NRS 408.383
Contractor: Partial payments

  • percentage retained
  • final inspections
  • substitution of certain obligations for retained payments
  • period for dispersal of money by contractor to subcontractors
  • rate of interest on delinquent dispersal
  • procedure for resolution of dispute over dispersal.

1.

Except as otherwise provided in subsections 2, 12 and 13, the Director may pay at the end of each calendar month, or as soon thereafter as practicable, to any contractor satisfactorily performing any highway improvement or construction as the work progresses in full for the work as completed but not more than 97.5 percent of the entire contract price. The progress estimates must be based upon materials in place, or on the job site, or at a location approved by the Director, and invoiced, and labor expended thereon. The remaining 2.5 percent must be retained until the remaining money is disposed of in the manner provided in subsection 3 or 4, as applicable.

2.

If the work in progress is being performed on a satisfactory basis, the Director may reduce the percentage retained if the Director finds that sufficient reasons exist for additional payment and has obtained written approval from every surety furnishing bonds for the work. Any remaining money must be retained until such money is disposed of in the manner provided in subsection 3 or 4, as applicable.

3.

Upon receiving notice from the contractor of the completion of all work under a contract for a project of highway improvement or construction, the Department shall perform a final inspection of such work. If the final inspection discloses that any work, in whole or in part, is unsatisfactory, the Department will provide the contractor with notice of the deficiencies in such work that require correction before the work will be considered completed satisfactorily. Upon receiving notice from the contractor that any such unsatisfactory work has been corrected, the Department shall conduct another final inspection. If a final inspection discloses that all work under a contract for a project of highway improvement or construction has been completed satisfactorily, the Director shall reduce any money being retained pursuant to subsection 1 to not more than $50,000, not later than 30 days after such final inspection. Any remaining money must be retained until the entire contract is completed satisfactorily and accepted by the Director.

4.

If it becomes necessary for the Department to take over the completion of any highway contract or contracts, all of the amounts owing the contractor, including the withheld percentage, must first be applied toward the cost of completion of the contract or contracts. Any balance remaining in the retained percentage after completion by the Department is payable to the contractor or the contractor’s creditors.

5.

Such retained percentage as may be due any contractor is due and payable at the expiration of the 30-day period as provided in NRS 408.363 for filing of creditors’ claims, and this retained percentage is due and payable to the contractor at that time without regard to creditors’ claims filed with the Department.

6.

The contractor under any contract made or awarded by the Department, including any contract for the construction, improvement, maintenance or repair of any road or highway or the appurtenances thereto, may, from time to time, withdraw the whole or any portion of the sums otherwise due to the contractor under the contract which are retained by the Department, pursuant to the terms of the contract, if the contractor deposits with the Director:

(a)

United States treasury bonds, United States treasury notes, United States treasury certificates of indebtedness or United States treasury bills;

(b)

Bonds or notes of the State of Nevada; or

(c)

General obligation bonds of any political subdivision of the State of Nevada.
Ê Certificates of deposit must be of a market value not exceeding par, at the time of deposit, but at least equal in value to the amount so withdrawn from payments retained under the contract.

7.

The Director has the power to enter into a contract or agreement with any national bank, state bank, credit union, trust company or safe deposit company located in the State of Nevada, designated by the contractor after notice to the owner and surety, to provide for the custodial care and servicing of any obligations deposited with the Director pursuant to this section. Such services include the safekeeping of the obligations and the rendering of all services required to effectuate the purposes of this section.

8.

The Director or any national bank, state bank, credit union, trust company or safe deposit company located in the State of Nevada, designated by the contractor to serve as custodian for the obligations pursuant to subsection 7, shall collect all interest or income when due on the obligations so deposited and shall pay them, when and as collected, to the contractor who deposited the obligation. If the deposit is in the form of coupon bonds, the Director shall deliver each coupon as it matures to the contractor.

9.

