WHAT TO DO WHEN MECHANIC’S LIENS AND BOND CLAIMS DON’T CUT IT 2 Advanced Strategies to Ensure You Get Paid!
On the front of our newsletter, Jerry shared two ways for Nevada contractors and subcontractors to collect money from stubborn clients. But what if those options don’t work for your situation or don’t convince your client to pay up?
If you’re trying to get paid for work you did as a subcontractor in Nevada and have an indemnification agreement, then you have pure gold. Anyone who owes you and has assets will quickly pay up. Strategy No. 2: Leverage the Power of the Prompt Payment Act The Prompt Payment Act is a unique Nevada statute. You won’t find another one like it anywhere else in the country. (There is a federal statute called the U.S. Prompt Payment Act, but that’s different.) Nevada’s Prompt Payment Act has unique features that can speed up your payment timeline and give you leverage in a payment situation vis-a-vis the owner or the general contractor. You simply need to follow the protocol laid out in the statute. That protocol includes documenting your claim, communicating your claim, and following the prescribed steps. This will clarify your rights and any issues will be fixed early on — especially if the general contractor and the owner don’t do their homework and document their response to your claim. Several other tools are available within Nevada’s Prompt Payment Act, too, if you know where to dig. Want to learn even more tips and tricks to unlock your paychecks? Scan the QR code on this page to download our free guide, “How Do Contractors Get Paid in Full for Their Nevada Construction Work?”
In that case, you can try two other more advanced strategies.
Strategy No. 1: Call Upon Your Indemnity Agreement This strategy often flies under the radar. You won’t read much about it, and you won’t see much about it. But often, when the state contractor’s board licenses a general contractor or even a subcontractor to perform work in Nevada, in addition to making them post a license bond, the state will ask them to sign an indemnity agreement. When that happens, the indemnity agreement is very broadly worded. The amount of liability is pretty much unlimited, and it functions like a personal guarantee. Two or three owners or officers of a company might sign this agreement, and to leverage it, you need to ask the contractor’s board to provide you with a copy. An indemnification agreement lasts forever — or until you write a letter to the contractor’s board revoking it. Even then, it will still be in effect for all previous jobs.
This guide isn’t just for construction workers — it includes free, helpful information for every Nevada contractor and subcontractor!
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