Fill and Sign the However Any Such Change or Modification Shall Only Be Made by Written Quotchange Form

- 1 - COMMERCIAL CONSTRUCTION CONTRACT THIS COMMERCIAL CONSTRUCTION CONTRACT (“Contract”), effective as of the date of the last party to sign below, is between , having an address at ("Contractor") and , having an address at ("Owner"). For valuable consideration the parties hereby agree as follows:1. SCOPE OF WORK: Contractor shall provide all labor and materials, and perform all work necessary for the completion of the residence, structure, or improvements as described in the drawings and specifications signed by both Owner and Contractor (“Project”) and more particularly described as Such drawings and specifications are hereby made a part of this Contract. Drawings and specifications shall contain a scale drawing showing the shape, size, and dimensions of the construction and equipment together with a description of the work to be done, materials to be used, and the equipment to be used or installed. 2.WORK SITE: The Project shall be constructed on the property of Owner located at and more particularly described as (hereafter "the Work Site"). Owner hereby authorizes Contractor to commence and complete the usual and customary excavation and grading on the Work Site as may be required in the judgment of the Contractor to complete the Project. Unless called for in the drawings or specifications, no landscaping, finish grading, filling or excavation is to be performed at the Work Site by the Contractor. 3. TIME OF COMPLETION: Contractor shall commence the work to be performed under this Contract on or before and shall substantially complete the work on or before . Contractor shall not be liable for any delay due to circumstances beyond its control including strikes, casualty, acts of God, illness, injury, or general unavailability of materials. 4. PERMITS: Contractor shall apply for and obtain such permits and regulatory approvals as may be required by the local municipal/county government, the cost thereof shall be included as part of the Project price.5. SOIL CONDITIONS: Contractor shall have no responsibility for the condition of the soils at the Work Site. Any excavation, filling or other work required by the Owner other than the usual and customary excavation and grading shall be agreed to in a Change Order for an amount in addition to the Contract Price. Contractor shall not be responsible for any damages suffered by Owner as a result of the soil conditions at the Work Site.6.SURVEY AND TITLE: If the Project is near the Owner’s property boundary, Owner will point out property lines to the Contractor. If the Owner or Contractor has any doubt about the location of the property lines, Owner shall provide Contractor with boundary stakes through a licensed surveyor. In addition, Owner shall provide Contractor documentation that Owner has title to the Work Site and shall provide Contractor copies of any covenants, conditions, or restrictions that affect the Work Site. - 2 - 7.CHANGES TO SCOPE OF WORK: Owner may make changes to the scope of the work, including changes to the drawings and specifications, from time to time during the construction of the Project. However, any such change or modification shall only be made by written "Change Order" signed by both parties. Such Change Orders shall become part of this Contract. Owner agrees to pay any increase in the cost of the Project as a result of a Change Order. Contractor may stop work after giving written notice to Owner at least ten (10) days before stopping work if within 30 days after the date that a written request for a change order is submitted by Contractor to Owner, Owner fails to issue the change order, or if the request for a change order is unreasonable or does not contain sufficient information to make a determination, fails to give written notice to Contractor of the reasons why the change order is unreasonable or explains that additional information and time are necessary to make a determination. If Owner fails to issue a change order or give written notice to Contractor, the agreement price must be increased by the amount sought in the request for a change order; the time for performance must be extended by the amount sought in the request for a change order; Contractor may submit to Owner a bill or invoice for the labor, materials, equipment or services that are the subject of the request for a change order; and Owner shall pay Contractor for such labor, materials, equipment or services with the next payment made to Contractor.8.CONTRACT PRICE:{COST PLUS}Owner agrees to pay Contractor the actual cost to Contractor of materials plus the sum of$ for performing the services set forth in the scope of the work. Contractor shall be paid as follows: .OR{FIXED FEE}Owner agrees to pay Contractor the sum of $ for performing the services set forth in the scope of the work. Contractor shall be paid as follows: .Contractor shall furnish Owner appropriate releases or waivers of lien for all work performed or materials provided at the time the next periodic payment shall be due.9.PROGRESS PAYMENTS:A.Owner shall make progress payments on account of the contract price to Contractor, on the basis of applications for payment submitted to ________________________ (e.g., architect/engineer) by Contractor within 21 days after the date Contractor submits a request for payment, and on the ________________________ (e.g., architect/engineer)’s certificate for the same, in accordance with ________________________ (describe the contract document that - 3 - establishes the basis for a progress payment). B.Progress payments