Introduction:
Do you have a passion for construction and aspire to run your own contracting business in the state of Nevada? If so, acquiring a Nevada contractor’s license is a crucial step toward achieving your professional goals. The process may seem daunting at first, but with the right information and preparation, you can navigate through it successfully. This article aims to provide you with a comprehensive guide on how to obtain a contractors license in Nevada.
Step 1: Determine Your License Classification:
Nevada offers various license classifications, each corresponding to a specific area of expertise within the construction industry. Before you begin the application process, determine the classification that aligns with your skills and intended line of work. The license classifications include General Engineering, General Building, Plumbing and Heating, Electrical, and many more.
In this article we will be discussing the B – General Building, and B-2 – Residential Small Commercial licenses. Selecting the appropriate classification is essential as it will determine the scope of work you can perform under your license.
The Nevada B license allows the contractors to bid on and build commercial or residential structures of any size with the proper experience.
The Nevada B-2 license allows the contractors to bid on and build commercial construction not over three (3) stories above the ground or one (1) story below the ground.
Step 2: Meet the Eligibility Requirements:
To be eligible for a contractors license in Nevada, you must fulfill certain prerequisites, which may vary depending on the classification you choose. Generally, the Nevada contractors license requirements include the following:
- At least four years of practical experience in your chosen field.
- Submitting a completed application, including personal and business information.
- Obtaining liability and workers’ compensation insurance.
- Passing the necessary exams
- Provide documentation of your company’s monetary limit value
- Pay the $300 application fee
- Include resume detailing all current and past employment
- Provide background disclosure statement and fingerprint background waiver forms for all persons listed on the application
- Form your entity
Step 3: Prepare for the Exams:
To obtain a Nevada contractors license, you must pass two types of exams: the trades exams and the business management exams. The business management exam focuses on the fundamental aspects of running a contracting business, such as accounting, estimating, and project management. The trades exam assesses your knowledge and understanding of the specific trade associated with your license classification. Prepare for these exams by studying relevant reference materials and taking practice tests to familiarize yourself with the format and content.
For the Nevada B and B-2 contractors license, the NASCLA exam is accepted as the trades exam. We recommend the NASCLA exam if you are planning to get your license in Nevada. This is because the NASCLA exam has great reciprocity across sixteen (16) different states and the U.S. Virgin Islands. If your business grows to a different state, you want to have as much reciprocity that you can.
The NASCLA Exam
The NASCLA exam is 115 questions. You must receive a 70%, or 81/115, to pass. The exam is 330-minutes long and is an open book exam that covers 23 books/documents. You are allowed to tab and highlight your books, which we recommend. The candidate information bulletin is a helpful tool to become knowledgeable about the exam. This bulletin outlines the content on this exam as follows:
- General Requirements – 25 Items
- Site Construction – 15 Items
- Concrete – 6 Items
- Masonry – 4 Items
- Metals – 6 Items
- Wood – 5 Items
- Thermal and Moisture Protection – 5 Items
- Doors, Windows, and Glazing – 5 Items
- Finishes – 5 Items
- Mechanical and Plumbing Systems – 6 Items
- Electrical Systems – 3 Items
- Procurement and Contracting Requirements – 31 Items
The Business and Management Exam
Once passing the NASCLA exam you will take the business management exam. This exam is 60 questions. You must receive a 75%, or 45/60, to pass. The Nevada business and management exam is a 120-minute open book exam, which covers 1 book. The Nevada business management candidate information bulletin outlines the course content as follows:
- Licensing – 10 Items
- Estimating and Bidding – 7 items
- Lien Law – 3 Items
- Financial Management – 12 Items
- Tax Laws – 5 Items
- Labor Laws – 5 Items
- Project Management – 3 Items Items
- Contracts – 6 Items
- Risk Management – 4 Items
- Environmental and Safety – 5 Items
Step 4: The Application:
Once you have met the eligibility requirements and adequately prepared for the exams, you can proceed to submit your application to the Nevada State Contractors Board (NSCB). Ensure that you have completed all sections of the application accurately and provided any required supporting documentation, such as proof of experience, financial statements, and insurance certificates. Pay the applicable application fee ($300) and submit your application to the NSCB for review.
You will need to include the required financial documents on your application. The Nevada State Contractors Board will determine the Nevada contractors license monetary limit value based on your financial documents.
Monetary Limits
The monetary limit values are broken up into the following categories:
- Monetary limits of $250,000 or more
- A financial statement should be prepared and reviewed or audited by an independent certified public accountant, current within 1 year from the date of the application is received.
- Monetary limits of $50,000 or more, but less than $250,000
- A compiled financial statement with full disclosures, prepared by an independent certified public accountant, current within 6 months from the date the application is received.
- Monetary limits or more than $10,000, but less than $50,000
- A compiled financial statement prepared by an independent CPA, current within 6 months from the date the application is received.
- Monetary limits of $10,000 or less
- Self-prepared statements must be current within 6 months from the date the application is received.
Form Your Entity
It is important to form your entity before completing the application. You should complete the application as the entity that you will be operating your business under. The exam taker will be the qualifier and the entity will be the licensee who holds the Nevada contractors license.
Step 5: Exam and Licensing:
Upon receiving your completed application, the NSCB will review it and notify you of your eligibility to sit for the exams. Schedule your exams through an authorized testing center and be prepared to demonstrate your knowledge and expertise. If you pass both the NASCLA exam and the business management exam, the NSCB will issue your contractor license after you fulfill any remaining requirements, such as obtaining insurance coverage and submitting the necessary fees.
Step 6: Comply with Ongoing Requirements:
Congratulations! You are now have a contractors license in Nevada. However, it is important to note that maintaining your license requires ongoing compliance with state regulations. This includes fulfilling continuing education requirements, renewing your license periodically, and adhering to all applicable laws and regulations governing the construction industry.
Conclusion:
Obtaining a contractors license in Nevada is an essential step toward establishing your own construction business and operating legally in the state. By following the steps outlined in this comprehensive guide, you can navigate through the licensing process successfully. Remember to thoroughly understand the requirements, diligently prepare for the exams, and ensure ongoing compliance to build a thriving and reputable contracting career in Nevada.