Nevada CMS Contractor Exam Study Guide
Questions And Well Graded Solutions With
Rationales Updated 2026-2027
Pass the Nevada CMS Contractor Management Survey Exam on your first try. This
comprehensive study guide features 320 updated, multiple-choice practice questions and
answers mirroring the official PSI open-book test. Covers critical Nevada construction law,
business startup regulations, financial management, lien law timelines, labor rules, and OSHA
safety compliance. Ideal for Class A, B, and C licensing candidates seeking the Nevada State
Contractors Board credential. Maximize your score now.
Question 1: Which entity is legally responsible for administering licenses and
regulating the construction industry in Nevada?
• A) Nevada Department of Transportation
• B) Department of Business and Industry
• C) Nevada State Contractors Board (NSCB)
• D) Building Department Division
Rationale: The NSCB has sole statutory authority over contractor licensing and
consumer protection within Nevada.
Question 2: How often are contractor licenses required to be renewed in the state of
Nevada?
• A) Every year
• B) Every 2 years
• C) Every 3 years
• D) Every 5 years
Rationale: Nevada contractor licenses are issued on a biennial cycle and must be
renewed every two years to remain active.
Question 3: What is the maximum statutory administrative fine that the Board can
issue for a single licensing violation?
• A) $2,000
• B) $5,000
• C) $10,000
• D) $20,000
Rationale: Under Nevada Revised Statutes (NRS 624), the Board can levy
administrative fines up to $10,000 per individual violation.
Question 4: A quorum of the Nevada State Contractors Board consists of how many
members?
• A) 3 members
• B) 4 members
• C) 5 members
• D) 7 members
Rationale: The Board consists of 7 members total; therefore, a simple majority of 4
members constitutes a legal quorum.
Question 5: If a licensed contracting business changes its official physical address,
within how many days must they notify the Board?
1|Page
,• A) 30 days
• B) 15 days
• C) 10 days
• D) 45 days
Rationale: State board regulations mandate that any change of address or key
business details must be reported in writing within 30 days.
Question 6: Which of the following is an explicit requirement to qualify as the
"Qualified Employee" (QE) for a license?
• A) Must own at least 50% of the company's stock
• B) Must possess the required field experience and pass the licensing exams
• C) Must be a registered resident of Nevada for 5 consecutive years
• D) Must hold a degree in engineering or architecture
Rationale: The Qualified Employee is the individual who proves technical
competence by passing exams and verifying trade experience.
Question 7: An applicant for a Nevada contractor's license must document a
minimum of how many years of experience in the designated trade?
• A) 2 years
• B) 3 years
• C) 4 years
• D) 5 years
Rationale: The NSCB requires a minimum of 4 years of journey-level or supervisory
experience within the last 10 years.
Question 8: What type of contractor license classification covers the construction of
structural skyscrapers and residential homes?
• A) Class A
• B) Class B
• C) Class C
• D) Class D
Rationale: Class A is General Engineering, Class B is General Building, and Class C
covers Specialty Trades.
Question 9: If a licensee changes their business structure from a sole proprietorship
to a corporation, what action must be taken regarding the license?
• A) The license transfers automatically by submitting a fee.
• B) No action is needed if the owner stays the same.
• C) A new license application must be filed for the corporate entity.
• D) The contractor operates under the old license for up to one year.
Rationale: Contractor licenses are bound to the specific business structure and
cannot be directly transferred between different entities.
Question 10: Which of the following is considered a valid ground for disciplinary
action by the Contractors Board?
• A) Refusing to work overtime hours on weekends
• B) Abandonment of a construction project without a lawful excuse
• C) Submitting a competitive bid lower than local market averages
• D) Hiring an out-of-state certified public accountant
Rationale: Project abandonment constitutes a material breach of professional
regulations and causes rapid license suspension.
2|Page
, Question 11: Who is permitted to file an official regulatory complaint with the NSCB
against a licensed contractor?
• A) Only licensed building inspectors
• B) Only sub-tier material suppliers
• C) Any property owner, client, or affected party
• D) Exclusively retaining legal counsel
Rationale: The Board accepts consumer and industry complaints from any individual
impacted by a contractor's actions.
Question 12: A residential contractor must include their license number on which of
the following items?
• A) Company-wide holiday cards
• B) Exclusively on federal tax forms
• C) All advertising, contracts, and building permit applications
• D) Internal employee training logs
Rationale: Nevada law requires explicit disclosure of the license number on all
public-facing materials and official project documents.
Question 13: What happens if a contractor acts as a contractor outside the specific
scope of their license classification?
• A) They are granted a 90-day grace period to adjust the work.
• B) They are subject to disciplinary action for unlicensed activity.
• C) No penalty applies if they hire an approved subcontractor.
• D) They receive a verbal warning from local municipal code enforcement.
Rationale: Operating beyond the scope of an assigned classification is treated with
the same severity as working without a license.
Question 14: How many years of experience credit can an applicant receive toward
their license requirement by holding an accredited construction degree?