may be withheld if: 1.Work is found defective and not remedied;2. Contractor does not make prompt and proper payments to subcontractors; 3. Contractor does not make prompt and proper payments for labor, materials, or equipment furnished to Contractor; 4. A subcontractor is damaged by an act for which Contractor is responsible;5. Claims or liens are filed with regard to the project; or 6. In the opinion of ________________________ (e.g., architect/engineer), Contractor's work is not progressing satisfactorily.10.FINAL PAYMENT:A.Owner shall make final payment to Contractor within (number) days after the work is completed, if the contract is at that time fully performed; however, final payment shall not be made or deemed due until Contractor has delivered to Owner a complete release of all liens arising out of the contract, or receipts in full covering all labor, materials, and equipment for which a lien could be filed, or in the alternative a bond satisfactory to Owner indemnifying him or her against any and all such liens. B. Owner, by making payment, waives all claims except those arising out of the following 1. Faulty work appearing after substantial completion has been granted;2. Work that does not comply with the contract documents;3. Outstanding claims of lien; or 4. Failure of Contractor to comply with any special guarantees required by the contract documents.C. Contractor, by accepting final payment, waives all claims except those that Contractor has previously made in writing, and which remain unsettled at the time of acceptance.11.LATE PAYMENT/DEFAULT: A failure to make payment for a period in excess of 21 days after the date Contractor submits a request for payment shall be deemed a material breach of this Contract. If payment is not made when due, Contractor may stop work after giving written notice to Owner at least ten (10) days before stopping work, until such time as all payments due have been made without breach of the Contract pending payment or resolution of any dispute. Owner agrees to pay a late charge of 1% of all payments that are more than ten (10) days late plus interest at the rate of 1% per month. - 4 - 12.CONTRACTS DOCUMENTS:A. The contract documents on which the agreement between Owner, ________________________ (e.g., architect/engineer), and Contractor is based, that contain the plans and specifications in accordance with which the work is to be done, and that provide for the method of payment of the contract price are as follows:1. This agreement, with supplementary agreements and conditions attached to this agreement;2. The plans and specifications, with addenda attached to such plans and specifications, issued before execution of this agreement, and any amendments made after the effective date of this agreement;3. Written interpretations of the contract documents and directives to be made from time to time by the ________________________ (e.g., architect/engineer); and 4.Work change orders issued, or to be issued. B. The contract documents together form the contract for the work described in this agreement. The parties intend that the documents include provisions for all labor, materials, equipment, supplies, and other items necessary for the execution and completion of the work, and all terms and conditions of payment. The documents also include all work and procedures not expressly indicated in such documents necessary for proper execution of the above-described project.C. The contract documents are to be separately executed in triplicate by Owner and Contractor. Contractor, by executing the documents, represents that Contractor has inspected and is familiar with the work site and the local conditions under which the work is to be performed. If by inadvertence any of the contract documents are not signed, ________________________ (e.g., architect/engineer) shall identify them.13. DESIGNATION OF ________________________ (eg. Architect/Engineer):The ________________________ (e.g., architect/engineer) for above-described project is ________________________ (name), having an office at ________________________ (street address, city, county, state, zip code).14.DUTIES AND AUTHORITY OF ________________________ (eg. Architect/Engineer):The duties and authority of the ________________________ (e.g., architect/engineer) are as follows:A. General Administration of Contract. The primary function of the ________________________ (e.g., architect/engineer) is to provide the general administration of the contract. In performing these duties the - 5 - ________________________ (e.g., architect/engineer) is Owner's representative during the entire period of construction.B. Inspections, Opinions, and Progress Reports. He/she shall keep familiar with the progress and quality of the work by making periodic visits to the work site. He/she will make general determinations as to whether the work is proceeding in accordance with the contract. He/she will keep the Owner informed of such progress, and will use his/her best efforts to protect the Owner from defects and deficiencies in the work. He/she will not be responsible for the means of construction, or for the sequences, methods, and procedures used in such construction, or for Contractor's failure to perform the work in accordance with the contract documents.C. Access to Work Site for Inspections. He/she shall be given free access to the work at all times during its preparation and progress. However, he/she is not required to make exhaustive or continuous on-site inspections to perform his/her duties of checking and reporting on work progress.D. Interpretation of Contract Documents -- Decisions