What a stop payment notice release bond is
In a few states, an unpaid subcontractor or supplier can serve a stop payment notice (also called a stop notice) on the owner or construction lender, which then holds back money owed on the job. A release bond lets that money be paid out; the claimant then claims against the bond instead.
In Nevada
Nevada does not have a stop payment notice or stop notice mechanism in its construction law. Unpaid subcontractors and material suppliers protect their payment rights by filing mechanics liens under NRS Chapter 108, not by serving a stop notice. NRS §§ 108.2413–108.2425 provide a surety bond procedure to release a recorded mechanics lien (bond amount equals 1.5 times the lienable amount), but that is a lien release bond, not a stop payment notice release bond.
- Multiple authoritative sources confirm: 'Nevada has no remedy allowing a lien claimant to serve a Stop Payment Notice.'
- NRS §§ 624.610 and 624.626 (Nevada Prompt Payment Act) permit contractors and subcontractors to stop work after 10 days' written notice when payment is withheld, but no surety bond is involved in that mechanism.
- The primary payment protection tool for unpaid subcontractors and suppliers is a mechanics lien filed under NRS § 108.226 within 90 days of completion or last furnishing of labor or materials.
You need this bond if you're
- A general contractor whose payments are being held
- A property owner or public agency holding funds
- A construction lender holding loan funds
What the surety looks at
The claim, the dispute behind it and your finances.