Who issues a remodeling license in Nevada
The Nevada State Contractors Board issues every contractor license used for remodeling work in Nevada. Licensing is a state function, not a city one. NRS 624 is the enabling statute. The Board decides the qualifications of applicants before licensing, using written examinations, background investigations and financial responsibility assessments. It also sets conditions on each license, including field and scope limitations, bond requirements and contractual limits. It disciplines licensees, and action can run to penalties, suspension or revocation. The Board keeps two offices. The northern office is at 5390 Kietzke Lane, Suite 102, Reno, NV 89511, phone (775) 688-1141. The southern office is at 8400 West Sunset Road, Suite 150, Las Vegas, NV 89113, phone (702) 486-1100. Office hours are Monday through Friday, 7:00 AM to 4:00 PM. The Board is funded from fees collected from licensees and takes no money from the State General Fund. Nevada has no separate home improvement contractor registration. A remodeler does not register as a home improvement contractor and then stop there. The same contractors license that covers new construction covers remodeling, sorted by classification and subclassification. For a remodeling company the subclassification decides what work it can legally sign. NRS 624.020 defines a contractor as any person who undertakes, offers to undertake or purports to have the capacity to construct, alter, repair, add to, subtract from, improve, move, wreck or demolish a building or other structure. The Board states that this reaches subcontractors and specialty contractors but not material suppliers, and that a construction manager who performs management and counseling services on a construction project for a professional fee is also a contractor. All contractors must be licensed before bidding, offering to engage or negotiating a price.
Sourcesnvcontractorsboard.com 1nvcontractorsboard.com 2leg.state.nv.us 3
Classifications that cover remodeling work
NRS 624.215 splits the contracting business into three branches: general engineering contracting, general building contracting and specialty contracting. General engineering and general building are mutually exclusive. A general building contractor is one whose principal business is the construction or remodeling of buildings for the support, shelter and enclosure of persons, animals or property, requiring more than two unrelated building trades, where the contractor is prime contractor and the construction or remodeling is the primary purpose. Inside Classification B the Board publishes seven subclassifications: B-1 Premanufactured Housing, B-2 Residential and Small Commercial, B-3 Speculative Building, B-4 Service Stations, B-5 Prefabricated Steel Structures, B-6 Commercial Remodeling and B-7 Residential Remodeling. Two matter most to remodelers. B-7 covers the remodeling and improvement of an existing, detached, stand-alone single-family residence, or a single-family residential unit inside a structure that does not extend more than three stories above the ground and one story below it. B-7 does not authorize increasing the existing enclosed space of the residential structure. B-2 covers the construction and remodeling of houses and other structures within the same three-story and one-basement-story envelope, so it reaches additions that B-7 does not. Classification AB is granted to applicants qualified in both general building and general engineering, and is limited to those who can show experience and financial responsibility supporting an unlimited license in both. Classification C holds 42 specialty subclassifications. Unless the general building contractor holds the matching specialty license, NRS 624.215 bars it from performing specialty work in plumbing, electrical, refrigeration and air-conditioning, or fire protection. NRS 624.284 adds that a contractors license does not authorize work constructing or repairing a mobile home, manufactured home, manufactured building, commercial coach or factory-built housing.
Sourcesleg.state.nv.us 1leg.state.nv.us 2nvcontractorsboard.com 3
Who needs a license and who is exempt
NRS 624.700 makes it unlawful to engage in the business of, or act in the capacity of, a contractor in Nevada, or to submit a bid on a job in Nevada, without an active license, unless the person is exempt under NRS 624.031. The exemptions matter to anyone pricing small residential work. An owner of property who builds or improves a residential structure for his or her own occupancy, and not for sale or lease, is exempt. Selling or leasing, or offering to sell or lease, the newly built structure within one year after completion creates a rebuttable presumption that the work was done with intent to sell or lease. An owner who wants this exemption has to apply to the Board for it. The handyman threshold is narrow. NRS 624.031 exempts work to repair or maintain property worth less than $1,000, labor and materials included, but the exemption fails if a building permit is required, if the work is of a type performed by a plumbing, electrical, refrigeration, heating or air-conditioning contractor, if the work falls in a Board-prescribed classification that significantly affects public health, safety and welfare, if the work is part of a larger project worth $500 or more, if contracts of less than $500 were awarded to evade the chapter, or if the work is performed by a licensee or a licensee's employee. Other exemptions cover government work, qualifying 501(c)(3) entities under certain repair agreements, court officers, public utilities doing incidental work, personal property repair, federal enclave work and agricultural owner-builders. A licensed real estate broker or property manager may help a client schedule repairs when no permit is required and the value stays at or below $10,000 per residential property.
