Nevada § 338.600 - Withholding amounts for failure of subcontractor or supplier to comply with subcontract or applicable building code, law or regulation; payment of amounts withheld upon correction of condition

§ 338.600. Withholding amounts for failure of subcontractor or supplier to comply with subcontract or applicable building code, law or regulation; payment of amounts withheld upon correction of condition

1. Except as otherwise provided in NRS 338.595 , a subcontractor may withhold from a progress payment or retainage payment an amount

sufficient to pay the expenses the subcontractor reasonably expects to incur as a

result of the failure of his or her subcontractor or supplier to comply with the subcontract

or applicable building code, law or regulation. 2. A subcontractor shall, within 10 days after the subcontractor receives: (a) A progress payment or retainage payment from a contractor for an amount that is

less than the amount set forth in the applicable progress bill or retainage bill;

or (b) A progress bill or retainage bill from his or her subcontractor or supplier, give a written notice to his or her subcontractor or supplier of any amount that will

be withheld pursuant to this section. 3. The written notice must: (a) Set forth: (1) The amount of the progress payment or retainage payment that will be withheld

from his or her subcontractor or supplier; and (2) A detailed explanation of the reason the subcontractor will withhold that amount,

including, without limitation, a specific reference to the provision or section of

the subcontract, or documents related thereto, or applicable building code, law or

regulation with which the subcontractor or supplier has failed to comply; and (b) Be signed by an authorized agent of the subcontractor. 4. The subcontractor shall pay to his or her subcontractor or supplier the amount

withheld by the public body, contractor or subcontractor within 10 days after: (a) The subcontractor receives a written notice of the correction of the condition

that is the reason for the withholding, signed by an authorized agent of his or her

subcontractor or supplier; or (b) The contractor pays to the subcontractor the amount withheld, whichever occurs later.