2, anyclaimant who has performed labor or furnished material in the prosecution ofthe work provided for in any contract for which a payment bond has been givenpursuant to the provisions of subsection 1 of NRS339.025, and who has not been paid in full before the expiration of 90 daysafter the date on which he performed the last of such labor or furnished thelast of such materials for which he claims payment, may bring an action on suchpayment bond in his own name to recover any amount due him for such labor ormaterial, and may prosecute such action to final judgment and have execution onthe judgment.

2. Any claimant who has a direct contractualrelationship with any subcontractor of the contractor who gave such paymentbond, but no contractual relationship, express or implied, with suchcontractor, may bring an action on the payment bond only:

(a) If he has, within 30 days after furnishing thefirst of such materials or performing the first of such labor, served on thecontractor a written notice which shall inform the latter of the nature of thematerials being furnished or to be furnished, or the labor performed or to beperformed, and identifying the person contracting for such labor or materialsand the site for the performance of such labor or materials; and

(b) After giving written notice to such contractorwithin 90 days from the date on which the claimant performed the last of thelabor or furnished the last of the materials for which he claims payment. Eachwritten notice shall state with substantial accuracy the amount claimed and thename of the person for whom the work was performed or the material supplied,and shall be served by being sent by registered or certified mail, postageprepaid, in an envelope addressed to such contractor at any place in which hemaintains an office or conducts business, or at his residence.

(Added to NRS by 1963, 165; A 1969, 95)

NRS 339.045 Certifiedcopies of payment bonds and contracts to be furnished applicant by contractingbody; fee; copies as prima facie evidence.

1. The contracting body shall furnish a certified copyof any payment bond and the contract for which such bond was given to anyperson who makes an application for such copy and who submits an affidavitstating that:

(a) He has supplied labor or material for thecompletion of the work provided for in the contract, and that he has not beenfully paid for such labor or material;

(b) He is the defendant in an action brought on apayment bond; or

(c) He is surety in a payment bond on which an actionhas been brought.

2. Every such applicant shall pay for each certifiedcopy a fee fixed by the contracting body to cover the actual cost of thepreparation of such copy.

3. A certified copy of any payment bond and of thecontract for which such bond was given shall constitute prima facie evidence ofthe contents, execution and delivery of the original of such bond and contract.

(Added to NRS by 1963, 165)

NRS 339.055 Actionson payment bonds: Venue; limitation of actions.

1. Every action on a payment bond as provided in NRS 339.035 shall be brought in theappropriate court of the political subdivision where the contract for which thebond was given was to be performed.

2. No such action may be commenced after theexpiration of 1 year from the date on which the claimant performed the last ofthe labor or furnished the last of the materials for the payment of which suchaction is brought.

(Added to NRS by 1963, 166)

NRS 339.065 Requirementthat bonds be furnished by particular surety company or through particularagent or broker unlawful; penalty.

1. It is unlawful for any representative of acontracting body, in issuing an invitation for bids, to require that any bondspecified in NRS 339.025 be furnished bya particular surety company or through a particular agent or broker.

2. Any person who violates the provisions of thissection is guilty of a misdemeanor.

(Added to NRS by 1963, 166)

 

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