Sourcesleg.state.nv.us
Experience and the qualified individual
Nevada licenses the business, not the person. The license belongs to the business and not to the qualifying party. Licenses may be issued to individuals, partnerships, corporations, limited liability companies or joint ventures, and each applicant has to put forward a trade qualified individual who can oversee the day-to-day business and the actual work. NRS 624.260 sets the experience bar. Each applicant for licensure must have had, within the 15 years immediately preceding the filing of the application, at least four years of experience as a journeyman, foreman, supervising employee or contractor in the specific classification applied for. Training in a program offered at an accredited college or university, or an equivalent program accepted by the Board, may satisfy not more than three of those years. The Board confirms there is no separate education requirement. Under NRS 624.260 the qualifier may be an owner, officer, member, manager or employee, must be a bona fide member or employee of the firm, and has to exercise real authority: making technical and administrative decisions, directing and disciplining employees, and devoting himself or herself solely to the employer's business. A natural person may not qualify on behalf of more than one active license unless one person owns at least 25 percent of each licensee, one licensee owns at least 25 percent of the other, or one licensee is a corporation for public benefit. The Board accepts four Certification of Work Experience forms for each trade qualifier, a current masters certification issued by a governmental agency in a substantially similar discipline, or proof of transferable military experience and training. Each qualifier also completes a Resume of Experience. Self employment used as experience requires a customer list with mailing addresses and phone numbers.
Sourcesleg.state.nv.us 1nvcontractorsboard.com 2
The examinations and licensure by endorsement
The qualifying individual must pass the Business and Law (CMS) examination and the trade examination specific to the classification requested, unless he or she meets the requirements for waiver. The Board has contracted with PSI Licensure to deliver the testing. An examination cannot be scheduled until the application is submitted and the Board issues an Examination Eligibility form with a Candidate ID number. PSI operates three Nevada test centers: 5740 S Eastern, Suite 200, Las Vegas; the Airport Plaza Office Building at 1755 E Plumb Lane, Suite 108, Reno; and 225 Silver Street, Suite 102, Elko. PSI also allows Nevada specific examinations at PSI owned sites in other states. A candidate gets three attempts at each examination and must wait two weeks before retaking it. If an examination is failed three times, the application becomes void under NAC 624.600(3), and the applicant may reapply with a new application and the applicable fee 30 days after the last examination date. NRS 624.280 caps the examination fee at $300. Licensure by endorsement is Nevada's reciprocity route, and it is partial. The Board waives the state specific trade examination and the experience certification process for applicants licensed in states Nevada has determined to have substantially equivalent requirements. The applicant must hold an active license in the endorsing state, with the same qualified individual, for the past four years, must not have been investigated for misconduct or disciplined in any jurisdiction, and must have no pending disciplinary proceedings. The qualified individual still has to pass the Nevada Business and Law examination. Passing the NASCLA Commercial General Building Contractor Examination also waives the state specific trade examination for a general building classification.
