Nevada Code § 624.610

Grounds and procedure for stopping work or terminating agreement; change orders; damages and other remedies; rights of lower-tiered subcontractors; limitations on liability
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1. If:
(a) An owner fails to pay the prime contractor in
the time and manner required by subsection 1 or 4 of NRS 624.609 ;
(b) An owner fails to give the prime contractor
written notice of any withholding in the time and manner required by subsection
3 or 4 of NRS 624.609 ;
(c) After receipt of a notice of withholding
given pursuant to subsection 3 or 4 of NRS
624.609 , the prime contractor gives the owner written notice pursuant to
subsection 4 of NRS 624.609 and thereby
disputes in good faith and for reasonable cause the amount withheld or the
condition or reason for the withholding; or
(d) Within 30 days after the date that a written
request for a change order is submitted by the prime contractor to the owner,
the owner fails to:
(1) Issue the change order; or
(2) If the request for a change order is
unreasonable or does not contain sufficient information to make a
determination, give written notice to the prime contractor of the reasons why
the change order is unreasonable or explain that additional information and
time are necessary to make a determination,
the prime
contractor may stop work after giving written notice to the owner at least 10
days before stopping work.
2. If a prime contractor stops work
pursuant to paragraph (a), (b) or (c) of subsection 1, the prime contractor may
terminate the agreement by giving written notice of termination to the owner
after stopping work but at least 15 days before terminating the agreement. If
the prime contractor is paid the amount due before the date for termination of
the agreement set forth in the written notice, the prime contractor shall not
terminate the agreement and shall resume work.
3. If an owner fails to issue a change
order or give written notice to the prime contractor pursuant to the provisions
of paragraph (d) of subsection 1:
(a) The agreement price must be increased by the
amount sought in the request for a change order;
(b) The time for performance must be extended by
the amount sought in the request for a change order;
(c) The prime contractor may submit to the owner
a bill or invoice for the labor, materials, equipment or services that are the
subject of the request for a change order; and
(d) The owner shall pay the prime contractor for
such labor, materials, equipment or services with the next payment made to the
prime contractor.
4. If the 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, the
prime contractor may terminate the agreement if:
(a) The prime contractor gives written notice of
his or her intent to terminate to the owner at least 10 days before terminating
the agreement; and
(b) The owner fails to allow work to resume
within the time set forth in the written notice given pursuant to paragraph
(a).
5. If a prime contractor stops work
pursuant to subsection 1, the owner may terminate the agreement by giving the
prime contractor written notice of his or her intent to terminate at least 15
days before terminating the agreement.
6. If the agreement is terminated pursuant
to subsection 4, or if the prime contractor stops work in accordance with this
section and the agreement is terminated pursuant to subsection 1 or 5, the
prime contractor is entitled to recover from the owner payment in an amount
found by a trier of fact to be due the prime contractor, including, without
limitation:
(a) The cost of all work, labor, materials,
equipment and services furnished by and through the prime contractor, including
any overhead the prime contractor and his or her lower-tiered subcontractors
and suppliers incurred and profit the prime contractor and his or her
lower-tiered subcontractors and suppliers earned through the date of
termination;
(b) The balance of the profit that the prime
contractor and his or her lower-tiered subcontractors and suppliers would have
received if the agreement had been performed in full;
(c) Interest determined pursuant to NRS 624.630 ; and
(d) The reasonable costs, including court and
arbitration costs, incurred by the prime contractor and his or her lower-tiered
subcontractors in collecting the amount due.
In any
action brought to enforce the rights or obligations set forth in this
subsection, the trier of fact may award reasonable attorneys fees to the prime
contractor and his or her lower-tiered subcontractors and suppliers or, if the
trier of fact determines that the prime contractor stopped work or terminated
the agreement without a reasonable basis in law or fact, the trier of fact may
award reasonable attorneys fees and costs, including court and arbitration
costs, to the owner.
7. If a prime contractor stops work
pursuant to subsection 1, each lower-tiered subcontractor with whom the prime
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 a prime
contractor terminates an agreement pursuant to this section, all such
lower-tiered subcontractors may terminate their agreements with the prime
contractor.
8. The right of a prime contractor to stop
work or terminate an agreement pursuant to this section is in addition to all
other rights that the prime contractor may have at law or in equity and does
not impair or affect the right of a prime contractor to maintain a civil action
or to submit any controversy arising under the agreement with the owner to
arbitration.
9. No prime contractor or his or her
lower-tiered subcontractors or suppliers, or their respective sureties, may be
held liable for any delays or damages that an owner may suffer as a result of
the prime contractor or lower-tiered subcontractors or suppliers stopping their
work or the provision of materials or equipment or terminating an agreement for
a reasonable basis in law or fact and in accordance with this section or
reasonable cause and in accordance with this section or NRS 624.626 .

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