# Nevada Public Works Bonds: NRS 339, NDOT Contracts and Payment Bond Claims

URL: https://mycontractorsinsurancequote.com/construction-surety-bonds/public-works-bond-requirements/nevada
Updated: 2026-10-29 · Reviewed by the Principal, Gleason Insurance Brokers, LLC
Publisher: My Contractors Insurance Quote, a website of Gleason Insurance Brokers, LLC

Under NRS 339.025, a contractor awarded a Nevada public works contract over $100,000 by the State, a county, city, town, school district or other public agency must furnish a performance bond and a payment bond, each in an amount the agency fixes but not less than 50 percent of the contract amount, from a surety authorized to do business in Nevada. A claimant that dealt only with a subcontractor must serve the prime contractor a written notice within 30 days after its first labor or material and a second notice within 90 days after its last, both by registered or certified mail, and every claimant must sue within one year after its last labor or material. NDOT highway contracts are carved out of chapter 339 and follow NRS chapter 408 instead, with full-amount bonds and a claim filed with the department within 30 days after final acceptance.

## Key Decision Points
- NRS 339.025 bonds attach to contracts exceeding $100,000, and an agency may still require bonds on smaller work.
- The statutory floor is 50 percent of the contract amount for each bond; the bid documents set the actual amount.
- A sub-supplier's 30-day first notice is a condition of its bond claim, and the statute has no look-back for a late one.
- NDOT contracts under NRS 408.357 need full-amount bonds, and the performance bond stays in force one year after completion.
- An NDOT bond claimant files with the department within 30 days after final acceptance and sues within six months of that acceptance.

## Which Nevada Contracts Trigger the Statutory Bonds

Chapter 339 reaches almost every public owner in the state. NRS 339.015 defines a contracting body as the State, a county, city, town or school district and any public agency of the State or its political subdivisions with authority to contract for building, altering or repairing a public building, public work or public improvement. NRS 339.025 then applies to any such contract exceeding $100,000 for new construction, repair or reconstruction. The bonds become binding when the contract is awarded.

Two carve-outs and one open door shape the bid decision. Contracts governed by NRS chapter 408, the Department of Transportation's highway statute, are excluded and carry their own bond rules. A railroad company awarded an NDOT contract on its own property may be relieved of bonds under NRS 408.354. And subsection 5 of NRS 339.025 says the section does not stop a contracting body from requiring bonds, so a $70,000 parks or utility job can still come with bond requirements in the specifications.

For a contractor, the threshold is where the analysis starts, not where it ends. The invitation to bid, the special provisions and the agency's own procurement rules decide whether bonds are required below $100,000 and how large they must be above it.

To compare Nevada with federal, California, Texas, Arizona and Nevada requirements, see [public works bond rules by state](https://mycontractorsinsurancequote.com/construction-surety-bonds/public-works-bond-requirements).

## Bond Amounts, Sureties and Filing Under NRS 339.025

Nevada sets a floor rather than a fixed amount. The performance bond is in an amount the contracting body fixes but not less than 50 percent of the contract amount, conditioned on faithful performance under the plans, specifications and conditions of the contract, and it protects only the contracting body. The payment bond has the same 50 percent floor and protects only claimants supplying labor or materials to the prime contractor or any of its subcontractors. Because the agency fixes the amount, a city that writes 100 percent bonds into its standard specifications is within the statute, so read the bid form before asking the surety for capacity.

Each bond must be executed by one or more surety companies authorized to do business in Nevada. Bonds on State work run to the State of Nevada, bonds for any other contracting body run to that body, and every bond is filed in the office of the body that awarded the contract. NRS 339.065 makes it a misdemeanor for an agency representative issuing an invitation for bids to require that a bond come from a particular surety company or through a particular agent or broker.

The State Public Works Division adds a second layer. When it awards a general contract, each subcontractor whose work exceeds $50,000 or 1 percent of the proposed project, whichever is greater, must furnish a bond to the Division in an amount the Division fixes. A prime bidding Division work should confirm before bid day that its key subcontractors can bond, because a sub that cannot is a scheduling and pricing problem after award.

For what a performance bond obligates the surety and the contractor to do after a default, see [how performance bonds respond on public contracts](https://mycontractorsinsurancequote.com/construction-surety-bonds/performance-bonds).