Sourcesnvcontractorsboard.com 1nvcontractorsboard.com 2leg.state.nv.us 3
Financial statement and the monetary limit
Every Nevada contractors license carries a monetary limit. NRS 624.220 requires the Board to set that limit as the maximum contract a licensed contractor may undertake on one or more construction contracts on a single construction site or subdivision site for a single client. For a remodeler the limit, not the classification alone, decides the size of job you can sign. A financial statement is required regardless of the size of the monetary limit requested, and it has to be prepared for the limit being asked for. Statements must be for the applying entity, in U.S. dollars, and business statements must include a classified balance sheet. Sole proprietorships and each general partner of a general partnership submit personal statements. Personal statements prepared by a CPA must include a supplemental schedule disclosing working capital and net worth. The tiers run as follows. For limits of $25,000 or less: a current statement from an independent certified public accountant, a current statement on a Board form, or a balance sheet prepared with accounting software under generally accepted accounting principles plus an accuracy affidavit. Self-prepared or compiled statements must be current within six months of receipt. For more than $25,000 but less than $500,000: a compiled statement from an independent CPA current within six months, or a reviewed or audited statement current within one year. For $500,000 or more but less than $1,000,000: a compiled statement with full disclosures, or a reviewed or audited statement. For $1,000,000 or more: a statement prepared and reviewed or audited by an independent CPA current within one year, plus a completed Bank Verification Form. NRS 624.264 adds that a residential construction applicant whose qualifier has not held a Nevada license in the preceding two years must establish financial responsibility through a CPA or Board-form statement.
Sourcesnvcontractorsboard.com 1leg.state.nv.us 2
Bond and cash deposit
Before the Board issues a contractors license it requires either a surety bond in a form acceptable to the Board, executed by the contractor as principal with a corporation authorized to transact surety business in Nevada, or a cash deposit established with the Board in place of that bond. NRS 624.270 fixes the amount. The Board sets each bond or deposit with reference to the contractor's financial and professional responsibility and the magnitude of operations, but the amount must be not less than $1,000 and not more than $500,000. The Board states that it determines the bond amount at the time of license approval, and that the amount varies with the type of license, the monetary limit, past, present or future financial responsibility, and the experience and character of the applicant. The applicant is notified of the required amount before the license is issued. A surety bond must come from a surety whose long-term debt obligations are rated A or better by a nationally recognized rating agency. Bonds must be continuous in form, and total aggregate surety liability for all claims is limited to the face amount of the bond regardless of how many years it stays in force. A surety may cancel by giving 60 days notice to the Board, and the license must carry a continuous bond with no lapse. Cash bonds must be a cashier's check payable to the State Contractors Board for the full amount. A biennial administrative fee of $200 applies to all cash bond deposits. After the license terminates or the bond requirement is relieved, the Board holds the cash deposit two more years, tracking the claim filing period. Failure to file or maintain the bond is cause to deny, revoke, suspend or refuse to renew a license.
Sourcesleg.state.nv.us 1nvcontractorsboard.com 2
What the license costs
NRS 624.280 caps what the Board may charge. An application fee must not exceed $550, a license fee must not exceed $900 biennially, and an examination fee must not exceed $300. The Board sets the actual amounts by regulation in NAC 624.130. Under that schedule the Board charges $600 to issue or renew a license, and $300 to consider an application for the issuance of a license in a classification in which the applicant is not licensed. Late filing of an application to renew an active license costs $150. An inactive license costs $300 to issue or renew. If the applicant or licensee has established a cash deposit with the Board instead of a surety bond, an administrative fee of $200 applies. Changes to an existing license carry their own charges. A request for a permanent increase or decrease of the monetary limit is $250. An application for an increase of the monetary limit for a single project is $75. A request to change the qualified person or another principal listed on a license is $250, as is a request to broaden a license to include the entire classification or other subclassifications within it, and an application to change the licensee's name. A duplicate license is $25 and a returned check is $25. Separate from the Board, NRS 76.100 requires a state business license from the Secretary of State before conducting business in Nevada. The application fee is $200, except that corporations organized under chapter 78, 78A or 78B of NRS, and foreign corporations filing under chapter 80, pay $500. NRS 76.130 sets the annual renewal fee at $200.
