Nevada Contractor Licensing, Business, and Law
This domain tests Nevada-specific contracting rules: licensing, classification, monetary limits, contracts, and business conduct. The exam expects you to know that fire sprinkler work requires a Nevada State Contractors Board license and that the license scope and limit control what you may bid.
Licensing basics
Nevada licenses contractors by classification. Fire protection work falls under a specialty classification for fire protection systems; verify the current classification number and scope with the Nevada State Contractors Board before bidding. A license carries a monetary limit based on the contractor's financial statement. Bidding or contracting above that limit is a violation, even if the work is within the classification.
Business conduct
Use a written contract with scope, price, schedule, and change-order procedures. Do not lend or borrow a license, and do not subcontract to an unlicensed person. Maintain workers' compensation, required bonds, and records. Notify the Board of changes in ownership, personnel, or address as required. Advertising must show the license number where required.
Worked example
A contractor holds a license with a $500,000 monetary limit. A project bid is $650,000. The contractor cannot simply take the job because the scope is fire protection work. The contractor must first increase the monetary limit through the Board's financial review process, or decline the bid. Using another contractor's license is prohibited.
Traps
Bidding above the monetary limit; assuming a specialty license covers all fire work; using an unlicensed subcontractor; working without a written change order; and failing to keep the Board informed of business changes.