• A) 1 year max
• B) Up to 3 years
• C) Exactly 4 years
• D) No experience credit is granted for education
Rationale: Approved college degrees or technical training can offset up to 3 years of
the 4-year field work requirement.
Question 15: What is the maximum monetary threshold for a project to qualify under
the "handyman exemption" in Nevada?
• A) $500
• B) $1,000
• C) $2,500
• D) There is no handyman exemption in Nevada
Rationale: Projects under $1,000 (including labor and materials) do not require a
license, provided they do not require a building permit.
Question 16: If a contractor fails to clear up a valid consumer complaint, the Board
can order them to pay out of which consumer-protection pool?
• A) The National Homeowners Fund
• B) The Residential Recovery Fund
• C) The NSCB General Operating Treasury
3|Page
, • D) The Nevada Line-of-Credit Reserve
Rationale: The Residential Recovery Fund provides limited financial relief to
damaged homeowners harmed by licensed contractors.
Question 17: To maintain an active license, a contractor must maintain a surety
bond. The specific dollar amount of this bond is determined by what factor?
• A) The number of employees on payroll
• B) The total square footage of their commercial office space
• C) The classification of the license and the contractor's monetary limit
• D) The geographical county where the company is headquartered
Rationale: The NSCB calculates required bond amounts based on the potential
financial exposure of the assigned monetary limit.
Question 18: What is the purpose of the contractor's designated monetary limit?
• A) It sets the maximum annual revenue the company can earn.
• B) It sets the maximum contract price the contractor can bid or perform on a
single project.
• C) It restricts the total value of assets a company can hold.
• D) It establishes hourly maximum wages for supervisors.
Rationale: Contractors are legally blocked from bidding or working on any single
contract that exceeds their approved limit.
Question 19: Which of the following is considered a prohibited act that leads to
automatic emergency license suspension?
• A) Failing to attend a local trade union meeting
• B) Fraudulent misrepresentation of a material fact to obtain a license
• C) Charging more than a 10% profit margin on a public bid
• D) Utilizing electronic digital estimating software
Rationale: Providing fraudulent data on state applications destroys the legality of the
credential, resulting in immediate revocation.
Question 20: If a contractor's license is revoked by the Board, how long must they
typically wait before applying for reinstatement?
• A) 6 months
• B) 1 year
• C) 3 years
• D) 5 years
Rationale: Regulations generally enforce a minimum 1-year waiting window before a
revoked contractor can petition for a new license.
Section 2: Contracts & Project Management (Questions 21–40)
Question 21: To be legally binding, a home improvement contract in Nevada
exceeding what dollar amount must be executed in writing?
• A) $500
4|Page
Questions And Well Graded Solutions With
Rationales Updated 2026-2027
Pass the Nevada CMS Contractor Management Survey Exam on your first try. This
comprehensive study guide features 320 updated, multiple-choice practice questions and
answers mirroring the official PSI open-book test. Covers critical Nevada construction law,
business startup regulations, financial management, lien law timelines, labor rules, and OSHA
safety compliance. Ideal for Class A, B, and C licensing candidates seeking the Nevada State
Contractors Board credential. Maximize your score now.
Question 1: Which entity is legally responsible for administering licenses and
regulating the construction industry in Nevada?
• A) Nevada Department of Transportation
• B) Department of Business and Industry
• C) Nevada State Contractors Board (NSCB)
• D) Building Department Division
Rationale: The NSCB has sole statutory authority over contractor licensing and
consumer protection within Nevada.
Question 2: How often are contractor licenses required to be renewed in the state of
Nevada?
• A) Every year
• B) Every 2 years
• C) Every 3 years
• D) Every 5 years
Rationale: Nevada contractor licenses are issued on a biennial cycle and must be
renewed every two years to remain active.
Question 3: What is the maximum statutory administrative fine that the Board can
issue for a single licensing violation?
• A) $2,000
• B) $5,000
• C) $10,000
• D) $20,000
Rationale: Under Nevada Revised Statutes (NRS 624), the Board can levy
administrative fines up to $10,000 per individual violation.
Question 4: A quorum of the Nevada State Contractors Board consists of how many
members?
• A) 3 members
• B) 4 members
• C) 5 members
• D) 7 members
Rationale: The Board consists of 7 members total; therefore, a simple majority of 4
members constitutes a legal quorum.
Question 5: If a licensed contracting business changes its official physical address,
within how many days must they notify the Board?
1|Page
,• A) 30 days
• B) 15 days
• C) 10 days
• D) 45 days
Rationale: State board regulations mandate that any change of address or key
business details must be reported in writing within 30 days.
Question 6: Which of the following is an explicit requirement to qualify as the
"Qualified Employee" (QE) for a license?
• A) Must own at least 50% of the company's stock
• B) Must possess the required field experience and pass the licensing exams
• C) Must be a registered resident of Nevada for 5 consecutive years
• D) Must hold a degree in engineering or architecture
Rationale: The Qualified Employee is the individual who proves technical
competence by passing exams and verifying trade experience.
Question 7: An applicant for a Nevada contractor's license must document a
minimum of how many years of experience in the designated trade?
