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Whether you鈥檙e a general contractor (GC), subcontractor, or property owner, understanding Nevada lien waivers is crucial. These essential documents function as receipts acknowledging payment up to a specific amount, thereby waiving the party鈥檚 right to file a lien against the property for that amount. While the concept is straightforward, the practical application of lien waivers can be complex.
Several types of lien waivers exist, each requiring submission at specific times during a project. (For a deeper dive into lien waiver basics, refer to The Ultimate Guide to Construction Lien Waivers for Subcontractors.) Moreover, lien waiver requirements vary by state, with each jurisdiction setting its own rules regarding valid forms, contents, and enforcement.
Understanding these nuanced requirements is important for subcontractors to maintain compliance, prevent payment disputes, and protect their financial interests. So grab your hard hat, and let鈥檚 dive into the world of Nevada lien waivers!
(For more general information on lien waivers, check out this on-demand webinar: End the Whack-a-Mole: Lien Waiver Best Practice for Subs.)
Nevada is part of a special club. As one of just 12 states that regulates lien waivers, it pays to pay attention to all the rules鈥攁nd follow them to a tee. Doing so will protect your lien rights at every stage of your construction project.
In Nevada, construction teams can exchange :
- conditional waiver and release upon progress payment,
- unconditional waiver and release upon progress payment,
- conditional waiver and release upon final payment, and
- unconditional waiver and release upon final payment.
While some states note that form language only needs to be followed substantially, Nevada asks that parties copy the form directly. This means parties shouldn鈥檛 add any additional fields; this move could take away leverage to file a lien down the road.
Nevada also has some unique state laws governing lien waivers. Here鈥檚 what you need to know:
- After 鈥渢he first delivery of material or performance of work or services under a contract,鈥� subs and suppliers must fill out a and then mail or deliver it in person to both the property owner and the GC. If they don鈥檛, it could lead to disciplinary action.
- While the four outlined lien waiver forms tend to protect construction parties, there is a big question mark when it comes to payment issues. For example, if you鈥檙e paid for a construction project via check, but the check bounces, state statutes say that the lien waiver would become void. The Supreme Court of Nevada has related to this issue. The long and short of it: Don鈥檛 waive your lien rights in Nevada until after you鈥檝e been paid.
- Payment for Nevada construction jobs must be delivered to claimants in the form of a two-party joint check.
Nevada provides for progress payments and final payments.
Nevada accepts both conditional and unconditional lien waivers.
Nevada lien waivers should never be notarized, or you risk invalidating your lien rights.
Nevada lien waivers are considered valid when they:
- are in writing
- follow the outlined format with content specified in
- are signed by the claimant
contracts from waiving lien rights.
Exchanging unconditional waivers before payment are technically possible in Minnesota, but strongly discouraged as doing so waives lien rights if payment fails.
Completing Lien Waivers in Siteline
- Create, monitor, and track all your lien waivers in one place.
- Automatically fill out and send the right waiver at the right time.
- Request lower-tier lien waivers from all your sub-tier contractors, vendors, and suppliers鈥攊ndividually or in bulk.
- Securely collect e-signatures, with automatic reminders for any unsigned waivers.
- Package and submit signed waivers to your GCs directly within Siteline.
Yes, Nevada requires construction teams to exchange any of its four lien waiver forms as . State law instructs parties to match the language exactly. We recommend including all fields as is and not adding anything to these forms. Doing so could completely eliminate your lien rights.
Nevada lien waivers must follow the state鈥檚 guidelines to be valid and enforceable:
- For partial conditional, partial unconditional, final conditional, and final unconditional lien waivers, forms must follow the format and content of .
- Fields include, but are not limited to, property name, property location, payment amount, date, and invoice/payment application number.
- The lien waiver must be signed by the claimant.
Lien waivers in Nevada are regulated and need to be exchanged at specific project milestones to be valid.聽
Construction teams can exchange lien waivers by providing any of the following four forms per :
- A conditional waiver and release upon progress payment indicates that you will waive your lien rights for that specific portion of the project after the GC pays the noted amount. This should be exchanged when you submit a pay app for a progress payment.
- An unconditional waiver and release upon project payment should only be exchanged after you receive payment for the specified amount, thus allowing you to waive your right to file a lien on this portion of the project. (If you exchange this waiver before being paid for a Nevada construction job, you surrender your primary leverage for securing payment鈥攁nd violate state law.)
- A conditional waiver and release upon final payment states that you will waive your lien rights for the entire project, only if the GC pays in full. Submit this waiver with the final pay app to signify a project has ended.
- Lastly, an unconditional waiver and release upon final payment should be exchanged after full payment has been received from the GC, including retention and fees. This waives all of your lien rights on the project. (Again, never submit this form before being paid.)
For more information on which lien waiver subsets to use and when, check out this comprehensive guide.
Nevada lien waiver provisions can be added to the contract, unless they try to eliminate lien rights. that 鈥渁ny term of a contract that attempts to waive or impair the lien rights of a contractor, subcontractor or supplier is void.鈥�
Nevada outlines that construction teams can use to protect their lien rights. Two of these forms can be used for progress payments (conditional and unconditional progress), and two for the final payment (conditional and unconditional final). Since these forms were created by the state, this means they can be clearly interpreted by the court system in case of any dispute.
Additionally, the state protects subs with its final payment waiver and release forms specifically. If any payments haven鈥檛 come through yet, subs can fill out the 鈥淎mount of Disputed Claims鈥� section to file for any outstanding payments鈥攗ltimately noting you will not waive your lien rights for this portion of the project yet.
One caveat here: The Supreme Court of Nevada has about a lien waiver statute that deems a waiver void if a check provided for payment does not clear. This makes it even more important for subs to wait until they receive payment to waive their lien rights through an unconditional lien waiver.
If the dispute cannot be handled directly between parties, consider consulting with a construction law attorney who is familiar with Nevada lien laws.
Doing construction business in Nevada can quickly become confusing and complicated if you鈥檙e not following the state鈥檚 lien waiver laws. Remember, you can familiarize yourself with these select resources at any time:
- (contains lien waiver statutes and forms)
- (covers mechanic鈥檚 liens)
Automate the process with Siteline. Contractors use our lien waiver tool to digitize all of their lien waiver forms (primary and vendor), send waiver requests to lower-tier contractors and vendors, collect e-signatures, and submit completed waivers to their clients鈥攚ithout ever leaving the system. Siteline even provides centralized tracking to help contractors monitor vendor waiver statuses to see who鈥檚 received the form, who鈥檚 opened it, and who has (or hasn鈥檛) signed. This means contractors can collect waivers faster while eliminating payment delays caused by compliance holds.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. We recommend you consult a qualified attorney for advice specific to your situation.