Sourcesleg.state.nv.us 1leg.state.nv.us 2leg.state.nv.us 3
Renewal, inactive status and continuing education
NRS 624.283 sets the renewal cycle. Each license expires two years after the date it is issued, except that the Board may prescribe shorter or longer periods and prorated fees by regulation to run a system of staggered biennial renewals. Any license not renewed on or before the date for renewal is automatically suspended. Renewal means submitting four things to the Board: an application for renewal, the renewal fee fixed by the Board, any assessment required under NRS 624.470 if the holder is a residential contractor as defined in NRS 624.450, and all information needed to complete the renewal. A remodeler working on single-family homes is a residential contractor, so the Recovery Fund assessment rides along with every renewal. The statutory renewal list contains no continuing education requirement. The Board may, however, require a licensee to demonstrate financial responsibility at any time, through a financial statement prepared by an independent certified public accountant or submitted on a Board-prescribed form with an accuracy affidavit, plus any additional documentation the Board considers appropriate if the licensee performs residential construction. If a license is automatically suspended for late renewal, the licensee may have it reinstated by filing a renewal application within six months after the date of suspension and paying a reinstatement fee on top of the renewal fee, if otherwise in good standing. NAC 624.130 puts the late filing fee for an active license at $150. NRS 624.282 allows a license to be placed on inactive status, and NAC 624.130 charges $300 to issue or renew an inactive license. Renewal is handled through the Board's online portal, which asks for the license number with preceding zeros and the Nevada Business ID issued by the Secretary of State.
Sourcesleg.state.nv.us 1leg.state.nv.us 2nvcontractorsboard.com 3
Industrial insurance and workers compensation
Nevada ties the contractors license to industrial insurance. NRS 624.256 requires that, before granting an original license or a renewal, the Board obtain one of four things from the applicant: proof of industrial insurance and insurance for occupational diseases covering the applicant's employees; a copy of the applicant's certificate of qualification as a self-insured employer issued by the Commissioner of Insurance; a copy of the certificate issued by the Commissioner of Insurance to an association of self-insured public or private employers of which the applicant is a member; or a signed affidavit. The affidavit route is narrow and is the one a solo remodeler usually relies on. It affirms that the applicant is not subject to chapters 616A to 616D or chapter 617 of NRS because the applicant has no employees, is not and does not intend to be a subcontractor for a principal contractor, and has not and does not intend to submit a bid on a job for a principal contractor or subcontractor. A remodeler who takes subcontract work from a general building contractor cannot sign that affidavit. Enforcement is shared. The Board must notify the Fraud Control Unit for Industrial Insurance established under NRS 228.420 whenever it learns that an applicant or licensee has engaged in business as a contractor in Nevada without obtaining or maintaining industrial insurance or occupational disease insurance. Failure by an applicant or licensee on this point also exposes the license to disciplinary action, and the same statute carries a penalty for failure to pay contributions to the Unemployment Compensation Fund. NRS 624 sets no statewide minimum amount of general liability coverage for a contractor, so coverage limits are driven by the bond, the contract and local requirements rather than by a figure in the chapter.
Sourcesleg.state.nv.us
The Residential Recovery Fund
Nevada funds a consumer recovery account that applies directly to remodeling. NRS 624.470 requires a residential contractor to pay the Board a biennial assessment on top of the license fee. The assessment must not exceed $200 per biennium if the monetary limit on the license is not more than $1,000,000, $500 per biennium if the limit is more than $1,000,000 but still limited, and $1,000 per biennium if the license is unlimited. The Board accounts for that money separately and may call it the Recovery Fund. The Board must reduce the assessments when the balance reaches 150 percent of the largest balance during the previous fiscal year. NRS 624.510 caps what a homeowner can collect. The Board may pay actual damages suffered, but not more than $40,000, or, where a judgment was obtained, the unpaid actual damages included in the judgment, again not more than $40,000. Recovery on all claims against any single contractor must not exceed $750,000 or 20 percent of the account balance on the date the Board approves payment, whichever is less. Amounts recovered from other sources are deducted, and the Board is subrogated to the injured person's rights, including rights against a surety bond or cash bond. The Board's eligibility decision is final and not subject to judicial review. NRS 624.480 requires an injured person to file a complaint with the Board or its designee within four years after completion of the qualified services. The Board states that the fund is available to owners of single-family residences who contracted with a licensed residential contractor on or after October 1, 1999, suffered actual damages, and exhausted other means of recovery. It is not available to homeowners who hired unlicensed contractors, and NRS 624.510 also bars recovery where the owner pulled the building permit, acted as owner-builder, or remodeled with intent to rent, lease or sell the residence within one year. The notice is a contract duty. NRS 624.520 requires a residential contractor to notify the owner of these rights by including a written statement, headed RESIDENTIAL CONSTRUCTION RECOVERY FUND, in the agreement for qualified services. The Board may impose an administrative fine of not more than $250 for a first violation and not more than $500 for a second or subsequent violation, and it publishes the required disclosure form for all residential contracts.
