What is a Nevada Contractor License Surety Bond?
The state of Nevada requires contractors to be bonded and licensed. The Nevada State Contractors Board (NSCB) determines the required bond amount based on the type of license, monetary limit granted, past, present or future financial responsibility, in addition to the experience and character of the applicant. Amounts can range from $1,000 – $500,000.
Additionally, residential pool and spa contractors are required to file a Consumer Protection Bond with the NSCB. This bond amount is set by the NSCB and ranges from $10,000 – $400,000. These bonds ensure the contractor’s compliance with the stipulations noted in Chapter 624 of the Nevada Revised Statutes.
What are the three license classifications the NSCB issues?
- Class “A” – General Engineering Contractor
- The principal business is in connection with fixed works requiring specialized engineering knowledge and skill
- Class “B” – General Building Contractor
- The principal business is in connection with the construction or remodeling of buildings or structures for the support, shelter and enclosure of persons, animals, chattels or movable property of any kind. Construction requires the use of more than two unrelated building trades or crafts, upon which he or she is a prime contractor and where the construction or remodeling of a building is the primary purpose.
- Class “C” – Specialty Contractor
- Contractors whose work requires special skills and whose principal contracting business involves the use of specialized building trades or crafts. Manufacturers are considered contractors if engaged in on-site construction alteration or repair.
How does a Nevada Contractor License Surety Bond work?
Nevada Contractor License Surety Bonds are filed for the benefit of consumers who may potentially be damaged because of defective construction or other license violations, suppliers who were not paid for materials and equipment furnished, and employees of the contractor who have not been paid wages that are due to them. If an individual is harmed by the actions of the contractor, they may file a claim with the surety company. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The contractor is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety.
What are the terms of the bond?
Nevada Contractor License Surety Bonds are filed with the Nevada State Contractors Board and renew annually. The bond is continuous and will remain in force unless cancelled by the surety company. The surety can cancel the bond at anytime by giving 60 days written notice via certified mail to the NSCB. The aggregate liability of the surety will not exceed the penal sum of the bond in any event.
How do I get a Nevada Contractor License Surety Bond?
The first step is to complete our quick online application for your free bond quote. It only takes about five minutes to complete and one of our underwriters will be in contact with you within a couple of hours with your pricing.
After you receive approval, you will sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day as we receive your signed documents and payment.
How much does a Nevada Contractor License Surety Bond cost?
Nevada Contractor License Surety Bonds are subject to underwriting and the price you will pay depends on a review of your personal credit report. Pacific Surety is proud to offer a variety of approvals, regardless of credit, with rates starting at 2% annually for well qualified applicants. It typically takes just a few hours from quote to issuance of the bond, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
- Nevada State Contractors Board
- Chapter 624 of the Nevada Revised Statutes
- Nevada State Contractors Bond Form
- Residential Pool and Spa License Bond for the Protection of Consumers Form
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Contractor License Surety Bonds – Nevada
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