on Disputes.He/she will be the initial interpreter of the contract document requirements, and make primary decisions on claims and disputes between Contractor and Owner. All of his/her decisions are subject to arbitration as provided in this agreement.E. Rejection and Stoppage of Work.He/she shall have authority to reject work that in his /her opinion does not conform to the contract documents, and in this connection to stop the work or a portion of such work, when necessary.F. Payment Certificates.He/she will determine the amounts owing to Contractor as the work progresses, based on Contractor's applications and his/her inspections and observations, and will issue certificates for progress payments and final payment in accordance with the terms of the contract documents.15.RESPONSIBILITIES OF OWNER:A.Owner shall:· give all instructions to Contractor through ________________________ (e.g., architect/engineer);·shall furnish all necessary surveys for the work, and ·shall secure and pay for easements for permanent structures or permanent changes in existing structures or facilities on the work site, or which are necessary for its proper completion.B. Owner reserves the right to let other contracts in connection with the project. Contractor shall cooperate with all other contractors to the effect that their work shall not be impeded by his/her construction, and shall give such other contractors access to the work site necessary to perform their contracts.16.RESPONSIBILITIES OF CONTRACTOR:Contractor's duties and rights in connection with the above-described project are as follows:A. Responsibility for and Supervision of Construction. - 6 - Contractor shall be solely responsible for all construction under this contract, including the techniques, sequences, procedures, and means, and for coordination of all work. Contractor shall supervise and direct the work to the best of his/her ability, and give it all attention necessary for such proper supervision and direction.B. Discipline and Employment. Contractor shall maintain at all times strict discipline among his/her employees, and Contractor agrees not to employ for work on the project any person unfit or without sufficient skill to perform the job for which he or she was employed.C. Furnishing of Labor, Materials, etc. Contractor shall provide and pay for all labor, materials, and equipment, including tools, construction equipment, and machinery, utilities, including water, transportation, and all other facilities and services necessary for the proper completion of work on the project in accordance with the contract documents.D. Payment of Taxes and Procurement of Licenses and Permits. Contractor shall pay all taxes required by law in connection with work on the project in accordance with this agreement including sales, use, and similar taxes, and shall secure all licenses and permits necessary for proper completion of the work, paying the fees for such licenses and permits.E. Compliance with Construction Laws and Regulations. Contractor shall comply with all laws and ordinances, and the rules, regulations, or orders of all public authorities relating to the performance of the work under and pursuant to this agreement. If any of the contract documents are at variance with any such laws, ordinances, rules, regulations, or orders, he or she shall notify ________________________ (e.g., architect/engineer) promptly on discovery of such variance.F.Responsibility for Negligence of Employees and Subcontractors. Contractor assumes full responsibility for acts, negligence, or omissions of all his/her employees on the project, for those of his/her subcontractors and their employees, and for those of all other persons doing work under a contract with him or her.G. Warranty of Fitness of Equipment and Materials. Contractor represents and warrants to Owner and to ________________________ (e.g., architect/engineer) that all equipment and materials used in the work, and made a part of the structures on such work, or placed permanently in connection with such work, will be new unless otherwise specified in the contract documents, of good quality, free of defects, and in conformity with the contract documents. It is agreed between the parties to this agreement that all equipment and materials not so in conformity will be considered defective.H. Furnishing of Samples and Shop Drawings. Contractor agrees to furnish at ________________________ (e.g., architect/engineer)’s direction all samples and shop drawings for his or her consideration and approval as to conformance with the specifications of the contract documents and his or her concepts of design called for in such specifications.I. Clean-up. Contractor agrees to keep the work premises and adjoining ways free of waste material and - 7 - rubbish caused by his/her work or that of his/her subcontractors. Contractor further agrees to remove all such waste material and rubbish on termination of the project, together with all his/her tools, equipment, machinery, and surplus materials. Contractor agrees, on terminating his/her work at the site, to conduct general clean-up operations, including the cleaning of all glass surfaces, paved streets and walks, steps, and interior floors and walls.17. RIGHT TO CURE: Contractor shall have the right to cure a defect before Owner may file any action in court against Contractor.18. DESTRUCTION AND DAMAGE : If the Project is destroyed or damaged for any reason, except where such destruction or damage was caused by the sole negligence of the Contractor or its subcontractors, Owner shall pay Contractor for any additional work done by Contractor in