Sourcesleg.state.nv.us 1nvcontractorsboard.com 2nvcontractorsboard.com 3
What a residential remodeling contract must contain
Since October 1, 2023, NRS 624.970 governs any contract between a residential contractor and the owner of a single-family residence who occupies it, for work concerning a residential improvement. The statute defines that work as construction, remodeling, repair or improvement performed to a completed single-family residence, which puts ordinary remodeling squarely inside it. Photovoltaic work and pool and spa work are carved out and handled by their own sections. The contract must state in writing the residential contractor's name, address, contractors license number and the monetary limit on that license. It must give the owner's name and mailing address and the property address or legal description, the date of execution, the estimated completion date, a description of the work, and the total amount to be paid including all applicable taxes. It must state that the contractor provided the owner with the notice and informational form required by NRS 624.520 and 624.600. For a project of new work it must include a plan and scale drawing with specifications, materials and equipment; for projects consisting exclusively of repairs to existing work, plans and scale drawings are not required. The contract must contain a method for the owner to initial provisions to show they were read and understood. Near the signatures it must carry a notice that the owner may contact the Board for help clarifying provisions, has the right to request a payment and performance bond if one is not already required, may contact an attorney, and may ask for a contract written in the language in which it was explained. All written information must be printed in at least 10-point bold type. The money terms are capped. The initial down payment or deposit must not exceed $1,000 or 10 percent of the aggregate contract price, whichever is less, unless the contractor has filed a consumer protection bond of $100,000 with the Board or obtained Board relief. A contract breaking that paragraph is voidable by the owner. The progress payment schedule must show each payment in dollars and cents and the stage of construction that earns it, and must never let the contractor receive more than 100 percent of the value of work performed. Any change in scope or price must be written up as a change order and accepted by the owner or it is not enforceable.
Sourcesleg.state.nv.us
Lien disclosures and the right of rescission
Two more disclosure duties attach to residential remodeling. NRS 624.600 requires a general building contractor to give the owner of a single-family residence, in writing, the name, license number, business address and telephone number of all subcontractors it has contracted with on the project and of all persons furnishing material valued at $500 or more, plus notice that such a person may record a notice of lien against the residence under NRS 108.226, plus a Board-prescribed informational form about contractors and about mechanics and materialmen's liens. NRS 624.970 then requires the contract to state that these notices were provided. Rescission comes from the deceptive trade practices chapter. NRS 598.180 defines a door-to-door sale as a sale of consumer goods or services with a purchase price of $25 or more resulting from door-to-door or other personal solicitation by the seller, whether invited or not, made at a place other than the seller's place of business. NRS 598.230 lets the buyer rescind by written notice delivered, mailed or telegraphed no later than midnight of the third business day after the contract was entered into or signed. Under NRS 598.150 a business day is any calendar day except Sunday and the listed state holidays. NRS 598.240 requires the seller to furnish a fully completed receipt or copy of the contract at the time of sale, in the same language used in the oral sales presentation, carrying a bold cancellation statement in immediate proximity to the buyer's signature. NRS 598.250 requires a detachable duplicate NOTICE OF CANCELLATION form in boldface. Payments are returned within 10 business days. Violating these sections is a deceptive trade practice.
