Issuing a preliminary notice in Nevada can significantly accelerate payment for construction projects. This document, usually sent early in the project timeline, informs the property owner about the work and the party involved. Here’s an overview of the key guidelines and conditions for submitting a Nevada preliminary notice.
Key Takeaways
- Timely Notice Submission: In Nevada, sending a Notice of Right to Lien within 31 days of starting work or providing materials is essential to protect lien rights, while residential projects require a Notice of Intent to Lien at least 15 days before filing a lien claim.
- Who Needs to Send Notices: Subcontractors and suppliers without a direct contract with the property owner must send a Notice of Right to Lien for private projects, while prime contractors must issue a Notice to Owner/Subcontractor to protect their interests.
- Proper Delivery Method: Notices must be delivered via certified mail or in-person to ensure valid service. Nevada law requires that notices are considered served only when they are actually received by the property owner.
Who Needs to Send a Nevada Preliminary Notice on Private Projects?
In Nevada, several notices may be necessary for private construction projects to protect the right to file a mechanics lien.
Here’s an overview of each type:
Notice of Right to Lien
For any claimant who didn’t directly contract with the property owner—excluding those providing only labor—a Nevada preliminary notice (known as a Notice of Right to Lien) must be sent to preserve lien rights.
Notice of Intent to Lien
In Nevada, a Notice of Intent to Lien is required for potential lien claimants on residential projects, except for wage laborers.
108.246 Notice
Generally, prime contractors aren’t obligated to issue notices except for the Notice of Intent to Lien on residential projects. However, they must provide a lien information notice to both the owner and subcontractors. While missing this notice doesn’t invalidate mechanics lien rights, it can result in a penalty from the Nevada State Contractors Board.
Who Needs to Send a Nevada Preliminary Notice on Public Projects?
For public works projects exceeding $100,000, any claimant without a direct contract with the primary contractor must send a preliminary notice to protect their right to make a claim on the public payment bond. The sole exception applies to highway construction projects, where sending a preliminary notice is not required.
What’s the Deadline to Send a Nevada Preliminary Notice?
Notice of Right to Lien
The Notice of Right to Lien Nevada can be issued anytime following the initial supply of labor or materials under a contract. However, to ensure complete protection, it’s best to send this notice within 31 days of the first contribution of labor or materials to the project.
Who Do I Need to Send the Nevada Preliminary Notice To?
Notice of Right to Lien
In Nevada, a Notice of Right to Lien is typically sent to the property owner, with a copy also provided to the prime contractor. Failing to notify the prime contractor does not eliminate lien rights, and it can lead to disciplinary action from the Nevada State Contractors Board.
What Information is Required on a Nevada Preliminary Notice?
Notice of Right to Lien
The Nevada Notice of Lien Rights must follow the format outlined in NRS §108.245 and include the following details:
- Name and address of the property owner
- Brief description of the labor, materials, or services provided
- Property description or street address
- A statement indicating the labor, materials, or services were supplied under contract
- Name of the party who hired the claimant
- Required notice language
This notice is not an indication that payment has not been or will not be received. Instead, it serves as a legal notice that the undersigned may file a preliminary lien notice Nevada against the property in the future if payment is not made.
How Should a Nevada Preliminary Notice Be Sent?
Notices can be delivered in person or sent via certified mail with a return receipt requested. Using certified mail is often the preferred method, as it offers reliable documentation of the date the notice was both sent and received.
Is a Nevada Preliminary Notice Considered Served When Sent or When Received?
In Nevada, a Notice of Right to Lien is deemed served only when the property owner actually receives it. This was reinforced by a recent ruling from the Nevada Supreme Court, which determined that the lien notice must be physically received to be considered valid.
What If I Send the Nevada Preliminary Notice Late?
If the notice is not sent within the first 30 days of the project, it doesn’t invalidate the claim. While a late preliminary notice is still effective, the protection is limited to the value of labor or materials provided in the 30 days before the notice was served, as well as any subsequent work. However, failing to provide any notice at all will forfeit the right to make a claim on the bond.
About Nevada Preliminary Notices
Nevada follows a traditional “notice state” approach, meaning that project participants must generally send preliminary notices (also known as a Notice of Right to Lien or 31-day Notice) to preserve their right to file a mechanics lien in the event of nonpayment.
Typically, all participants in a Nevada project must issue a Notice of Right to Lien within 31 days of the first delivery of labor or materials. However, this requirement does not apply to those who have a direct contract with the property owner or to wage laborers (those employed by a project participant). Those who are required to send the notice must direct it to both the property owner and the general contractor.
While direct contractors are exempt from the general 31-day notice, they are not exempt from all notice obligations. Nevada law mandates that direct contractors send a specific “lien information notice” (also referred to as a Notice to Owner/Subcontractor), as outlined in NRS Section 108.246. While failing to send this notice does not prevent a contractor from filing a lien, they may face penalties from the State Contractors Board for not providing this notice to property owners and subcontractors.
