AB 100 — Revises provisions governing contractors. (BDR 28-194)

(Reprinted with amendments adopted on April 24, 2017) FIRST REPRINT A.B.

(BDR 54-194)28-194) FISCAL NOTE:

LegislativeLegExisting Counsel’slaw Digest:prohibits a provision in a contract for a public work, other than a contract entered into by the Nevada Department of Transportation, that requires a contractor to waive a right to damages or an extension of time acquired as a result of a delay caused by certain actions by the public body.

(NRS 338.480, 338.485) Existing law providesalso thatprohibits a provision in aan contractagreement, forexcept acontracts for public work,release, otheror thanextinguish a contractclaim enteredor intoright byfor thedamages Nevadaor Departmentan extension of Transportation,time athat provisionthe thatprime requirescontractor ofmay otherwise possess or acquire as a delayresult causedof bydelay, certainacceleration, actionsdisruption byor thean publicimpact bodyevent that is voidunreasonable andunder unenforceable.ultthe (NRScircumstances, 338.480,that 338.485)was Sectionnot 2within the contemplation of thisthe billparties removesat thisthe provisiontime ofthe existingagreement law.was entered into, or for which the prime contractor is not responsible.

Instead,(NRS section624.622) 1This ofbill thisadds billthose makesprohibited applicableprovisions to anthe agreementlist between a public body and a prime contractor for work and labor on a public work a provision of existingprovisions law that providesare thatprohibited in anentered agreementinto betweenby anthe ownerNevada andDepartment aof primeTransportation.ntracts orfor anpublic extensionworks ofTHE timePEOPLE acquiredOF asTHE aSTATE resultOF ofNEVADA, certainREPRESENTED disruptionsIN orSENATE otherAND eventsASSEMBLY, isDO voidENACT andAS unenforceable.FOLLOWS:

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

NRS(Deleted 624.622by isamendment.) herebySec. amended to read as follows:

624.622 1.

A prime contractor shall provide a copy of any notice given to an owner pursuant to subsection 1 or 2 of NRS 624.610 to each lower-tiered subcontractor with whom the prime contractor has entered into an agreement.

Upon receipt of payment pursuant to NRS 624.609, the prime contractor shall notify all such lower-tiered subcontractors in writing of receipt of payment.

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A condition, stipulation or provision in an agreement which:

(a) Requires a prime contractor to waive any rights provided in this section, NRS 624.609, 624.610, 624.620 or 624.630, or which limits those rights;

(b) Relieves an owner of any obligation or liability imposed pursuant to NRS 624.606 to 624.630, inclusive;

or (c) Requires a prime contractor to waive, release or extinguish a claim or right for damages or an extension of time that the prime contractor may otherwise possess or acquire as a result of delay, acceleration, disruption or an impact event that is unreasonable under the circumstances, that was not within the contemplation of the parties at the time the agreement was entered into, or for which the prime contractor is not responsible, ¬ is against public policy and is void and unenforceable.

3.

All notices required pursuant to NRS 624.609 to 624.622, inclusive, must be:

(a) Delivered personally, in which case the prime contractor shall obtain a notarized statement from the person who delivered the notice as proof of delivery;

(b) Sent by facsimile and delivered by regular mail, in which case the prime contractor shall retain proof of a successful transmission of the facsimile;

(c) Delivered by certified mail;

or (d) Delivered in the manner provided for in the agreement.

4.

Except as otherwise provided in paragraph (b), NRS 624.609 to 624.622, inclusive, do not apply to an agreement between:

(a) A prime contractor and a natural person who owns a single- family residence for the performance of qualified services with respect to the residence;

or (b) A public body and a prime contractor for the performance of work and labor on a public work [.] , except that this subsection and paragraph (c) of subsection 2 apply to such an agreement.

5.

Within 5 days after an owner receives a written request for the information set forth in paragraphs (a), (b) and (c) from a lower- tiered subcontractor, the owner shall notify the lower-tiered subcontractor in writing of the following:

(a) The date the owner made a specified payment to the prime contractor;

(b) Whether the owner has paid the entire amount of a specified payment to the prime contractor;

and (c) The amount withheld by the owner from a specified payment to the prime contractor and the condition or reason for the withholding.

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or (c) [RequiresRequires a contractor or subcontractor to waive, release or extinguish a claim or right for damages or an extension of time that the contractor or subcontractor may otherwise possess or acquire as a result of a delay , acceleration, disruption or an impact event that is:

(1) So[So] In the case of a disruption or delay, so unreasonable in length as to amount to an abandonment of the public work;

or[or] (4) Caused by a decision by the public body to significantly add to the scope or duration of the public work;

or[or] (d)](5) RequiresUnreasonable aunder contractor or public body to be responsible for any consequential damages suffered or incurred by the othercircumstances; party that arise from or relate to a contract for a public work, including, without limitation, rental expenses or other damages resulting from a loss of use or availability of the public work, lost income, lost profit, lost financing or opportunity, business or reputation, and loss of management or employee availability, productivity, opportunity ¬ is against public policy and is void and unenforceable.

(6) Not a delay, acceleration, disruption or an impact event which was within the contemplation of the parties at the time the agreement was entered into;

or (7) Not a delay, acceleration, disruption or an impact event for which the contractor or subcontractor, as applicable, is responsible;

or (d) Requires a contractor or public body to be responsible for any consequential damages suffered or incurred by the other party that arise from or relate to a contract for a public work, including, without limitation, rental expenses or other damages resulting from a loss of use or availability of the public work, lost income, lost profit, lost financing or opportunity, business or reputation, and loss of management or employee availability, productivity, opportunity or services, ¬ is against public policy and is void and unenforceable.

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