Nevada Contracts & Change Orders
Nevada expects residential improvement work to be documented in writing, and any scope change to be captured formally. This chapter covers the written-contract requirement and change orders.
Written residential contracts
NRS 624.970 requires a written contract for residential improvement work. It applies to contracts entered into on or after October 1, 2023 between a residential contractor and the owner of a single-family residence who lives in it. The contract must describe the work, state the total price, and give the dollar amount of each progress payment, among other required contents. A clear written contract protects both the owner and the contractor; an oral estimate is not a substitute.
Change orders
When the owner requests additional work not in the original scope, it should be authorized by a written change order that states the added work, its price, and any schedule effect, signed by both parties before the work proceeds. Verbal changes are a leading cause of payment disputes on Nevada projects.
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State-specific details
State exam facts
- State regulator
- Nevada State Contractors Board (NSCB)
- Prelicensing education
- Four years of relevant experience within the last fifteen years
- Passing score
- 75%
- Scored questions
- 60
- Time limit
- 120 minutes
Does Nevada require a state contractor license?
Yes. The Nevada State Contractors Board (NSCB) licenses contractors under NRS/NAC Chapter 624, using Class A (Engineering), Class B (Building), and Class C (specialty). The Board sets a monetary limit on each license, and the financial statement an applicant files depends on the limit sought (NAC 624.593): for $1,000,000 or more it must be reviewed or audited by a CPA.
What is on the Nevada Contractor Management Survey (CMS) exam?
The CMS Business & Law exam has 60 scored questions plus 3 unscored, runs 120 minutes plus 6 for the unscored questions, and requires 45 correct (75%) to pass. It is open book, and the only reference allowed is the Construction Business and Law Manual for Nevada. Applicants must show four years of relevant experience within the last fifteen years. A separate trade exam for the license classification is also required.
How does Nevada protect residential customers?
Nevada maintains a Residential Recovery Fund, and under NRS 108.245 a Notice of Right to Lien may be given at any time after first furnishing, but the lien then reaches only the 31 days before the notice and what follows. Nevada has no personal or corporate income tax but does impose the Modified Business Tax.
Sources: https://www.nvcontractorsboard.com, https://test-takers.psiexams.com/api/content/bulletin/296
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