Any amount deducted by the State of Nevada, or pursuant to the terms of a contract, from the retained payments otherwise due to the contractor thereunder, must be deducted first from that portion of the retained payments for which no obligation has been substituted, then from the proceeds of any deposited obligation. In the latter case, the contractor is entitled to receive the interest, coupons or income only from those obligations which remain on deposit after that amount has been deducted.

10.

A contractor shall disburse money paid to the contractor pursuant to this section, including any interest that the contractor receives, to his or her subcontractors and suppliers within 15 days after receipt of the money in the proportion that the value of the work performed by each subcontractor or the materials furnished by each supplier bears to the total amount of the contract between the principal contractor and the Department.

11.

Money payable to a subcontractor or supplier accrues interest at a rate equal to the lowest daily prime rate at the three largest banks in the United States on the date the subcontract or order for supplies was executed plus 2 percent, from 15 days after the money was received by the principal contractor until the date of payment.

12.

If a contractor withholds more than 2.5 percent of a payment required by subsection 10, the subcontractor or supplier may inform the Director in writing of the amount due. The Director shall attempt to resolve the dispute between the contractor and the subcontractor or supplier within 20 working days after the date that the Director receives notice of the amount due. If the dispute is not resolved within 20 working days after the date that the Director receives notice of the amount due, the contractor shall deposit the disputed amount in an escrow account that bears interest. The contractor, subcontractor or supplier may pursue any legal or equitable remedy to resolve the dispute over the amount due. The Director may not be made a party to any legal or equitable action brought by the contractor, subcontractor or supplier.

13.

If the Director awards to a railroad company a contract for a project for the construction, reconstruction, improvement or maintenance of a highway and the project is located on property that is owned by or under the control of the railroad company, the Director may agree in the contract not to retain any portion of the contract price.

Source: Section 408.383 — Contractor: Partial payments; percentage retained; final inspections; substitution of certain obligations for retained payments; period for dispersal of money by contractor to subcontractors; rate of interest on delinquent dispersal; procedure for resolution of dispute over dispersal., https://www.­leg.­state.­nv.­us/NRS/NRS-408.­html#NRS408Sec383.

