Legal Alert: Legislature Passes AB574 to Relieve the Burden of the Nevada First Act on Nevada General Contractors


AB144 caused quite a stir within the Nevada general contracting community; the potential liabilities for breach caused by a minor subcontractor several tiers downstream were significant disincentives for the use of Nevada’s preference law. Moreover, it became clear that with potentially unlimited liability for the acts of third parties, bonding companies were not willing to undertake the bonding risk associated with the new law. To address these issues, the Associated General Contractors’ Board of Directors, led by President Boyd Martin, was able to gain a last minute alteration of AB144 by the passage of AB574. Whether this is enough to handle the problems created by AB144 remains to be seen.

Read the full alert.