• A) 2 years
• B) 3 years
• C) 4 years
• D) 5 years
Rationale: The NSCB requires a minimum of 4 years of journey-level or supervisory
experience within the last 10 years.
Question 8: What type of contractor license classification covers the construction of
structural skyscrapers and residential homes?
• A) Class A
• B) Class B
• C) Class C
• D) Class D
Rationale: Class A is General Engineering, Class B is General Building, and Class C
covers Specialty Trades.
Question 9: If a licensee changes their business structure from a sole proprietorship
to a corporation, what action must be taken regarding the license?
• A) The license transfers automatically by submitting a fee.
• B) No action is needed if the owner stays the same.
• C) A new license application must be filed for the corporate entity.
• D) The contractor operates under the old license for up to one year.
Rationale: Contractor licenses are bound to the specific business structure and
cannot be directly transferred between different entities.
Question 10: Which of the following is considered a valid ground for disciplinary
action by the Contractors Board?
• A) Refusing to work overtime hours on weekends
• B) Abandonment of a construction project without a lawful excuse
• C) Submitting a competitive bid lower than local market averages
• D) Hiring an out-of-state certified public accountant
Rationale: Project abandonment constitutes a material breach of professional
regulations and causes rapid license suspension.
2|Page
, Question 11: Who is permitted to file an official regulatory complaint with the NSCB
against a licensed contractor?
• A) Only licensed building inspectors
• B) Only sub-tier material suppliers
• C) Any property owner, client, or affected party
• D) Exclusively retaining legal counsel
Rationale: The Board accepts consumer and industry complaints from any individual
impacted by a contractor's actions.
Question 12: A residential contractor must include their license number on which of
the following items?
• A) Company-wide holiday cards
• B) Exclusively on federal tax forms
• C) All advertising, contracts, and building permit applications
• D) Internal employee training logs
Rationale: Nevada law requires explicit disclosure of the license number on all
public-facing materials and official project documents.
Question 13: What happens if a contractor acts as a contractor outside the specific
scope of their license classification?
• A) They are granted a 90-day grace period to adjust the work.
• B) They are subject to disciplinary action for unlicensed activity.
• C) No penalty applies if they hire an approved subcontractor.
• D) They receive a verbal warning from local municipal code enforcement.
Rationale: Operating beyond the scope of an assigned classification is treated with
the same severity as working without a license.
Question 14: How many years of experience credit can an applicant receive toward
their license requirement by holding an accredited construction degree?
• A) 1 year max
• B) Up to 3 years
• C) Exactly 4 years
• D) No experience credit is granted for education
Rationale: Approved college degrees or technical training can offset up to 3 years of
the 4-year field work requirement.
Question 15: What is the maximum monetary threshold for a project to qualify under
the "handyman exemption" in Nevada?
• A) $500
• B) $1,000
• C) $2,500
• D) There is no handyman exemption in Nevada
Rationale: Projects under $1,000 (including labor and materials) do not require a
license, provided they do not require a building permit.
Question 16: If a contractor fails to clear up a valid consumer complaint, the Board
can order them to pay out of which consumer-protection pool?
• A) The National Homeowners Fund
• B) The Residential Recovery Fund
• C) The NSCB General Operating Treasury
3|Page
, • D) The Nevada Line-of-Credit Reserve
Rationale: The Residential Recovery Fund provides limited financial relief to
damaged homeowners harmed by licensed contractors.
Question 17: To maintain an active license, a contractor must maintain a surety
bond. The specific dollar amount of this bond is determined by what factor?
• A) The number of employees on payroll
• B) The total square footage of their commercial office space
• C) The classification of the license and the contractor's monetary limit
• D) The geographical county where the company is headquartered
Rationale: The NSCB calculates required bond amounts based on the potential
financial exposure of the assigned monetary limit.
Question 18: What is the purpose of the contractor's designated monetary limit?
• A) It sets the maximum annual revenue the company can earn.
• B) It sets the maximum contract price the contractor can bid or perform on a
single project.
• C) It restricts the total value of assets a company can hold.
• D) It establishes hourly maximum wages for supervisors.
Rationale: Contractors are legally blocked from bidding or working on any single
contract that exceeds their approved limit.
Question 19: Which of the following is considered a prohibited act that leads to
automatic emergency license suspension?
• A) Failing to attend a local trade union meeting
• B) Fraudulent misrepresentation of a material fact to obtain a license
• C) Charging more than a 10% profit margin on a public bid
• D) Utilizing electronic digital estimating software
Rationale: Providing fraudulent data on state applications destroys the legality of the
credential, resulting in immediate revocation.
Question 20: If a contractor's license is revoked by the Board, how long must they
typically wait before applying for reinstatement?
• A) 6 months
• B) 1 year
• C) 3 years
• D) 5 years
Rationale: Regulations generally enforce a minimum 1-year waiting window before a
revoked contractor can petition for a new license.
Section 2: Contracts & Project Management (Questions 21–40)
Question 21: To be legally binding, a home improvement contract in Nevada
exceeding what dollar amount must be executed in writing?
• A) $500
4|Page