408.010
Short title.
408.015
Rules of construction.
408.020
Definitions.
408.033
“Board” defined.
408.037
“Business” defined.
408.040
“City” defined.
408.042
“Conveyance system” defined.
408.045
“Department” defined.
408.046
“Director” defined.
408.047
“Displaced person” defined.
408.050
“Encroachment” defined.
408.056
“Family” defined.
408.057
“Farm operation” defined.
408.058
“Farmer” defined.
408.059
“Federal-aid highways” defined.
408.060
“Freeway” defined.
408.065
“Frontage road” defined.
408.067
“Grade line” defined.
408.070
“Highway” defined.
408.077
“Planning agency” defined.
408.078
“Public lands” defined.
408.080
“Rights-of-way” defined.
408.090
“Shall” and “may” construed.
408.095
“Town” defined.
408.100
Declaration of legislative intent.
408.106
Creation
408.115
Office.
408.118
Study of operations of Department: Legislative approval required.
408.119
Governor authorized to direct naming of state highway, road, bridge or transportation facility after deceased member of Armed Forces of United States
408.121
Adoption and use of seal
408.126
Meetings.
408.133
Plan for measuring performance of Department
408.141
Rules
408.146
Sale or lease of certain water rights to public utility
408.151
Loans from financial institutions
408.160
Director: Appointment
408.163
Director: Qualifications
408.170
Director: Other employment prohibited
408.178
Qualifications and classifications of Deputy Directors and Chief Engineer.
408.180
Oaths of Director and Deputy Directors.
408.185
Facsimile signatures of Director and Deputy Directors.
408.190
Duties of Director: General plan of highways
408.195
Duties of Director: General supervision of highways.
408.200
Duties of Director: Standards for construction and maintenance
408.201
Duties of Director: Policies for use of recycled materials in highways.
408.203
Duties of Director: Reports to Legislature.
408.210
Powers of Director: Closing and construction of highways
408.212
Powers of Director: Easements for monorail or other systems of transportation.
408.213
Powers of Director: Designation of highway as scenic route
408.214
Duties of Director: Designation of restricted highways.
408.220
Duties of Director: Reports to Board.
408.228
Highway Safety Information and Outreach Coordinator: Creation
408.233
Planning Division: Responsibilities and duties
408.234
Motor Vehicle Recovery and Transportation Planner: Creation
408.235
State Highway Fund: Creation
408.240
State Highway Revolving Account: Establishment
408.242
Establishment of nonreverting account for construction, reconstruction, improvement and maintenance of public roads consisting of money transferred from Fund for Cleaning Up Discharges of Petroleum and money from other sources
408.245
Acceptance of federal acts.
408.250
Federal acts: State highways
408.255
Federal acts: Secondary and feeder highways
408.260
Federal lands: Construction and maintenance of highways
408.270
Vouchers for payment
408.271
Department may expend money to conduct studies and match federal money for capital acquisitions.
408.273
Issuance of bonds.
408.275
Surveys, maps and studies of traffic
408.280
Program for work on highways: Contents
408.281
Program for work on highways: Inclusion of designated projects for use of recycled products.
408.283
Cooperative agreements between Department of Transportation and county commissioners.
408.285
State highways
408.290
Procedure for establishment of new routes.
408.303
U.S. Highway No. 6 designated as Grand Army of the Republic Highway
408.307
Comstock Highway: Designation
408.309
Designation of Route 94.
408.313
Manner of construction
408.317
Supervision of work by Director
408.319
Report of projects for construction and maintenance: Preparation
408.321
Consideration of motor vehicle recovery lanes, bicycle lanes, various services for bicycles and turnouts for slower vehicles.
408.323
Conditions for execution of work without contract
408.327
Advertisement for bids
408.333
Bids and bidders: Experience and financial ability
408.337
Bids and bidders: Security
408.343
Bids and bidders: Procedure for award of contract
408.346
Monetary incentive for early completion of contract.
408.347
Execution of contract in name of State
408.353
Interest of member of Board, officer or employee prohibited
408.354
Contract awarded to railroad company may provide under certain circumstances that railroad company is exempt from requirements concerning bonds.
408.357
Bids and bidders: Bonds required of successful bidders
408.363
Claims against contractor’s bond
408.367
Project not exceeding $250,000: Solicitation and rejection of bids
408.373
Contractor: Compliance with state laws concerning workers’ compensation and unemployment compensation
408.377
Subcontractor: Approval
408.379
Subcontractor: State business license required.
408.383
Contractor: Partial payments
408.387
Contract: Publication of notice of final acceptance
408.388
Projects for which Department may contract with design-build team.
408.393
Enforcement of laws concerning labor
408.397
Procedure for diversion or change of route of highway.
408.403
Freeways.
408.407
Reimbursement of utility by State for relocation of facility located on or near certain highways.
408.413
Improvement of state highway Route No. 81.
408.417
Guideposts, signs and markers: Erection
408.423
Permit required to excavate state highway