Sourcesleg.state.nv.us 1leg.state.nv.us 2
Advertising, license display and public verification
Nevada regulates what a remodeler puts on a sign, a truck and a website. NRS 624.720 states that all advertising by a licensed contractor must include the name of the contractor's company and the number of the contractor's license. The same section defines advertising broadly: any sign, card or device, or permitting any sign or marking on a motor vehicle, in a building or structure, in a newspaper or magazine, in an airway transmission, on the Internet, or in any directory under the listing of contractor, with or without limiting qualifications. The section also makes it unlawful to advertise as a contractor without a license in the appropriate classification established by NRS 624.215 and 624.220, including for a person otherwise exempt under NRS 624.031. An unlicensed person who advertises to perform construction work must state in the advertisement that he or she is not licensed. It is unlawful to advertise using a license number that does not correspond to a valid license, and unlawful for a licensee to disseminate false or misleading statements of material fact in advertising. Omitting the number is separately actionable. NRS 624.3017 makes advertising projects of construction without the name and license number of the responsible licensed contractor, and advertising projects beyond the scope of the license, cause for disciplinary action. NRS 624.710 allows an administrative fine of not less than $1,000 and not more than $50,000 per violation. After notice and a hearing, the Board may order the advertiser to cease and desist and to disconnect the advertised telephone number, and may ask the Public Utilities Commission of Nevada to order the provider to disconnect it. On vehicles, NRS 624.288 requires a licensee to display on each commercial motor vehicle registered in the licensee's name the licensee's name and license number in letters and numbers approximately 1 1/2 inches high. The Board runs a public Contractor License Search by license number, company name, or principal or qualified individual name, with wildcard searching, plus a separate disciplinary search.
Sourcesleg.state.nv.us 1app.nvcontractorsboard.com 2
Penalties for unlicensed contracting
NRS 624.700 makes it unlawful for any person or combination of persons to engage in the business or act in the capacity of a contractor in Nevada, or to submit a bid on a job in Nevada, without an active license, unless exempt under NRS 624.031. District attorneys prosecute violations in their counties, and on the Board's request the Attorney General prosecutes instead. The money consequences stack. A person convicted may be required to pay court costs and the costs of prosecution, the Board's reasonable costs of investigating the violation, damages caused up to the amount of the person's pecuniary gain, or any combination of those. A bid submitted or a contract entered into in violation is deemed void from the start, which strips the unlicensed party of the contract it was counting on. NRS 624.750 sets the criminal scale, and the Board summarizes it the same way: first offense a misdemeanor, second a gross misdemeanor, third a category E felony. The statute puts a first offense fine at not less than $1,000 and not more than $4,000, with up to six months in county jail. A second offense carries not less than $4,000 and not more than $10,000, with up to 364 days. A third or subsequent offense carries not less than $10,000 and not more than $20,000, with one to four years in state prison. Where the violation is unlicensed contracting and the person commenced work or received money, the maximum fine may be exceeded by an enhancement of up to 10 percent of the contract value. Separately, NRS 624.710 permits an administrative fine of $1,000 to $50,000 per violation, and NRS 624.212 lets the Board issue a cease and desist order against unlicensed activity. NRS 624.3015 makes contracting with an unlicensed contractor cause for discipline against a licensee.
Sourcesleg.state.nv.us 1nvcontractorsboard.com 2
City and county requirements in the largest metros
A state license is not the whole stack. NRS 624.035 states that nothing in chapter 624 prevents the governing body of a county or incorporated city from requiring an additional contractors license within that political subdivision, subject to additional standards that are reasonable and necessary to protect the public there. A Las Vegas valley remodeler therefore deals with both the Board and a local licensing agency. Clark County's Department of Business License explains the layering. The county contains six licensing jurisdictions, each with its own agency: unincorporated Clark County, the City of Henderson, the City of Las Vegas, the City of North Las Vegas, Boulder City and the City of Mesquite. The primary location of the business decides which one issues the license, and a large part of the valley carries a Las Vegas mailing address while sitting in unincorporated Clark County. If the business is based in a city but travels into the county to work, a Clark County license may be required on top of the city license. County license fees are based on the services and activities provided, and every business license fee is accompanied by a one-time $45 application fee. Multiple licenses may be required for more than one service. The county's own steps put the state obligations in order: register and obtain the Nevada state business license under NRS 76, register with the Nevada Department of Taxation, and file a fictitious firm name with the Clark County Clerk if operating under any name other than the registered entity name. The county notes that the fictitious firm name is the name used in advertising, including storefronts, signs, business cards and websites, and that advertising under more than one name requires multiple business licenses. The City of Las Vegas runs its own business license department for businesses inside city limits.
Sourcesleg.state.nv.us 1clarkcountynv.gov 2lasvegasnevada.gov 3