rebuilding or restoring the Project to its condition prior to such destruction or damage. If the estimated cost of replacing work already accomplished by Contractor exceeds 20 percent of the Contract price, either the Contractor or Owner may terminate this Contract. Upon termination by either party, Contractor shall be excused from further performance under this Contract and Owner shall pay Contractor a percentage of the Contract price in proportion to the amount of work accomplished prior to the destruction or damage.19. ASSIGNMENT: Neither party may assign this Contract, or payments due under the Contract, without the other party’s written consent. Any such assignment shall be void and of no effect.20.INTERPRETATION:A.Interpretation of Documents. The Contract, drawings, and specifications are intended to supplement one another. In the event of a conflict, the specifications shall control the drawings, and the Contract shall control both. If work is displayed on the drawings but not called for in the specifications, or if the work is called for in the specifications but not displayed on the drawings, Contractor shall be required to perform the work as though it were called for and displayed in both documents.B. Entire Agreement. This Contract constitutes the entire agreement of the parties. No other agreements, oral or written, pertaining to the work to be performed under this Contract exists between the parties. This Contract may only be modified by a written agreement signed by both parties.C. Governing Law. This Contract shall be interpreted and governed in accordance with the laws of the State of Nevada.21. ATTORNEYS’ FEES AND COSTS: If any party to this Contract brings a cause of action against the other party arising from or relating to this Contract, the prevailing party in such proceeding shall be entitled to recover reasonable attorney fees and court costs.22.PERFORMANCE:A.Contractor may, at its discretion, engage licensed subcontractors to perform work pursuant to this Contract provided Contractor shall remain fully responsible for the proper completion of the Project. B.All work shall be completed in a workman-like manner and in compliance with all - 8 - building codes and applicable laws. To the extent required by law, all work shall be performed by individuals duly licensed and authorized by law to perform said work.C.Contractor agrees to remove all debris and leave the premises in broom clean condition.23.TIME OF ESSENCE; EXTENSION OF TIMEA. All times stated in this agreement or in the contract documents are of the essence.B. The times stated in this agreement or in the contract documents may be extended by a change order from ________________________ (e.g., architect/engineer) for such reasonable time as he/she may determine, when in his/her opinion Contractor is delayed in work progress by changes ordered, labor disputes, fire, prolonged transportation delays, injuries, or other causes beyond Contractor's control or which justify the delay.24. SUBCONTRACTORSA. Contractor agrees to furnish ________________________ (e.g., architect/engineer), prior to the execution of this agreement, with a list of names of subcontractors to whom he/she proposes to award the principal portions of the work to be subcontracted by him /her.B. A subcontractor, for the purposes of this agreement, shall be a person with whom Contractor has a direct contract for work at the project site.C. Contractor agrees not to employ a subcontractor to whose employment ________________________ (e.g., architect/engineer) or Owner reasonably objects, nor shall Contractor be required to hire a subcontractor to whose employment he/she reasonably objects.D. All contracts between Contractor and subcontractors shall conform to the provisions of the contract documents, and shall incorporate in them the relevant provisions of this agreement.E. If Contractor lawfully stops work pursuant to section 7 or 11 of this agreement, each lower-tiered subcontractor with whom Contractor has entered into an agreement and who has not fully performed under that agreement may also stop work on the work of improvement. If Contractor terminates an agreement, all such lower-tiered subcontractors may terminate their agreements with Contractor.25. MANDATORY ARBITRATIONAny dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect. - 9 - Any Claim arising out of or related to the Contract, except Claims of an aesthetic nature and except those waived, shall, after decision by the Architect or 30 days after submission of the Claim to the Architect, be subject to arbitration. Prior to arbitration, the parties shall try to resolve disputes by mediation. Claims not resolved by mediation shall be decided by arbitration which, unless the parties mutually agree otherwise, shall be in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association currently in effect. The demand for arbitration shall be filed in writing with the other party to the Contract and with the American Arbitration Association, and a copy shall be filed with the Architect. A demand for arbitration shall be made within the following time limits: __________________________ as applicable, and in other cases within a reasonable time after the Claim has arisen, and in no event shall it be made after the date when institution of legal or equitable proceedings based on such Claim would be barred by the applicable statute of limitationsLimitation on Consolidation or Joinder . No arbitration arising out of or relating to the Contract shall include, by consolidation or joinder or in any other manner, the Architect, the Architect's employees or consultants, except