408.427
Unauthorized crossing, removal or destruction of control-of-access fence or barrier on highway: Injunction
408.433
Roadside parks and rest areas: Unlawful acts
408.439
Advisory Committee on Transportational Storm Water Management: Creation
408.441
Discharge of pollutant upon highway or right-of-way prohibited in certain circumstances
408.442
Entry and inspection of premises.
408.444
Violations: Remedies
408.446
Violations: Director authorized to issue order for compliance
408.448
Violations: Injunctive relief
408.449
Violations: Civil penalty
408.451
Director to conduct independent investigation before determining whether to take certain corrective actions
408.0465
“Discharge” defined.
408.487
Acquisition of property: Purposes.
408.489
Acquisition of property: Manner
408.493
Acquisition of property: Survey and location of right-of-way
408.497
Construction, alteration or improvement of highway: Claim for damage to land or interests
408.503
Eminent domain: Resolution by Board
408.507
Lease or rental of property.
408.513
Acquisition of property by towns and cities
408.517
Acquisition of property by counties
408.523
Summary vacation and abandonment of portion of state highway superseded by relocation or in excess of needs
408.527
Procedure for relinquishment of roadways
408.533
Disposal of property.
408.537
State consent to close public road on public land: Application
408.543
State consent to close public road on public land: Duties of Department.
408.547
State consent to close public road on public land: Determination by Board
408.548
Authority of Department to request submission of proposals
408.549
Federal, state or local assistance.
408.551
“Center” defined.
408.553
Designation of locations for signs and centers.
408.557
Regulations.
408.559
Development and review of plan.
408.561
Toll-free telephone system for public accommodations
408.562
Director’s recommendations for programs: Approval by Board
408.563
Agreements with governmental agencies or others.
408.567
Account for Systems of Providing Information to the Traveling Public: Creation
408.569
System of communication to report emergencies and to obtain information concerning conditions for driving required along certain frequently traveled highways.
408.571
Educational program: Duty of Department to develop
408.573
Nevada Bicycle and Pedestrian Advisory Board: Creation
408.577
Nevada Bicycle and Pedestrian Safety Advisory Board: Duties
408.579
Electric bicycles authorized for use on trails or walkways intended for use by bicycles.
408.601
Permits to solicit charitable contributions while standing on median strip of highway or sidewalk adjacent to highway.
408.2831
Contents of agreement.
408.2832
Priority of improvement projects
408.2833
Standards for project.
408.3195
Written analysis of costs and benefits of proposed highway projects: Contents
408.3875
Definitions.
408.3876
“Design-build contract” defined.
408.3877
“Design-build team” defined.
408.3878
“Prime contractor” defined.
408.3879
“Project” defined.
408.3881
Public meeting
408.3882
Procedure for selecting design-build team.
408.3883
Request for preliminary proposals: Advertisement by Department
408.3884
Qualifications of design-build team.
408.3885
Procedure for selecting finalists from among design-build teams that submitted preliminary proposals.
408.3886
Requests for final proposals and best and final offers: Selection or rejection of proposal or offer
408.3887
Employment of architect or engineer as consultant during construction.
408.3888
Certain submittals confidential until notice of intent to award contract is issued.
408.5471
“Transportation facility” defined.
408.5473
Authority of Department to authorize transportation facilities.
408.5475
Submission of request to Department
408.5483
Approval of request or proposal: Determination of public purpose
408.5484
Certain submittals confidential until notice of intent to award contract is issued.
408.5485
Contract for transportation services.
408.5501
Definitions.
408.5502
Agreement required for longitudinal or wireless access to right-of-way by telecommunications provider
408.55011
“Council” defined.
408.55012
“Longitudinal access” defined.
408.55013
“Permit” defined.
408.55014
“Right-of-way” defined.
408.55015
“Statewide telecommunications purposes” defined.
408.55016
“Telecommunications facility” defined.
408.55017
“Telecommunications provider” defined.
408.55018
“Utility facility” defined.
408.55019
“Wireless access” defined.
408.55021
Longitudinal or wireless access not granted where safety, efficiency or convenience of use by traveling public compromised.
408.55022
Costs of trenching and trench sharing to be proportionate and shared fairly among parties to agreement.
408.55023
Monetary compensation must be deposited in State Highway Fund
408.55024
Department may offer use of and access to spare conduit and related facilities to telecommunications provider: Requirements
408.55025
In-kind compensation: Types
408.55026
Two or more telecommunications providers: Agreements must require shared obligation for compensation
408.55027
Existing policies and procedures relating to utilities in rights-of-way not altered
408.55028
Telecommunications Advisory Council: Creation
408.55029
Regulations.
Last Updated

Jun. 24, 2021

§ 408.383’s source at nv​.us