### Illustrative scenario: A Rebar Supplier on a Nevada School District Site Package

Basin Ridge Builders, a fictional general contractor, is awarded a $3.8 million site and utility package by a Nevada school district, so NRS 339.025 applies, and the district's specifications fix both bonds at 100 percent rather than the 50 percent floor. Its fictional concrete subcontractor buys reinforcing steel from Silver Sage Supply, a fictional supplier with no contract with Basin Ridge. Silver Sage first delivers on March 2 but does not mail its 30-day notice to Basin Ridge until April 10, by certified mail. Its last delivery is August 14, with $118,000 unpaid, and it mails its 90-day notice on October 1. Because the 30-day notice was late, Silver Sage's counsel warns that its right to sue on the payment bond is in doubt and calendars suit for no later than August 14 of the following year, in the court where the school sits. Basin Ridge's surety asks for the subcontract, the joint check history and the lien releases before responding. Had the same steel gone to an NDOT interchange contract instead, Silver Sage would have filed a verified claim with the department within 30 days after final acceptance and sued within six months of it.

## Making a Payment Bond Claim Under NRS 339.035 and 339.055

Any claimant that performed labor or furnished material on a bonded contract and has not been paid in full 90 days after its last labor or material may sue on the payment bond in its own name. A claimant with a direct contract with a subcontractor, but no contract, express or implied, with the prime, has two extra steps. It must serve the prime a written notice within 30 days after first furnishing material or performing labor, describing the materials or labor and identifying who hired it and the site. It must then give written notice within 90 days after its last labor or material.

Each notice must state with substantial accuracy the amount claimed and the person for whom the work was performed or the material supplied, and the statute requires service by registered or certified mail, postage prepaid, addressed to the contractor at any place it keeps an office or does business or at its residence. Unlike lien statutes that preserve later deliveries after a late preliminary notice, NRS 339.035 conditions the right of action on the 30-day notice itself, so a second-tier supplier that misses it should have counsel review the claim before relying on the bond.

NRS 339.055 sets venue in the appropriate court of the political subdivision where the contract was to be performed and bars any action filed more than one year after the claimant's last labor or material. A supplier that does not know who wrote the bond can apply to the contracting body with an affidavit for a certified copy of the bond and contract under NRS 339.045. The copy is prima facie evidence of the original, and the applicant pays a fee that covers the actual cost of preparing it.

For how payment bond claims work on public jobs in other states, see [payment bond claim rules](https://mycontractorsinsurancequote.com/construction-surety-bonds/payment-bonds).

## NDOT Highway Contracts Under NRS Chapter 408

Highway work for the Department of Transportation runs on a separate track. NRS 408.337 requires every bid to be accompanied by an undertaking from a corporate surety authorized in Nevada, cash or a certified check of at least 5 percent of the amount bid. If the low bidder does not execute the contract and deliver the required bonds so they are postmarked or delivered to the department within 20 days after award, the bid security is forfeited to the State Highway Fund, and the department may move to the second or third lowest responsible bidder.

NRS 408.357 then requires bonds equal to the full amount of the contract, written by corporate sureties approved by the department and authorized in Nevada. The performance bond guarantees faithful performance and must be maintained for one year after the date of completion. The labor and material bond secures state and local taxes, Nevada Industrial Insurance Act premiums, unemployment contributions and claims for labor, materials, equipment, transportation and supplies, with interest at 8 percent a year up to the bond sum. No bidder may act as surety, the department may demand additional bonds or sureties if it believes the existing ones have become insufficient and it may require proof of public liability and property damage insurance.

Claims follow NRS 408.363. An unpaid claimant files a verified claim in triplicate with the department within 30 days from final acceptance, stating it has not been paid, and copies go to the contractor and surety. Suit against the surety must follow within six months after the department's final acceptance. Contractors also clear a prequalification step first: under NRS 408.333, bidders file a verified questionnaire and financial statement before receiving plans, and the Director must refuse plans to a bidder found within the preceding year to have materially breached a public work contract costing more than $25 million.

For the licensing, one-call and insurance rules civil contractors meet on Nevada jobs, see [Nevada civil and highway contractor insurance and bonding](https://mycontractorsinsurancequote.com/nevada/audiences/civil-infrastructure-contractors).

## Retainage, Bid Protests and Alternative Delivery

Local public works retainage sits in NRS 338.515. The public body pays progress bills within 30 days, paying 95 percent and withholding 5 percent until half the work is done. After that point it may stop withholding and release retainage if progress is satisfactory, and if it keeps withholding without a separate NRS 338.525 basis, it must first pay half of the retainage held and then may hold no more than 2.5 percent of later payments. NDOT contracts differ: NRS 408.383 caps the retained 5 percent at $50,000, lets the Director reduce retention only with written approval from every surety and lets the contractor substitute qualifying government obligations for retained funds.