by written consent containing specific reference to the Agreement and signed by the Architect, Owner, Contractor, and any other person or entity sought to be joined. No arbitration shall include, by consolidation or joinder or in any other manner, parties other than the Owner, Contractor, a separate contractor, and other persons substantially involved in a common question of fact or law whose presence is required if complete relief is to be accorded in arbitration. No person or entity other than the Owner, Contractor or a separate contractor shall be included as an original third party or additional third party to an arbitration if their interest or responsibility is insubstantial. Consent to arbitration involving an additional person or entity shall not constitute consent to arbitration of a Claim not described therein or with a person or entity not named or described therein. The foregoing agreement to arbitrate and other agreements to arbitrate with an additional person or entity duly consented to by parties to the Agreement shall be specifically enforceable under applicable law in any court having jurisdiction thereof. Claims and Timely Assertion of Claims. The party filing a notice of demand for arbitration must assert in the demand all Claims then known to that party on which arbitration is permitted to be demanded. Judgment on Final Award. The award rendered by the arbitrator or arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.26. INSURANCEA. Contractor's Liability Insurance. Contractor agrees to keep in force at his/her own expense during the entire period of construction on the project such liability insurance as will protect him/her from claims, under workers' compensation and other employee benefit laws, for bodily injury and death, and for property damage, that may arise out of work under this agreement, whether directly or indirectly by Contractor, or directly or indirectly by a subcontractor. The minimum liability limits of such - 10 - insurance shall not be less than the limits specified in the contract documents or by law for that type of damage claim. Such insurance shall include contractual liability insurance applicable to Contractor's obligations under this agreement. Proof of such insurance shall be filed by Contractor with Owner within a reasonable time after execution of this agreement.B. Owner's Liability Insurance. Owner agrees to maintain in force his/her own liability insurance during the construction on this project, and reserves the right to purchase such additional insurance as in his /her opinion is necessary to protect him/her against claims arising out of the Contractor's operation, without diminishing Contractor's obligation to carry the insurance specified in this agreement on Contractor's part to be carried.C. Property Damage Insurance on Work Site. Owner agrees to maintain at his/her expense during construction of the project property damage insurance on the work at the site to its full insurable value, including interests of Owner, Contractor, and subcontractors, against fire, vandalism, and other perils ordinarily included in extended coverage. Losses under such insurance will be adjusted with and made payable to Owner as trustee for the parties insured as their interests appear. Owner shall file a copy of all such policies with Contractor within a reasonable time after construction begins under and pursuant to this agreement.D. Waiver of Work Site Property Damage Claims to Extent of Insurance Coverage. Owner and Contractor waive all claims against each other for fire damage or damages from other perils covered by insurance provided in Subparagraph C. of this Section. Contractor agrees to obtain waivers of such claims by all subcontractors.27. CORRECTING WORKWhen it appears to Contractor during the course of construction that any work does not conform to the provisions of the contract documents, Contractor shall make necessary corrections so that such work will so conform, and in addition will correct any defects caused by faulty materials, equipment, or quality of performance in work supervised by him or her or by a subcontractor, appearing within ________________________ (period of time) from the date of issuance of a certificate of substantial completion, or within such longer period as may be prescribed by law or as may be provided for by applicable special guaranties in the contract documents.28.WORK CHANGESA. Owner reserves the right to order work changes in the nature of additions, deletions, or modifications, without invalidating this agreement, and agrees to make corresponding adjustments in the contract price and time for completion.B. All changes will be authorized by a written change order signed by Owner or by ________________________ (e.g., architect/engineer) as Owner's agent. The change order will include conforming changes in the agreement contract and completion time.C. Work shall be changed, and the contract price and completion time shall be modified only as set out in the written change order.D. Any adjustment in the contract price resulting in a credit or a charge to Owner shall be - 11 - determined by mutual agreement of the parties, or by arbitration, before starting the work involved in the change.29.TERMINATIONA. Contractor's Termination. If Contractor stops work after payment is not made when due and if within 30 days after the date that a written request for a change order is submitted by Contractor to Owner, and Owner fails to issue the change order, or if the request for a change order is unreasonable or does not contain sufficient information to make a determination, fails to