Nevada § 338.515 - Time for making payments; amounts paid; amounts withheld as retainage; rate of interest paid on amounts withheld; powers of Labor Commissioner when worker is owed wages

§ 338.515. Time for making payments; amounts paid; amounts withheld as retainage; rate of interest paid on amounts withheld; powers of Labor Commissioner when worker is owed wages

1. Except as otherwise provided in NRS 338.525 , a public body and its officers or agents awarding a contract for a public work shall

pay or cause to be paid to a contractor the progress payments due under the contract

within 30 days after the date the public body receives the progress bill or within

a shorter period if the provisions of the contract so provide. Ninety-five percent of the amount of any progress payment must be paid and 5 percent

withheld as retainage until 50 percent of the work required by the contract has been

performed. 2. After 50 percent of the work required by the contract has been performed, the public

body may pay to the contractor: (a) Any of the remaining progress payments without withholding additional retainage;

and (b) Any amount of any retainage that was withheld from progress payments pursuant

to subsection 1, if, in the opinion of the public body, satisfactory progress is being made in the

work. 3. After determining in accordance with subsection 2 whether satisfactory progress

is being made in the work, the public body may pay to the contractor an amount of

any retainage that was withheld from progress payments pursuant to subsection 1 if: (a) A subcontractor has performed a portion of the work; (b) The contractor has determined that satisfactory progress is being made in the

work under the subcontract with the subcontractor pursuant to NRS 338.555 ; (c) The public body determines that the portion of the work has been completed in

compliance with all applicable plans and specifications; (d) The subcontractor submits to the contractor: (1) A release of the subcontractor's claim for a mechanic's lien for the portion of

the work; and (2) From each of the subcontractor's subcontractors and suppliers who performed work

or provided material for the portion of the work, a release of his or her claim for

a mechanic's lien for the portion of the work; and (e) The amount of the retainage which the public body pays is in proportion to the

portion of the work which the subcontractor has performed. 4. If, after determining in accordance with subsection 2 whether satisfactory progress

is being made in the work, the public body continues to withhold retainage from remaining

progress payments: (a) If the public body does not withhold any amount pursuant to NRS 338.525 : (1) The public body may not withhold more than 2.5 percent of the amount of any progress

payment; and (2) Before withholding any amount pursuant to subparagraph (1), the public body must

pay to the contractor 50 percent of the amount of any retainage that was withheld

from progress payments pursuant to subsection 1; or (b) If the public body withholds any amount pursuant to NRS 338.525 : (1) The public body may not withhold more than 5 percent of the amount of any progress

payment; and (2) The public body may continue to retain the amount of any retainage that was withheld

from progress payments pursuant to subsection 1. 5. Except as otherwise provided in NRS 338.525 , a public body shall identify in the contract and pay or cause to be paid to a contractor

the actual cost of the supplies, materials and equipment that: (a) Are identified in the contract; (b) Have been delivered and stored at a location, and in the time and manner, specified

in a contract by the contractor or a subcontractor or supplier for use in a public

work; and (c) Are in short supply or were specially made for the public work, within 30 days after the public body receives a progress bill from the contractor

for those supplies, materials or equipment. 6. A public body shall pay or cause to be paid to the contractor at the end of each

quarter interest for the quarter on any amount withheld by the public body pursuant

to NRS 338.400 to 338.645 , inclusive, at a rate equal to the rate quoted by at least three insured banks, credit

unions, savings and loan associations or savings banks in this State as the highest

rate paid on a certificate of deposit whose duration is approximately 90 days on the

first day of the quarter. If the amount due to a contractor pursuant to this subsection for any quarter is

less than $500, the public body may hold the interest until: (a) The end of a subsequent quarter after which the amount of interest due is $500

or more; (b) The end of the fourth consecutive quarter for which no interest has been paid

to the contractor; or (c) The amount withheld under the contract is due pursuant to NRS 338.520 , whichever occurs first. 7. If the Labor Commissioner has reason to believe that a worker is owed wages by

a contractor or subcontractor, the Labor Commissioner may require the public body

to withhold from any payment due the contractor under this section and pay the Labor

Commissioner instead, an amount equal to the amount the Labor Commissioner believes

the contractor owes to the worker. This amount must be paid by the Labor Commissioner to the worker if the matter is

resolved in the worker's favor; otherwise it must be returned to the public body for

payment to the contractor.