Bid protests can require their own bond. Under NRS 338.142, a bidder may protest an award within 5 business days after the recommendation to award, and the public body may require a bond from a solvent surety authorized in Nevada, or other security, equal to the lesser of 25 percent of the protester's bid or $250,000. The protest stays the award until the public body decides it, and a rejected protest can lead to a claim against that bond.

Alternative delivery keeps chapter 339 in view. NRS 338.1721 requires a design-build team to be able to obtain performance and payment bonds under NRS 339.025 and to carry general liability and errors and omissions insurance, and NRS 338.1569 requires a job order contractor to be licensed under chapter 624 and to show it can obtain the necessary bonding. A contractor moving into these delivery methods should show the surety how the contract price, not just the first task order, will be bonded.

For how public works contractors plan their bonding and insurance around these rules, see [insurance and surety programs for public works contractors](https://mycontractorsinsurancequote.com/who-we-serve/general-contractors/public-works-contractors).

## What a Surety Looks at on a Nevada Public Bid

The surety's first questions follow the statutes. Which body is awarding the contract, is it a chapter 339 or a chapter 408 job and what bond amount do the specifications fix above the 50 percent floor? On NDOT work, the full-amount bonds and the one-year performance bond tail after completion add to the time the obligation stays on the contractor's program, which matters for a contractor carrying several highway jobs at once.

The submission should match that analysis. Send the bid notice and bond forms, the current work-in-progress schedule with retainage held by job, the subcontractor list with any State Public Works Division subcontractor bonds and the warranty terms in the specifications. Bonds are credit, not insurance: the contractor and its indemnitors repay the surety for any loss it pays, so the contractor's own controls on sub-supplier notices and lien releases are part of what the surety underwrites.

For how warranty periods keep a surety obligation open after the job, see [warranty obligations after acceptance](https://mycontractorsinsurancequote.com/construction-surety-bonds/maintenance-warranty-bonds).

## Before You Ask for a Quote

### What to Gather
- The invitation to bid, bond forms and the bond amounts the specifications fix
- Whether the contract falls under NRS chapter 339 or NDOT's chapter 408
- Subcontractor list, with any State Public Works Division subcontractor bond requirements
- Supplier first-delivery dates and the 30-day notices received, with mailing receipts
- Current work-in-progress schedule and retainage held by job
- Warranty or guarantee terms in the specifications and any NDOT completion date

### What to Ask the Insurer or Surety
- Is the surety authorized to do business in Nevada and, for NDOT work, approved by the department?
- Will the surety write bonds at 100 percent when the agency fixes them above the statutory floor?
- How does the surety treat the one-year performance bond tail on NDOT contracts?
- What does the surety want on file when a sub-supplier's 30-day notice arrives?
- Will the surety consent in writing to a retention reduction on an NDOT job?
- Does the surety want bonds from key subcontractors even when the owner does not require them?

## Broker Notes

**Quick Answer:** Nevada contracting bodies must require performance and payment bonds of at least 50 percent of the contract amount on public works contracts over $100,000 under NRS 339.025, and claimants sue within one year of their last labor or material. NDOT highway contracts instead need full-amount bonds under NRS 408.357, with claims filed within 30 days of final acceptance.

**Common Mistake:** A second-tier supplier waiting to send its first notice until a payment is late. NRS 339.035 requires that notice within 30 days after the first delivery or labor, by registered or certified mail, and a late one can put the payment bond claim at risk.

**Broker Perspective:** A broker confirms whether the job sits under chapter 339 or chapter 408, what bond amount the agency fixed, how long the performance bond stays open after completion and which subcontractors must bond, then lines up surety capacity before bid day.

**Coverage Impact:** Public works bonds are surety credit, not insurance: the contractor and its indemnitors owe the surety for any claim it pays. NDOT may also require proof of public liability and property damage insurance, and whether a policy responds to a given loss depends on its wording.

## Questions Buyers Ask

### Does a Nevada public contract under $100,000 need performance and payment bonds?

Not under the NRS 339.025 trigger, which applies to contracts exceeding $100,000. The same section says it does not prohibit a contracting body from requiring bonds, so a city, county or district can still write them into a smaller job's specifications. Read the bid documents, and remember that NDOT contracts follow chapter 408 instead, where bonds are tied to the contract rather than a dollar trigger.

