Problems in State Contractor's Licensing Law Part Seven
Nevada Contractor's Licensing LawThe Nevada contractor licensing laws are found in the Nevada Revised Statutes Title 54 Chapter 624 Contractors. N.R.S. Section 624.220 (2003) authorizes a board for regulation of all classes of contractors and provides for monetary limits on the field and scope of operations of a licensed contractor. N.R.S. Section 624.260 (2003) requires applicants and licensees to demonstrate experience, knowledge and financial responsibility in order to acquire a license.
1) Minor Work Exemption: Residential rental repairs under $500.00.
2) Exemptions/Exceptions: N.R.S. Section 624.031 provides a list of persons exempted from licensure requirements.
3) Assignment/Transfer: N.R.S. Section 624.305 prohibits assignment, transfer or other unauthorized use of another person's license. If a natural person holds a license on behalf of a business and ceases to be employed by that firm then the licensing board must be notified in writing within 10 days. N.R.S. Section 624.285 (2003) If
Nevada Contractor's Licensing Lawthe notice is given, the license remains in force for a reasonable length of time not exceeding 30 days after the date of the termination of employment. The business must then get a new licensee in order to continue doing business as a contractor. The failure to give the notice to the board within the 10 day period results in automatic suspension of the license. Violation of this section results in automatic cancellation and revocation of the license. Unlicensed persons cannot sue on their contracts. N.R.S. Section 624.700. Two licensees cannot combine their monetary limits to engage in contract activities or joint ventures exceeding the monetary limits of their individual licenses. N.R.S. Section 624.740. Licensees are not allowed to act as an agent, partner or associate of an unlicensed person. N.R.S. Section 624.3014. (also see N.R.S. 624.260)
4) Penalties: Licensees are required to keep records and to maintain a bond. N.R.S. Section 624.3013. Engaging in work that
Nevada Contractor's Licensing Lawrequires a contractor's license while the license is inactive is also illegal. N.R.S. Section 624.3015.
5) Insurance/Bond: A licensee must prove financial responsibility. N.R.S. 624.262; license renewal is governed by N.R.S. Section 624.283; failure to keep a bond pursuant to N.R.S. 624.270, acting in the capacity of a contractor under any license issued in the name of another and allowing an unlicensed person to use a license or acting as agent, partner or associate of an unlicensed person are all cause for disciplinary action pursuant to N.R.S. 624.3014. N.R.S. 624.3015 lists other grounds for disciplinary action.
6) Reciprocity: Nevada has reciprocity with Arizona, California and Utah if the applicant has worked in the trade for five of the past seven years except, there is no reciprocity for electrical contractor licensees.
Nevada Contractor's Licensing Laws7) Special Rules: Nevada state law preempts municipalities and precludes them from issuing a business license to any person to act as a contractor unless the person is licensed by the State Contractors Board. Attorney General Opinion 208 (10-5-1976).