give written notice to Contractor of the reasons why the change order is unreasonable or explains that additional information and time are necessary to make a determination, and after giving written notice to Owner at least ten (10) days before stopping work, C ontractor may terminate the agreement by giving written notice of termination to Owner after stopping work but at least 15 days before terminating the agreement. If Contractor is paid the amount due before the date for termination of the agreement set forth in the written notice, Contractor shall not terminate the agreement and shall resume work.Upon termination, Contractor may recover from Owner payment for all work completed and for any loss sustained by Contractor for materials, equipment, tools, or machinery to the extent of actual loss plus loss of a reasonable profit, provided he or she can prove such loss and damages.If Owner through his or her own act or neglect, or through an act or neglect of his or her agent, excluding acts of God, floods, fires, labor disputes, strikes or reasonable adjustments to work schedules, causes the work to be stopped for a period of 15 days or more, Contractor may terminate the agreement if Contractor gives written notice of his or her intent to terminate to Owner at least ten (10) days before terminating the agreement, and Owner fails to allow work to resume within the time set forth in the written notice. B. Owner's Termination. Owner may, on (number) days notice to Contractor, terminate this agreement before the completion date specified in this agreement, and without prejudice to any other remedy he or she may have, when Contractor defaults in performance of any provision in this agreement, or fails to carry out the construction in accordance with the provisions of the contract documents. On such termination, Owner may take possession of the work site and all materials, equipment, tools and machinery on the work site, and finish the work in whatever way he or she deems expedient. If the unpaid balance on the contract price at the time of such termination exceeds the expense of finishing the work, Owner will pay such excess to Contractor. If the expense of finishing the work exceeds the unpaid balance at the time of termination, Contractor agrees to pay the difference to Owner. If Contractor lawfully stops work under sections 7, 11, and 29A of this agreement, Owner may terminate the agreement by giving Contractor written notice of his or her intent to terminate at least 15 days before terminating the agreement.C. On any such default by Contractor, Owner may elect not to terminate this agreement, and in such event he or she may make good the deficiency of which the default consists, and deduct the costs from the progress payment then or to become due to Contractor.30.NO WAIVER - 12 - The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. 31.WARRANTY: Contractor's warranty shall be limited to defects in workmanship within the scope of work performed by Contractor and which arise and become known within one (1) year from the date hereof. All said defects arising after one (1) year and defects in material are not warranted by Contractor. Contractor hereby assigns to Owner all warranties on materials as provided by the manufacturer of such materials.32. REQUIRED NOTICES: Disclosures to Owner as required by Nevada are attached hereto.AGREED:CONTRACTOR:Signature Print Name & Title Date License Number Name and Address of License HolderOWNER:Signature Print Name Date - 13 - NOTICES TO OWNER Pursuant to NRS 108.221 to 108.246, inclusive, a contractor, subcontractor, laborer, supplier of materials or other person or entity who:(1) Performs work or furnishes materials of the value of $500.00 or more to improve the value of your property; and(2) Is not paid for the work or materials, has a right to place a lien on your property on which the work was performed and to sue you in court to obtain payment. This means that after a court hearing, your property could be sold by an officer of the court, and the proceeds of the sale used to satisfy the amount you owe. If you did not ask for and receive releases of liens from the contractors’ subcontractors, laborers or suppliers of materials, a lien may be placed on your property or you may be sued even if you have paid your contractor in full. To preserve their right to file a claim or lien against your property, certain claimants, such as subcontractors, laborers and suppliers of materials, are each required to provide you with a document called a “preliminary or pre-lien notice.” A preliminary or pre-lien notice is not a lien against your property. Its purpose is to notify you regarding persons or entities who may have a right to file a lien or claim against your property if they are not paid. To perfect their lien rights, contractors, subcontractors, laborers and suppliers of materials must file mechanics’ liens with the county recorder, which then become recorded liens against your property. Generally, the maximum time allowed for filing a mechanics’ lien against your property is 90 days after substantial completion of your project.TO ENSURE EXTRA PROTECTION FOR YOURSELF AND YOUR PROPERTY, YOU MAY WISH TO TAKE ONE OR MORE OF THE FOLLOWING STEPS: (1) Request that your contractor supply you with a payment and performance bond, which guarantees completion of your project and payment of the subcontractors, laborers and suppliers of materials who work on the project. This payment and performance bond is different from the surety bond that a contractor must file for licensure pursuant to NRS 624.270. A payment and performance bond