How much does a construction contractor bond cost in Nevada?
The Nevada State Contractors’ Board (NSCB) requires contractors to post a surety bond in order to operate in the state. The required bond amount ranges from $1,000 to $500,000 based on the following factors:
- The type of contractors license required
- The applicant’s experience and character
- The monetary limit granted
- The applicant’s financial standing
The surety company issuing the bond determines your premium rate, which is the percentage of the total bond amount you pay as the premium. During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. EZ Surety can issue premiums for Nevada contractor license bonds for as low as $100 for applicants with standard credit. If your credit is below average, we can still offer a competitive rate for your contractors license bond.
Why are contractor bonds important in Nevada?
Contractor license bonds hold licensed contractors accountable for the quality of their work. They protect the public from damages they’ve incurred due to the contractor’s violation of licensing laws or unsatisfactory work.
When the surety company issues the bond, they provide a financial guarantee to the state that the contractor will comply with the provisions of Chapter 624, Nevada Revised Statutes. If the contractor violates these statutes, causing a loss to the consumer, the consumer can file a claim against the bond.
If the claim is valid, the surety company will cover the costs to repair the damage up to the amount of the bond. The contractor is then liable to reimburse the surety company for all damages paid.
Contractors working on pools and spas must file a consumer protection bond along with a contractor license bond. Certain pool and spa contractors may also require performance and payment bonds. Performance bonds protect the owner of the property. Payment bonds protect those who contribute labor and materials to the project.
How do I get my general contractor’s license in Nevada?
Below is a brief overview of the steps needed to obtain your contractor license in Nevada:
1. Understand the Requirements
Before applying for the license, learn what classification of license you require. The State of Nevada has three classifications for contractors:
- Class A – General Engineering Contractor: Principal business involves fixed works requiring specialized engineering knowledge and skill.
- Class B – General Building Contractor: Principal business involves construction or remodeling of buildings or structures for the support, shelter, and enclosure of persons or animals as well as movable property.
- Class C – Specialty Contractor: Contractors whose work requires specialized skills, building trades, or crafts.
2. Obtain and Complete the Application Form
You can obtain the Application for Contractor’s License form at any Nevada State Contractors Board office or via the Nevada State Contractors Board website.
3. Submit Your Application and Fee
After you complete the application you need to print it out and mail the notarized forms and all required documents to the Nevada State Contractors Board along with a $300 application fee.
4. Pass the License Examination
Applicants who qualify for the license must pass the Construction Management Survey exam unless they qualify for an exemption. You can see who is exempt from taking the examination here.
5. Post the Surety Bond
After your application is approved, the Nevada State Contractors Board will provide you with your individual surety bond requirements. You can either post the bond or pay a cash deposit.
If you have further questions regarding the licensing process, you can always visit the Nevada State Contractors Board licensing requirements page.