Delayed Delivery, Lien Filed at Las Vegas Stadium

Timeframes are imperative on construction projects. Ground-breaking events, actual start dates of the construction project, etc. are all important, but delivery dates and completion of the project are in a league of their own during the building process. Delivery (first and last furnishing) and completion dates are of vital importance to those parties lower in the supply chain of the overall project—often sub-subcontractors and material suppliers.

Knowing the specific dates of delivery is one of the basic data points needed for becoming a secured creditor. Completion dates are also important for material suppliers and others to follow as they can reduce the amount of time a party has to file a lien against the property. If a notice of completion is filed, the time a claimant has to perfect a lien in Nevada is reduced to "within 40 days after the recording of a valid notice of completion," according to state law.

This may come in handy for those working on the nearly $2 billion Las Vegas Stadium, which is expected to be ready for the start of the 2020 NFL season. Concerns were raised last month after it was reported the substantial completion date was moved from July 31, 2020, to Aug. 4, 2020, according to the Review-Journal. However, Las Vegas Stadium Co. Chief Operating Officer Don Webb said in the article, the schedule still shows July 31.

The delivery of steel products has also been delayed at the construction site, yet work continues as contractors dedicate attention to other projects while they wait for the delivery. A steel subcontractor from Wisconsin has also filed a mechanic's lien against the project's general contractor, a joint venture between Mortenson Construction and McCarthy Building Companies (Mortenson-McCarthy).

"Without editorializing too much, our steel fabricator who filed that lien has been paid every dollar that they've ever billed, so that's very curious and unusual in my experience," Webb said. "Typically, a lien is filed after you've exhausted other remedies to collect that which you are owed." Mortenson-McCarthy issued a payment bond to avoid other delays.

Nevada, like other states, has different lien and bond laws depending on the type of project (private vs. public). Different requirements are also laid out within the statute, and bonds are not required if the contract is less than $100,000. While there are similarities, with both private and public jobs requiring notices, the timelines are different. A notice is required within 31 days of first furnishing for lien claimants. Meanwhile, public projects require a bond claim notice within 30 days of first furnishing. Subsequent guidelines spelled out in statute also differ as material suppliers and others waiting for payment look to become secured.

-Michael Miller, managing editor

Chris Ring of NACM's Secured Transaction Services will be in Las Vegas April 17 to discuss Nevada construction law on the final stop of his Construction Credit Education Roadshow. Learn more on NACM's STS website.

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Monday, 27 January 2020

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