If you’ve spent any time around a construction site, you know well how many documents and forms the industry relies on. There seems to be a document for almost everything that happens on a job site (and off-site, in some cases). Luckily, most of the documents are pretty standard nationwide. But, a few random states have rules and regulations that aren’t so run-of-the-mill. One example? Nevada’s notice of completion.
Nevada and a few other states provide property owners with a tool to protect themselves against mechanics lien. That tool is a “Notice of Completion,” and it can have a tremendous effect on the amount of time a contractor has to file a mechanics lien. For that reason, Nevada contractors need to understand this document and how they can protect themselves.
What is a notice of completion in Nevada?
While the term might not sound very intimidating (in fact, it sounds relatively positive), a notice of completion empowers the project owner and, occasionally, the GC. This document marks the end of the construction project, and the project owner should send it to everyone who has lien rights on the project.
When the project owner files a notice of completion, it cuts the amount of time a contractor has to file a mechanics lien in Nevada. And it’s not just a few days — it’s by more than half.
Typically, contractors in Nevada have up to 90 days from last furnishing or job completion (not under a notice of completion) to file a mechanics lien against a property for non-payment. As long as the contractor meets that deadline, they’ll be able to file a lien. In Nevada, a notice of completion shrinks that deadline to just 40 days from the date of its filing.
So, if you’re one of the last contractors on a project and the project owner files a notice of completion, your original 90-day safety net for filing a lien doesn’t exist anymore. It’s now 40 days from the date the project owner filed. So if you were waiting for payment, it’s essential to get on your horse and file a lien sooner rather than later.
Beyond shrinking the mechanics lien deadline, a notice of completion doesn’t affect anything else regarding mechanics liens. Certain documents still need sending, and the amount of time allotted for enforcing the lien doesn’t change.
Be sure to keep reading the following sections to understand all of the implications of a notice of completion.