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Nevada Contractor License Bond
All Nevada contractors must file a Contractor License Bond with the Nevada State Contractors Board (NSCB) to be licensed. The Residential Pool and Spa License Bond, also known as the Consumer Protection Bond, is an additional requirement for contractors working on pools and spas in Nevada. Contractor Bonds are a form of financial protection, offering restitution to anyone harmed by a contractor's actions.
Jet is a direct surety company, meaning you can get your Contractor License Bond or Residential Pool and Spa License Bond hassle-free straight from Jet. There are no middlemen brokers in the way to add pesky commissions and fees onto your bond price.
How Much Does a Nevada Contractor Bond Cost?
The contractor license bond cost will depend on several factors including the bond limit set by the NSCB, personal credit, years in business, and classification. Bond prices start at $8 per month or $79 per year. Below are the preferred rates with Jet for several common bond limits. Not all price tiers or bond limits are shown, so be sure to view your bond price by clicking the button above.
| Bond Limit | Monthly | Annual |
|---|---|---|
| $5,000 or less | $8 | $79 |
| $10,000 | $15 | $150 |
| $15,000 | $23 | $225 |
| $20,000 | $30 | $300 |
| $30,000 | $45 | $450 |
| $50,000 | $75 | $750 |
Jet does have multi-year bond terms available which offer additional savings for contractors who purchase multiple years upfront. For example, instead of $79 for one year, if approved at that rate, you can purchase a two-year term for $138 or a three-year term for $198.
Are you currently paying a high annual premium for your bond? Jet has a monthly payment solution that works great for most contractors who do not have a large sum of cash for the bonding requirement. Pay monthly and cancel whenever you do not need the bond anymore. No fees or Annual Percentage Rates (APRs)!
What Is the License Monetary Limit and How Is It Determined?
The License Monetary Limit is the maximum contract amount that can be undertaken for one client on a single construction site. There are four monetary limit groups you can fall into. Financial statements must be submitted to the Nevada State Contractors Board, which is typically done by an independent Certified Public Accountant (CPA).
The chart below illustrates which monetary limit is necessary based on your maximum contract amount and what must be submitted to the Board for confirmation of the limit.
| Monetary Limit | What Must Be Submitted for Board Review |
|---|---|
| $10,000 or less | Financials can be submitted by CPA or using Board's online form |
| $10,000 to $50,000 | Financials submitted by a CPA current to the last 6 months |
| $50,001 to $250,000 | Financials submitted by a CPA current to the last 6 months with full disclosures |
| $250,000 or more | Financials submitted and reviewed or audited by a CPA current to the last year |
Why Are Contractor License Bonds Required in Nevada?
In addition to promoting the construction industry’s confidence and integrity, the Nevada State Contractors Board has the responsibility of protecting the public’s safety, health, and welfare.
The Contractor License and Consumer Protection Bonds are tools used to ensure the NSCB’s responsibilities are met, providing a means of restitution to individuals harmed by a contractor’s unlawful actions or unwillingness to comply with a signed contract. This can be a contract with the customer, employee, vendor, or the State. For example, if a contractor leaves the job site halfway through building a house and refuses to complete it, the homeowner can file a claim to recover damages.
By purchasing your surety bond, Jet provides a level of confidence to the Nevada Board that you will uphold your contractual obligations.
Reporting Unlicensed Contractors
Since the NSCB’s regulation of contractors strengthens the integrity of the construction industry, it is in the best interest of all contractors to weed out those who are not playing by the rules. Unlicensed contractors not only cause harm to the people of Nevada but injure the industry as a whole. Increased instances of fraudulent activity and unfinished work destabilize the integrity of contractors, causing the NSCB to become more strict in licensing requirements to ease the public’s distrust.
