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Construction Bulletin Board

Be Aware Of What Is Required
By Law WITH YOUR CONTRACTOR LICENSE


  • All contractors must be aware of the laws that pertain to their licenses. Please make sure your license number and monetary limit are on all contracts or bids.

  • Your license number should also be displayed on all business advertisements, vehicles, business cards, letterheads, banners and websites. If your address or applicable information pertaining to your license changes, you must notify the Board in writing within 30 days. Also, you should be certain that contracts are within the scope of your license classification, and bid amounts are within your monetary limit.

Hiring Independent
Contractors...
...No Excuse For
Not Having Workers' Compensation Insurance
The Workers' Compensation Fraud Unit of the Nevada Department of Justice has been prosecuting employers who fail to provide Worker's Compensation coverage. A common misconception is that coverage is not needed because the employer uses "independent contractors," or a 1099 form for their employees. Harboring such beliefs may result in employers facing criminal charges and being held responsible for the medical benefits paid for the injured worker. Nevada law requires a person to provide Worker's Compensation coverage for employees, and also subcontractors, independent contractors and their employees. Contractors on construction projects need to be particularly careful. There are no exceptions when the work being performed requires a contractor's license. Prime contractors must ensure subcontractors have and maintain coverage because the prime contractor is always responsible for injuries to employees of independent subcontractors on construction projects. For more information, http://dirweb.state.nv.us/WCS/Handouts/myth.pdf Or Contact: Compliance Enforcement Unit, Department of Business and Industry
Be Aware Of What Is Required By Law For Your License...


Hiring Independent
Contractors...
...No Excuse For Not Having Workers' Compensation Insurance


Eight Things to Remember About Construction Liens"


Contractors Code of Ethics

Eight Things to Remember About Construction Liens"


  1. Make sure you are a licensed contractor for purposes of claiming a construction lien. Just because you have a CCB license or are registered with the Bureau of Labor & Industries does not mean you are a licensed contractor for the purpose of claiming a construction lien.

  2. Make sure you provide the correct preclaim notice. Failure to provide the required preclaim notice could at best cause your lien to lose its priority. At worst, failing to provide the required notice could negate a contractor's ability to recover attorney fees and costs as part of the lien, or could render the entire lien unenforceable.

  3. Do not miss the deadline for providing a required preclaim notice. Providing the appropriate preclaim notice is only half of the challenge. The second half is providing the required preclaim notices in a timely manner.

  4. The only way to prefect a lien is by correctly recording a claim of construction lien. Once work has ended or the contract has been terminated (rightfully or wrongfully), a contractor has a narrow window of opportunity within which to file a claim of lien.

  5. Know the deadline for filing a lien foreclosure lawsuit. Regardless of the time allowed, the deadline to file a construction lien foreclosure action is "jurisdictional," which means that if a foreclosure action is not timely started, the lien is invalid and unenforceable as a matter of law.

  6. Segregate the lien as much as possible - the more detail the better. The law requires a reasonable level of detail in the claim of construction lien. Rarely is a construction lien rendered invalid because it provides too much detail. But numerous liens are either invalidated in whole or in part because the court cannot break down the lien into its various components. Labor should be separated from materials and equipment. The more detail provided in the claim of construction lien the less likely it is that the lien will be attacked on this basis.

  7. Do not try to protect suppliers or other subcontractors through your lien. As tempting as it may be to include other subcontractors or suppliers in your lien, do not do it. Such an action is especially tempting when the supplier or subcontractor happens to be your main source of labor or materials. While loyalty to subcontractors and suppliers is admirable, and including them is often the norm in this industry, you risk negating all lien rights. Keep in mind that all suppliers and subcontractors have lien rights and are responsible for protecting their own individual lien rights. The rule of thumb here is that contractors are not typically allowed to protect lien rights belonging to others. The danger is that a court could render the lien invalid because it contains sums for labor and material not directly provided by the lien claimant.