Additionally, for residential projects in Nevada, a notice of intent to lien must be delivered to the owner at least 15 days before filing a lien if the payment dispute has escalated. Unlike other states, serving this notice extends the time period for filing a lien by an additional 15 days.
How to Send Preliminary Notice in Nevada?
Contractors and suppliers working in Nevada should know the state’s preliminary notice requirements, a crucial part of the mechanics lien process. These notices are essential not only to secure the right to file a mechanics lien but also to help ensure timely payments. Understanding these requirements can make a significant difference in protecting your interests.
Here’s a comprehensive guide to Nevada preliminary notice procedures.
Overview of Nevada Preliminary Notices
In Nevada, construction projects require various preliminary notices based on the specific circumstances. The state operates as a “notice state,” meaning certain notice forms are mandatory to protect your lien rights.
There are three primary types of notices under Nevada law:
- Notice of Right to Lien – A general notice for non-residential projects.
- Notice of Intent to Lien – A notice is required for residential projects.
- Notice to Owner/Subcontractor – A notice for prime contractors to send to the property owner and subcontractors.
Confused? You’re not alone. Contractors often ask if their Notice to Owner serves as a Notice of Right to Lien, but the answer is no. These are distinct notices with different requirements.
Why Send a Preliminary Notice?
First and foremost, if the law requires it, sending the preliminary notice is a must. While no one expects payment issues during a project, securing your right to file a lien is essential in case things go wrong. Even when it’s not strictly required, sending a Nevada preliminary notice provides several advantages, including:
- Getting noticed by higher-ups: Construction projects can have many layers, and upper management or property owners might not be aware of all participants. By sending a notice, you make sure they know exactly who you are and what services or materials you are providing, helping speed up payments.
- Protecting lien rights: If you don’t send the required notices, you risk losing your ability to file a lien. Sending the notice ensures your rights are preserved, even if you end up in a payment dispute.
Preliminary Notice Requirements in Nevada
In Nevada, contractors or suppliers who don’t have a direct contract with the property owner must send a Notice of Right to Lien. The exception applies to those who are only providing labor. This notice must be sent to the property owner and the prime contractor.
For residential projects, the Notice of Intent to Lien must be sent by the same parties required to send the Notice of Right to Lien, but only if they do not have a direct contract with the property owner. This includes subcontractors and suppliers.
Prime contractors are the only ones obligated to send a Notice to Owner/Subcontractor. This notice must be delivered to both the property owner and all subcontractors and suppliers involved in the project.
Essential Information for a Preliminary Notice
Here’s what a Notice of Right to Lien should include:
- Property owner’s name and address
- Description of labor, materials, or services provided
- Property address or description
- Hiring party’s information
- Required notice language stating that the sender may file a lien if not paid
For a Notice of Intent to Lien, which is specific to residential projects, the notice should also include:
- Original contract price
- Additional charges for work or materials
- Total lien amount (after any credits or payments)
- Property owner and hiring party details
- Property description and notarization
The Notice to Owner/Subcontractor is a much simpler notice and just needs to include project details, along with the statutory language required by Nevada law.
Preliminary Notice Timeline
A Notice of Right to Lien must be served within 31 days of starting work or providing materials. After this period, it will only protect lien rights for work done and materials supplied within the previous 31 days and beyond.
For residential projects, the Notice of Intent to Lien must be sent at least 15 days before filing a lien claim. Sending this notice extends the deadline for filing the lien by 15 days, offering additional time to resolve the issue.
Prime contractors must send the Notice to Owner/Subcontractor before the construction contract is signed, which can be included as part of the contract terms.
Method of Delivery
In Nevada, all preliminary notices can be delivered via personal service or by certified mail. Certified mail is recommended because it provides proof of delivery. As a recent Nevada Supreme Court ruling clarified, a Notice of Right to Lien and other notices are only valid if actually received. Therefore, ensure the notice is delivered and confirmed properly to avoid issues.
Get in Touch
Understanding and adhering to Nevada preliminary notice requirements is crucial for contractors and suppliers to protect their lien rights and ensure timely payments on construction projects. By issuing the necessary notices—whether it’s the Notice of Right to Lien, Notice of Intent to Lien, or Notice to Owner/Subcontractor—contractors can safeguard their interests and avoid potential legal and financial setbacks.
Timely and correct delivery of these notices, especially within the stipulated deadlines, ensures that all parties are aware of their rights and responsibilities, ultimately helping to avoid payment disputes and maintain a smooth project flow.
At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We provide expert guidance, helping contractors and suppliers safeguard their payment rights through seamless and timely preliminary notice and lien filings.
We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a preliminary notice and mechanics lien, give us a call or shoot us an email.