As such, it is in your best interest to report contractors who are not licensed to prevent their recklessness from making your licensing requirements more strict. These guys are also out there offering services that you are qualified for, stealing jobs out from under you. You can report unlicensed contractors online (http://www.nscb.nv.gov/report.html) or by calling in to:
- Las Vegas (702) 486-1160
- Reno (775) 850-7838
How to Apply for the Nevada Contractor Bond With Jet
When you’re ready, you can click the button above to start Jet’s application for a Contractor Bond. It only takes a few minutes to add in the required information to see your price and purchase the bond. Bond rates are credit-based so your social security number is needed to complete the soft credit check. Your approved rate will be available for purchase once you have completed the application.
For larger limits (over $50,000), your application will be submitted for review. We may need additional information, such as financial statements, to secure your quote so a Jet underwriter will reach out to you. Once your quote is approved, we will send you an email with a link to purchase the bond instantly.
You will receive a digital copy of your bond and a receipt to keep for your records after payment is complete.
Can Jet File the Nevada Contractor Bond for Me?
Yes, Jet will prepare your completed contractor bond form for you and file it to the NSCB! After payment is made, we automatically send the bond form out.
The original bond and license documents can be mailed or submitted to the DropBox at the Reno office at the following address:
Nevada State Contractors Board
5390 Kietzke Lane, Suite 102
Reno, NV 89511
Can I Cancel My Contractor Bond and Get a Refund?
Yes, a cancellation with a refund is possible with Jet. If you need to cancel your bond, send Jet a written request to cancel your Contractor Bond. The quickest way to do this is by sending an email to [email protected]. We will contact the Board to get the 60-day cancellation period started.
For bonds purchased by the year, once the 60th day has passed and the Board has released the bond, Jet will go ahead and calculate the remaining time into a refund.
If you were paying for the bond monthly, your payments will continue during the 60-day period to account for the continued coverage. Payments will be stopped after the cancellation is final.
How to Renew the Contractor or Pool/Spa Bond
If you are paying monthly for your Contractor Bond, you don’t need to worry about renewals! Every payment keeps your bond active as long as you need it.
If you paid for your bond in annual or multi-year terms, Jet will send you a mailed and emailed renewal notice. Simply fill out your renewal notice (online or through the mail) and Jet will take care of the rest.
Contact Jet right away if you have any changes to your bond or limit. They will need to be addressed to avoid license complications.
How Does a Licensed Contractor Avoid Nevada Surety Bond Claims?
The Rules to Follow
Contractors are expected to follow all rules and regulations stated in Chapter 624 of the Nevada Revised Statutes, as it applies to the obligations of their license and State construction standards. The statutes are extensive and should be reviewed thoroughly by all contractors looking to maintain a reputable license; the Nevada State Contractors Board also provides a Contractor Handbook for further information.
Listed below are common examples of prohibited acts that could facilitate disciplinary action, civil action, and/or a claim on your Contractor License or Pool/Spa Contractor Bond:
- Willful failure to pay suppliers or employed laborers for materials used or wages due
- Failure to remove liens filed against the property
- Abandonment of a construction project or refusal to perform and complete work unjustifiably
- Any fraudulent act involving misrepresentation of replacement parts, equipment, repairs, or services needed
- Willful disregard of contract plans and specifications without the consumer’s authorization
- Workmanship that does not comply with State construction standards
- Performing work that causes property damage or physical injury to the consumer
- Failing to take appropriate corrective action to any violations/damages that were committed during construction
Further prohibited acts can be found in the Grounds for Disciplinary Action section in Chapter 624 of the Nevada Revised Statutes.
Failure to comply with Nevada contractor laws may lead to severe penalties such as the loss of your license, large fines (per a violation), misdemeanor charges, civil action, and/or a claim on your surety bond. However, the Board has designed a successful complaint procedure that helps to resolve issues and avoids taking severe disciplinary action against licensees.
The Complaint Process
*Image is provided by Jet Insurance Company for reference only, this is not legal advice. Actual process may differ.
