Nevada Risk Management, Bonds & Insurance
Bonds and insurance shift construction risk in different ways, and Nevada requires coverage for a contractor's workers. This chapter covers surety bonds versus insurance and the industrial-insurance requirement.
Surety bonds versus insurance
A surety bond is a three-party guarantee among the principal (contractor), the obligee (the party protected), and the surety. If the surety pays a claim, the contractor must reimburse it. Insurance, by contrast, is a two-party contract that transfers the insured's own risk with no repayment obligation - a key distinction the exam tests.
Industrial insurance (workers' compensation)
Nevada requires employers, including contractors, to carry industrial insurance (workers' compensation) for their employees under NRS Chapter 616B. Proof of coverage is a condition of licensure, and working without it exposes the contractor to penalties and stop-work action.
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
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 monetary limit is tied to the financial statement, with a reviewed or audited CPA statement required for limits of $1,000,000 or more.
What is on the Nevada Construction Management Survey (CMS) exam?
The CMS Business & Law exam has 60 scored questions and requires 45 correct (75%) to pass; it is open book. Applicants must show four years of relevant experience within the last fifteen years. NASCLA is not accepted in Nevada.
How does Nevada protect residential customers?
Nevada maintains a Residential Recovery Fund, and lien law (NRS 108) requires a Notice of Right to Lien within 31 days. Nevada has no personal or corporate income tax but does impose the Modified Business Tax.
Sources: https://www.nvcontractorsboard.com