### Can a Nevada city set our payment bond at only half the contract price?

Yes. NRS 339.025 lets the contracting body fix each bond at any amount not less than 50 percent of the contract amount, so a 50 percent payment bond meets the statute. A bid package may fix a higher amount, and the specifications control for that contract. Ask the surety to quote the amount the agency requires, since bonding capacity is measured against it.

### We supply a subcontractor on a Nevada county job. When must our first bond notice go out?

Within 30 days after you first furnish material or perform labor, served on the prime contractor by registered or certified mail under NRS 339.035. It should describe what you are furnishing, name the subcontractor that hired you and identify the site. A second notice stating the amount owed is due within 90 days after your last delivery, and suit must follow within one year of that delivery.

### How long does an NDOT performance bond stay in force after the road opens?

NRS 408.357 requires the performance bond to be maintained for one year after the date the contract is completed. Sureties typically keep that exposure on the contractor's program until the year runs. Unpaid labor and material claimants, by contrast, must file with the department within 30 days after final acceptance and sue within six months of that acceptance under NRS 408.363.

### Can a Nevada agency require a bond to protest a contract award?

Yes. NRS 338.142 lets the public body require a protesting bidder to post a bond from a solvent surety authorized in Nevada, or other approved security, equal to the lesser of 25 percent of the protester's bid or $250,000. The protest must be filed within 5 business days after the recommendation to award, and a rejected protest can lead to a claim against the bond.

## Official Sources

1. [NRS 339.015, 339.025 and 339.065 (contracting body; performance and payment bonds; no required surety or agent)](https://www.leg.state.nv.us/NRS/NRS-339.html#NRS339Sec025), Nevada Legislature. Contracting body definition; bonds on contracts exceeding $100,000 except chapter 408 contracts; binding on award; 50 percent minimums; State Public Works Division subcontractor bonds over $50,000 or 1 percent; Nevada-authorized sureties; payee and filing; agencies may still require bonds; misdemeanor to require a particular surety, agent or broker. Verified 2026-10-25.
2. [NRS 339.035, 339.045 and 339.055 (payment bond claims, certified copies, venue and limitation)](https://www.leg.state.nv.us/NRS/NRS-339.html#NRS339Sec035), Nevada Legislature. Right to sue after 90 days unpaid; 30-day and 90-day notices for claimants contracting with a subcontractor, served by registered or certified mail; certified copies on affidavit as prima facie evidence; venue where the contract is performed; one-year limitation. Verified 2026-10-25.
3. [NRS 408.333, 408.337, 408.354, 408.357, 408.363 and 408.383 (NDOT bidding, bonds, claims and retention)](https://www.leg.state.nv.us/NRS/NRS-408.html#NRS408Sec357), Nevada Legislature. Prequalification questionnaire and $25 million breach rule; 5 percent bid security forfeited after 20 days; railroad exception; full-amount bonds, one-year performance bond maintenance, labor and material bond scope with 8 percent interest, insurance proof; claims within 30 days of final acceptance and suit within six months; 5 percent retention capped at $50,000, surety approval for reductions and substitution of obligations. Verified 2026-10-25.
4. [NRS 338.515 (progress payments and retainage on public works)](https://www.leg.state.nv.us/NRS/NRS-338.html#NRS338Sec515), Nevada Legislature. Payment within 30 days; 5 percent retainage until 50 percent completion; release and 2.5 percent cap rules after 50 percent. Verified 2026-10-25.
5. [NRS 338.142, 338.1569 and 338.1721 (protest bonds; job order and design-build qualifications)](https://www.leg.state.nv.us/NRS/NRS-338.html#NRS338Sec142), Nevada Legislature. Protest within 5 business days and protest bond equal to the lesser of 25 percent of the bid or $250,000; job order contractor licensing and bonding ability; design-build team ability to obtain NRS 339.025 bonds and general liability and errors and omissions insurance. Verified 2026-10-25.

## Related Decisions

- [NDOT prequalification and contract bonds](https://mycontractorsinsurancequote.com/construction-surety-bonds/public-agency-contractor-requirements/ndot)
- [public works bond requirements across the states](https://mycontractorsinsurancequote.com/construction-surety-bonds/public-works-bond-requirements)
- [Nevada construction insurance and surety rules](https://mycontractorsinsurancequote.com/nevada)
- [Nevada general contractor insurance and bonding](https://mycontractorsinsurancequote.com/nevada/audiences/general-contractors)
- [bid bonds and bid security](https://mycontractorsinsurancequote.com/construction-surety-bonds/bid-bonds)
- [Arizona title 34 public works bonds](https://mycontractorsinsurancequote.com/construction-surety-bonds/public-works-bond-requirements/arizona)

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