A complaint must be filed to the NSCB or the surety company (Jet) within two years of the infraction. Should a complaint be filed against a contractor, the Board will examine the alleged violation notice and determine whether a job site visit is warranted. If so, the contractor will be sent the consumer’s complaint and a Board investigator will schedule a site visit (the contractor and consumer must be present). In cases where the allegations are found to be valid, the contractor will be sent a Notice to Correct within five days of the initial job site inspection. The contractor is generally allowed 20 to 30 days to comply with the notice. If the contractor is unable to or refuses to resolve the issue, a Notice of Hearing and Complaint will be sent to the contractor and a reply is expected within 20 days from the date of the mailed notice (failure to reply constitutes an admission of guilt to the complaint allegations). Contractors that reply to the notice will then be given 30 days’ notice to attend a mandatory Administrative Hearing; the complainant is expected to attend. The hearing will involve testimony from both parties and the Board will determine what penalties and/or corrective action, if any, must be taken. A written Decision and Order will be issued to the contractor and consumer within 30 days of the hearing.
In rare cases where the contractor continues to refuse to resolve issues with the consumer, even after the official order to do so from the Board, the damaged party may pursue civil action. If the judge rules in favor of the claimant, the contractor’s surety bond (Contractor License Bond or Pool/Spa Contractor Bond) can be used as restitution for losses incurred by the consumer.
The Residential Recovery Fund
The consumer, if applicable, also has the additional option of filing a claim on the Board’s Residential Recovery Fund. The fund is meant for single-family residences who have suffered actual damages from a residential contractor, and who have exhausted all other means of recovery.
According to the Recovery Fund section in Chapter 624 of the Nevada Revised Statutes, licensed contractors who perform residential work are required to pay a mandatory fee to the fund every two years. The amount due is based on the monetary limit of the contractor. The chart below illustrates various monetary limit amounts and the Residential Recovery Fund fee due.
| Monetary Limit | Fee Amount Due (every two years) |
|---|---|
| $1,000,000 or less | $200 |
| More than $1,000,000 but limited | $500 |
| Unlimited | $1,000 |
As for Residential Recovery Fund proceedings, if the Board approves a damaged party’s claim (payouts cannot exceed $40k), the contractor in violation will be expected to reimburse the fund for the full amount of the claim payout. In cases where the contractor is unable to or refuses to fulfill this payment obligation, the Board may file a claim on the contractor’s surety bond for the recovery of funds lost.
It is important to note that no action may be brought against the contractor’s surety bond beyond two years of the alleged transgression.
What Happens if I Get a Nevada Contractor License Bond Claim?
Upon receiving an official claim notice, immediately contact Jet with all available information and documentation regarding the alleged violation. We will utilize these details for our own review and investigation of the bond claim.
Jet is legally obligated to notify the Nevada State Contractor Board of any action that has been commenced on your bond within 30 days of the official filing or being served with a complaint and summons (whichever comes first). This of course does not apply if the Board themselves are the ones taking action on your surety bond.
For claims that are found to be justified, Jet will make payment up to the bond limit (payouts will never exceed the bond amount). Unlike a general liability policy, where the insurance company takes on the responsibility of an accident, surety companies (like Jet) are not liable for the negligence or wrongdoing of the contractor.
You, the contractor, are responsible for your actions and the actions of your employees, and therefore must reimburse Jet for the claim payout made on behalf of your license transgression(s). An omission to do so will lead to future difficulties obtaining surety bonds in the State of Nevada, specifically contractor bonds that are required to achieve licensure status with the Nevada State Contractor Board.
Are There Other Bonds That a Nevada Contractor Needs?
Residential pool and spa contractors may be required by the Nevada State Contractors Board to get a Performance Bond to protect project owners. The amount of the bond should be no less than 50% of the contract amount.
A Payment Bond is sometimes required for pool and spa contractors by the NSCB as well which protects suppliers. The Payment Bond amount is no less than 50% of the contract amount.
A Right-of-Way Occupancy Bond is enforced for contractors applying for a permit to perform work in a public right-of-way.
In addition, certain cities and counties have bond requirements, which you can see on Jet’s Nevada Construction Bonds page.