provides that if the contractor does not complete the project, the bonding company will pay damages up to the amount of the bond. This payment and performance bond, as well as a copy of the construction contract, should be filed with the county recorder for your further protection. There is a fee for a payment and performance bond. This fee is usually equal to between 1 and 6 percent of the amount of the contract, depending on the ability of the contractor to be bonded. (2) Require that payments be made directly to subcontractors, laborers and suppliers of materials through a mechanism that controls payment for construction. In the area in which you live, services to control the funding of your project may be available, for a fee, to control payment of your contractor by the use of vouchers or other means. These services may also - 14 - provide you with waivers of liens and other forms of protection. (3) Issue joint checks for payment, made payable to both your contractor and the subcontractors, laborers and suppliers of materials who were involved in the project or portion of the project for which payment is due and who sent a preliminary or pre-lien notice to you. Those persons or entities have indicated that they may have the right to place a lien on your property, and therefore you need to protect yourself. Making checks jointly payable will help to ensure that all persons due payment are actually paid.(4) Require your contractor to provide you with unconditional “waiver and release” (lien release) forms so that when you make a payment on any completed phase of your project, each subcontractor, laborer and supplier of materials involved in that portion of the work for which the payment was made can sign the waiver and release forms. This protects you from liability to them for work for which they have already been paid.  Some stationery stores sell waiver and release forms if your contractor does not have them. The subcontractors, laborers and suppliers of materials from whom you obtain releases should be those persons or entities who have filed preliminary or pre-lien notices with you. If you are not certain which subcontractors, laborers and suppliers of materials are working on your project, you may obtain a list from your contractor. In regard to projects involving improvements to a single-family residence or a duplex owned by an individual, the persons signing these releases lose their right to file a mechanics’ lien against your property. In regard to other types of projects, obtaining such releases may still be important, but may not provide complete protection.  To protect yourself by use of a waiver and release form, you must be certain that all subcontractors, laborers and suppliers of materials who work on your project sign a waiver and release form. If a mechanics’ lien has already been filed against your property, in most cases the lien can only be released voluntarily by a recorded “release of mechanics’ lien,” which is signed by the person or entity that filed the mechanics’ lien against your property. However, if the person or entity that filed the lien fails to bring an action to enforce the lien in a timely manner, the lien may be removed without voluntary action on the part of that person or entity. You should not make final payment on your project until all mechanics’ liens that are filed against your property have been removed.TO PROTECT YOURSELF FULLY, YOU SHOULD CONSULT AN ATTORNEY: (1) BEFORE YOU SIGN A CONSTRUCTION CONTRACT; OR (2) IF A LIEN IS FILED AGAINST YOUR PROPERTY. - 15 - Contractors are required by law to be licensed and regulated by the State Contractors’ Board. The State Contractors’ Board has jurisdiction to investigate complaints that are filed against contractors. Any questions concerning a contractor may be referred to the State Contractors’ Board at: (1) 9670 Gateway Drive Suite 100 Reno, Nevada 89521 (775) 688-1141; or (2) 2310 Corporate Circle Suite 200 Henderson, Nevada 89074 (702) 486-1100. The law of this state requires that a person or entity who enters into a contract to perform construction work be properly licensed by the State Contractors’ Board for the category of work that the person or entity intends to perform. Laws regulating licensed contractors are designed to protect the public. If you contract with a person or entity who is not licensed to perform construction work, your remedies against that person or entity may be limited to a suit in civil court. You may be liable for damages arising out of any injuries to an unlicensed contractor, or that contractor’s employees, as well as withholding taxes contributions pursuant to the Federal Insurance Contributions Act and contributions for industrial insurance and unemployment compensation. In addition, you must comply with other applicable state and federal laws regarding employment. Finally, you should be aware that construction performed on your property must comply with all applicable laws, ordinances, building codes and regulations. A contractor is required to include his or her license number on all of his or her advertising, vehicles, bids and contracts. You may contact the State Contractors’ Board to find out if a contractor has a valid license and, if so, the status of that license. The board has complete information on the status of all licensed contractors in the State of Nevada. This information is available through the “voice response system” of the State Contractors Board. However, if you wish to obtain specific information about complaints that have been filed against a contractor, such information must be requested from the board in writing.