Nevada Contractor License Search
What You Should Know about Hiring a Contractor in Nevada
Nevada has over 77,000 licensed contractors, specialty contractors, and subcontractors. Choosing from this pool of contractors when working on any project is wise. Hiring a licensed contractor brings peace of mind that a qualified professional conversant with the relevant local codes and industry standards is in charge. Also, working with a local contractor comes with coverage against work-related injuries, damages, and uncompleted work. Licensed contractors are mandated to carry appropriate bond and insurance plans.
Therefore, you should verify the license of any professional in Nevada before you finalize any hiring process. This will also save you from falling victim to contract scams. Besides, you should also consider the following issues when hiring:
- Who Is a Contractor in Nevada?
- How to Search for a Contractor's License in Nevada
- Penalty for Hiring a Contractor Without a License in Nevada
- How Much Does a Contractor Charge in Nevada?
- Tips for Hiring a Contractor in Nevada
- Is Your Contractor Insured and Bonded as Required by Nevada Statutes?
- Top Home Improvement Scams in Nevada
- How to Report Fraudulent Nevada Contractors
Who Is a Contractor in Nevada?
A contractor is a business or individual who provides services in exchange for money. They can perform various tasks such as building, repairing, or improving a structure or project, and they may also submit a bid to enhance or demolish a building or other structure. Companies or individuals can hire them on a long or short-term basis.
The Nevada State Contractors Board (NSCB) handles the licensing of contractors in Nevada. All construction workers in the state, including specialty contractors and general contractors, need a license. However, certain exemptions are made for people who only work on projects that are under $1,000.
Nevada has two main categories of contractors:
- General Contractors: They oversee and manage home improvement or construction projects. They usually hire specialty contractors and handle tasks such as pulling permits, supervising workers, and ensuring that the work is completed on time and per the specifications and relevant regulations. In Nevada, they are categorized into three broad categories depending on their specialization:
- Classification A: This classification is used for projects that involve studying and applying specialized engineering techniques. This field is commonly referred to as general engineering. Subclassifications like highways, bridges, and residential pools are available for other work.
- Classification B: Construction and remodeling of commercial and residential buildings are among the activities covered by this subclassification. It can be used for prefabricated steel structures and pre-manufactured houses.
- Classification C: These include specialty trade categories like electrical, plumbing, heating, masonry, carpentry, minor repairs, and roofing and siding.
- Specialty Contractors: A specialized contractor usually focuses on a specific construction or building trade. Examples include plumbing, electrical, roofing, painting, and masonry. They can work with clients directly or be hired by general contractors to handle specific tasks on projects.
How to Search for a Contractor's License in Nevada
A contractor or specialty contractor in Nevada must hold a valid license issued by the Nevada State Board of Contractors. The Uhire Professional License Search tool can help you search for and verify whether your prospective contractors in Nevada hold a valid state-issued license. Alternatively, you can use the Nevada State Board of Contractors Verify a Contractor's License platform to confirm the licensing status of your preferred contractor is still active and valid for your intended project scope.
Penalty for Hiring a Contractor Without a License in Nevada
Unlicensed contractors can pose a risk to your finances, safety, and well-being. You should avoid hiring individuals not registered with the State Board of Contractors. Below are some potential drawbacks to hiring an unlicensed contractor:
- Unlicensed contractors typically lack insurance coverage, making you liable for any accidents or property damage during your project.
- If a contractor refuses to follow proper licensing requirements, they may not get the necessary permits to carry out your project. Doing so could lead to various penalties, such as administrative fines and a reduction in the value of your property.
- You could end up with an inexperienced and unskilled individual, leading to substandard results.
The State Board of Contractors takes unlicensed activities very seriously, and violators of this requirement may face administrative penalties. Depending on the nature of the offense (whether misdemeanor, gross misdemeanor, or class E felony), the contractor board may impose a fine of up to $50,000 and four years in jail.
How Much Does a Contractor Charge in Nevada?
Specialty contractors in Nevada charge an average of around $45 to $90 an hour. Their overall cost can be influenced by various factors, such as the scope of the project, the contractor's expertise, and the labor intensity.
The table below shows the average hourly rates for specialty contractors in Nevada. Be aware that these rates may vary based on your locality and the contractor's reputation:
Home remodeling and construction projects involve multiple laborers, suppliers, and specialty contractors. Having a general contractor handle the project can help minimize the stress of supervising these individuals. A general contractor in Nevada charges a percentage of the project's total cost, typically 10 to 20 percent. However, this figure can vary depending on the type of work and the project's complexity. Nevertheless, contracts determine their cost using one of the following pricing models:
- Lump Sum Pricing: This pricing model allows contractors to set a fixed price for their services. They usually mark up the cost estimates in case unforeseen events occur. This approach is ideal for projects that have clearly defined timelines and scopes.
- Cost Plus Pricing: This allows the contractor to set a specific amount for the work that they're doing. This method is ideal for projects with a definite scope and a clear timeline. However, it's essential to establish a maximum amount the contractor can charge to ensure the overall cost remains within budget.
Home remodeling and construction projects usually cost around $90 to $150 per square foot in Nevada. However, the actual cost can be affected by various factors, including:
- Your location,
- Site conditions,
- The scope of work to be done,
- Your contractors' experience, reputation, and expertise,
- Contractor fees,
- The urgency of the project,
- Costs of required permits, necessary materials, and other related expenses.
