You are very excited about starting your own construction company. You have been researching for days on the internet and you are finally sure that you want to be a general contractor in Nevada. You don’t know much about the requirements like getting a license or insurance because your passion is just driving you towards it, but hold on! Don’t make the mistake of jumping into the job without getting familiar with Nevada construction requirements.
It is a common misconception that Nevada does not require contractors and subcontractors to be insured or licensed. The fact is that regulations are in place, but they vary from county to county. In this article, we will explain how to get a general contractor’s license in Nevada.
Do You Need a License?
Contractors in Nevada are required to either maintain an active license or actively be on a bond. If you are going to be just subcontracting, you need not apply for a license. Even if you have some experience under your belt and will be working alone, you will need to apply for a Nevada contractor’s license.
The reason why the contractors and subcontractors need to obtain a license is that they are supposed to be insured. The fact that you have insurance means that you can deal with the damages in case of a mishap.
In Nevada, there are two types of licenses— an A-Class license and a B-Class license. The main difference between these licenses is the amount of insurance that they provide. Basically, the more expensive one (A-Class license) covers the larger amounts.
In order to apply for a contractor's license in Nevada, you will need to have proper documentation and meet some basic eligibility requirements. Make sure to take note of them before applying for the license.
Eligibility Requirements for General Contractor’s License in Nevada
The first thing that you need to check is if you are eligible for a license. Here is the list of eligibility requirements:
- You should be at least 18 years old
- You must have never been convicted of fraud, felony or any other crime involving moral turpitude. A criminal record will not automatically disqualify you from applying for a license, but you need to provide an explanation about any crime that is more than 10 years old.
- You should be a US citizen
- If you are not a U.S. citizen, you should have permission to legally work in the country
- You cannot have any judgment against you from an agency that handles professional regulations within the past five years except for medical board or tax debts
- You must also show that you either have four years of experience or a high school diploma.
- You must have passed the licensing exam with at least an overall score of 70%
If you meet all these requirements, then you can proceed with your application.
Documentation for General Contractor's Application in Nevada
When applying for a contractor’s license in Nevada, you will need to provide the following documents for consideration:
- Four copies of the application (Form CCB 804)
- Two passport size photos
- Past three years’ tax returns with all W-2s and 1099s attached (Federal, state, and self-employment are required).
- A utility bill dated within the last 30 days and it must be related to the address provided on your application.
- A bank statement showing a minimum of $10,000 in liquid assets for the past 30 days or $5,000 if you are applying as a subcontractor. Please note that these funds should not have any liens against them.
- Proof of general liability insurance (such as a binder)
You will also have to pay $50 as an application filing fee and you should know that this is non-refundable.
Application Process for General Contractor’s License in Nevada
The steps mentioned below are the general guidelines to get a license in Nevada, though there may be some variations in procedure from county to county.
1. The first thing that you need to do is to find out what kind of license is required for your work. You can check the list of licenses on the Nevada Contractors Board’s website. If you are interested in applying for a specific type of license there, you can visit this site.
2. Find an insurance company that will help you with the necessary documentation. Insurance is mandatory in Nevada so make sure to find a provider first.
3. If you don’t know what type of license to get, call your county and ask for their recommended contractor classification— it will save you a lot of time and money. Also, visit your county’s official website to find out about the requirements there.
4. Refrain from providing false information when you are filling out and submitting your application because it is a crime in Nevada. If you fail to justify or provide a testament for any activity, you won’t just be denied the license- you may get arrested as well.
5. You need to have a high school diploma or its equivalent in order to be eligible for the license application. Keep this piece of information with you so that it can serve as proof if needed!
6. When you visit your county’s board, make sure to get the updated list of required documents and their specific requirements.
7. Some of the documents that you will need to provide are: originals of your birth certificate and social security card, two different proofs of residence i.e.: a utility bill or a signed lease agreement, high school diploma certificates and transcripts or sealed transcripts if you have not attended high school, your current contact information and a driver’s license (it does not need to be current).
8. Get the names of at least two contractors who can verify that you are working on a real job. You may also get the name of your previous employer or manager so that you can provide them as an “emergency contact” in case they call you for extra information.
9. Make sure to carry all these documents with you on the day of your appointment: otherwise, the application will not be accepted! The application fee will be a little over $200. It can either be paid with cash or money order made to the State of Nevada.
10. You need to take two tests- one is computer-based and the other is in-person. It is a good idea to start preparing for them as soon as possible because the tests are always conducted on certain dates.
11. There is a deadline to pay the fee for the license so make sure that you don’t miss it! When you fail to do this, your application will be canceled and you will have to apply again later if you want another contractor’s license from Nevada. The fee has to be paid in person.
12. Now that you know how to prepare for the tests, it is time to take them! You will be asked simple questions regarding certain portions of Nevada’s building code and you also need to answer technical queries about building foundation types, specific roof types, and other essential things related to residential and commercial construction projects.
Finally, if you manage to pass all the necessary tests, congratulate yourself because it is not easy! You will get your license after your application has been reviewed and approved by several contractors’ board employees.