  8. The right to potentially recover attorney fees is your most powerful tool. Nothing puts fear into an owner or prime contractor like the prospect of having to pay attorney fees on top of the lien amount. And nothing takes this bargaining chip away from you faster than failing to comply with the statutory requirements for filing a claim of construction lien. To ensure that lien rights are protected at all times, a contractor should approach each job with the assumption that a construction lien will be required before payment is received. Most mistakes are made while attempting to perfect a claim of lien at the very last second. Last-minute filing mistakes typically result in the loss of the right to recover attorney fees and costs. If this right is lost and the claimed amount is not large enough to justify the expense of a lawsuit on its own, the loss of the right to recover attorney fees will be the difference between getting paid and leaving all the money on the table. Contractors should view and respect the construction lien laws as they do trusted tools - never forget you have them and know how to use them properly. Construction lien rights are often the difference between receiving timely payment and not being paid at all. This article is intended to inform the reader of general legal principles applicable to the subject area. It is not intended to provide legal advice regarding specific problems or circumstances. Readers should consult with competent counsel with regard to specific situations This page printed from: http://www.jordanschrader.com/articles/article0248.html


Contractors Code of Ethics


We will always provide a detailed cost breakdown before beginning the work.
The primary concern of consumers entering into a construction project is the ability to account for and justify the total cost of the proposed work. Creating a detailed allocation of costs allows the owner to make informed decisions about specifying the work. The important factor is that a clear description of costs eliminates many misunderstandings and conflicts between contractor and project owner.

We will always provide a written schedule for the progress of the work.
It is not enough to generally assign a block of time to the entire project. Project owners want the opportunity to follow the roadmap of the progress being prepared for delivery of materials, waiting time for coatings to dry, scheduling of inspections, and all components of the use of time. The schedule document, whether a bar chart or a simple calendar page, allows the owners to remain informed about the progress of the work.

We will always secure a building permit if one is required.
Regardless of the size of the project, the building authority should be provided with an opportunity to review the Health, Safety, and Welfare issues that are addressed in the building codes. By taking this step, the contractor is assuring the homeowner that the work is being completed under the requirements of the various codes.

We will always sign a written contract that includes our cost breakdown, the schedule and the plans.
The importance of a written contract goes far beyond describing the work and the cost to be paid. Contracts define what action the parties will take when unforeseen events occur. The care taken to draft a complete and detailed agreement is an invaluable step towards the smooth completion of the project and a strong relationship between the contractor and owner.

We will always provide sufficient labor to accomplish the work according to the project schedule.
Perhaps the most frequent complaint of project owners against the contractors is the tendency to not provide workers to the job in a manner to adhere to the schedule. Contractors subscribing to this principal provide the owners with a level of comfort that work is going forward and the schedule is being adhered to. When circumstances such as weather and material deliveries cause delays, the contractor will notify the owner of the delay and the revised completion date. The key element is improved levels of communication regarding the management of the project schedule.

We will always leave the job in a clean and orderly condition.
The value of a clean job site is often underestimated by the work force. Not only is the safety of the project site increased by the elimination of debris and clutter, building inspectors tend to spend their time evaluating the work for its care rather than being critical of the lack of housekeeping.

We will provide you with a list of the subcontractors that we intend to hire.
A typical remodel will involve numerous subcontractors to perform the countless tasks and provide diverse materials and equipment to the job. By providing a list of all subcontractors and suppliers, the contractor is informing the owners of the characteristics of the team that will be accomplishing the work. This has serious consequences when dealing with the administration of mechanics lien rights and releases. But more importantly, subcontractors and their suppliers provide valuable insurance for equipment failures and consequential damage.

We will provide a detailed invoice that incorporates a current report of the project budget.
Contractors and owners alike are familiar with the trauma associated with the "final invoice." The surprises that occur when all of the accounting for changes and upgrades are totaled are generally associated with the last invoice. Contractors have a critical duty to their customers to keep them informed throughout the project regarding revisions to the total budget. Small and seemingly inconsequential upgrades can mount up to a substantial cost if not carefully and faithfully monitored. Experience has shown that even a diligent change order system fails to inform the owners of the total impact of the aggregate changes that have been made. With a budget report, line items created in the initial cost breakdown are accounted for on every invoice. Changes are also reflected on every invoice as soon as the owners elect them.

We will compile a booklet of all manufacturers' warranties for any new equipment we install.
Manufacturers of water heaters, furnaces, thermostats, fireplaces, and appliances provide detailed brochures with instruction, warranties, and maintenance tips. The contractor will endeavor to gather and bind all of the technical bulletins and brochures and assemble them into a booklet for retention by the owner.

We will conduct a walk-through inspection with you and correct any deficient work prior to final payment.
The contractor agrees that no final payment will be made until all unfinished work has been completed. The contractor will correct any deficient or damaged work according to the agreement between parties. Further, since mechanics' liens are time-sensitive, the contractor will postpone payment of 10% of the contract price for a period of 35 days following the owner's recording the required notice that a project has been completed.