License Conditions, Scope Limitations, and Bond Requirements
License Conditions, Scope Limitations, and Bond Requirements
This domain tests license scope, maintenance, and surety bond protection. Questions turn on scope, qualifier continuity, subcontractor licensing, and bond versus insurance.
Core rules
- A license is not transferable and is limited to its classification. A roofing specialty licensee may do roofing work in that scope but may not take contracts requiring another specialty or general building/engineering authority unless a properly licensed contractor performs it.
- The licensee must maintain a qualifying party at all times. If the qualifier leaves, the licensee must notify the Board within the required period and replace the qualifier; failure can lead to suspension.
- The license number must appear on contracts, bids, advertising, and permits as required. Residential contracts must include required disclosures and payment terms.
- A prime contractor must verify that every subcontractor is properly licensed. Hiring an unlicensed subcontractor is a violation even if the prime is licensed.
- NRS 624.270 requires a surety bond in an amount set by the Board, generally scaled to gross receipts. The bond must remain in force; cancellation or expiration can suspend the license.
- The bond is a claims remedy, not liability insurance. The licensee still needs workers' compensation coverage and any required liability coverage.
- Licenses are renewed on the Board's cycle; late renewal or unreported changes can cause expiration or discipline.
Worked example
A roofing company contracts to replace a roof and also proposes to remove and rebuild a load-bearing carport structure. The roofing specialty scope does not cover structural framing. The company may perform the roofing portion, but the structural work must be performed by a contractor licensed for that scope, and the roofing company should verify that license before subcontracting. If the company performs the framing itself without the proper classification, the Board can treat it as contracting outside its license.
Traps
A bond is not a warranty or insurance policy. A "licensed" salesperson or qualifier does not automatically license a different business entity. Do not assume a roofing license covers all exterior improvements. Do not let a qualifier leave without notifying the Board and securing a replacement.