Tips for Hiring a Contractor in Nevada
Since home remodeling and construction projects are typically costly, finding the right contractors with the right qualifications and experience for your project is essential. As such, you should first determine the type of contractor needed for the job, irrespective of whether you are planning a new construction project, an existing structure renovation, or minor home repairs. It would help if you also considered the following tips when looking for the right contractor for your project:
- Verify the contractors have the appropriate licenses and certifications for your specific project.
- Request references from the contractors and contact their past clients to learn more about their work ethics.
- Obtain and compare detailed cost estimates from multiple contractors for your project. Be wary of significantly low or high bids, which may indicate potential scams.
- Confirm the contractors are carrying adequate liability insurance.
- Review all terms and conditions outlined in the contract thoroughly before signing. Ensure that it includes project details like the scope of the project, payment terms, and timelines.
- Keep records of all agreements, contracts, invoices, and receipts related to the project safe.
- Contact your building department to confirm the necessary permits for your project and ensure that the contractor pulls these permits before work commences.
- Ensure that you have a written contract before any work starts.
- Avoid making upfront down payments that exceed one-third of the project's total cost.
- Avoid paying with cash.
Is Your Contractor Insured and Bonded as Required by Nevada Statutes?
Contractors must maintain a surety or cash bond that usually varies from $1,000 to $500,000, depending on the type of license they are holding. In addition, contractors must provide proof of carrying workers' compensation insurance if they have employees. Even though liability insurance is not mandatory for contractors in Nevada, hiring one with adequate coverage is advisable. If you fail to confirm that the contractor you are hiring is bonded and insured, you might expose yourself to legal liabilities in the event of an unexpected accident.
Although bonds and insurance provide protection, they have their unique purposes. Bonds protect you against losses if the contractor fails to complete the agreed-upon tasks. Insurance provides the contractor and you with financial protection in case of bodily injuries, property damage, and other work-related accidents.
Hence, before hiring a contractor in Nevada, ensure they have adequate bond and insurance coverage. You should also contact the bond and insurance providers of the contractor to see if their coverage will be adequate for your project scope. We recommend contacting the Nevada State Contractors Board at (702) 486-1100 (Southern Nevada), (775) 688-1141 (Northern Nevada), or via email for more information about the bonding and workers' compensation insurance requirements of contractors in the state.
Top Home Improvement Scams in Nevada
While home improvement scams are not prevalent in Nevada, with an estimated 0.8 out of every 10,000 homeowners, it is important to be aware of red flags when dealing with contractors so that you do not fall victim to them. There are several red flags that you should be aware of before dealing with a fraudulent contractor, including:
- The contractor is unable to provide proof of a valid license, or they claim to be exempt from licensing requirements when they are not
- The contractor employs aggressive or high-pressure tactics to pressure you into making quick decisions or signing contracts without proper consideration.
- The contractor refuses or hesitates to provide a written contract, or they provide an agreement with ambiguous terms, which leaves room for misunderstandings.
- The contractor requests an upfront payment before work starts
- The contractor refuses or hesitates to provide references from past clients
- The contractor shows up unsolicited
- The contractor insists on using low-quality materials
- The contractor is unable to provide proof of liability insurance or bonding
There are several precautions that you can take to protect yourself from home improvement scams in Nevada, including:
- Verify that the contractors are correctly licensed, bonded, and insured. You should also check if there is any disciplinary action against your prospective contractors.
- Get and compare multiple estimates from different contractors for your project. Be wary of significantly low or high bids compared to other contractors, as they may indicate hidden costs.
- Ask for references from the contractor and contact their past clients.
- Execute a detailed written contract that includes the scope of work, materials to be used, payment terms, timelines, and any warranties.
- Review the contract and any other agreement carefully and ensure you understand and agree to all terms before signing.
- Avoid large upfront payments. Limit the down payment to 10 – 30 percent of the project's total cost.
- Avoid cash payments.
- Be cautious of contractors doing door-to-door solicitations.
How to Report Fraudulent Nevada Contractors
Various agencies in Nevada can handle and resolve cases involving fraudulent or unethical contractors, including:
The Nevada State Board of Contractors (NSBC).
COntracting without a valid license is a severe offense in Nevada. If you encounter unlicensed contracting, you can report it to the NSBC. Likewise, if the contractor is licensed but is involved in fraudulent business activities, you can also report to the NSBC. You can file a complaint by completing a consumer complaint form and sending it via mail to:
Northern Nevada:5390 Kietzke Lane,
Suite 102
Reno, NV 89511 Southern Nevada:
8400 West Sunset Road,
Suite 150
Las Vegas, NV 89113
The Nevada Attorney General's Office
The Nevada Attorney General's Office protects residents from bad business practices and fraud. You can report issues related to home improvement scams, contractors' deceptive business practices, and other similar issues to this office by completing an online complaint form.
Small Claims Court
If you are unsatisfied with the outcome of the complaint process handled by the AG's office, you can still file a small claims case at the relevant Justice Court in Nevada. You can only file this case if the money in dispute is not more than $10,000. However, before starting the process, you must pay a filing fee ranging from $66 to $196, depending on the amount you charge the contractor.
The Better Business Bureau (BBB)
The Better Business Bureau can help you address concerns about fraudulent contractors by calling its local branches. Reporting such offenders to the organization can help alert other consumers to their illegal ways and safeguard them from scams.
Local Police Departments
If a contractor threatens or engages in criminal activities like theft, you should immediately report the incident to the local law enforcers.