(CMS) EXAMINATION
PRACTICE QUESTIONS WITH ANSWERS AND
RATIONALES
SECTION 1: LICENSING (Questions 1–17)
Question 1: What Nevada agency is responsible for licensing and regulating contractors in the
state?
Answer: Nevada State Contractors Board (NSCB).
Rationale: The Nevada State Contractors Board (NSCB) is the state agency responsible for
licensing and regulating contractors in Nevada. The Board's authority is derived from NRS 624,
the Nevada Contractors Law. The NSCB investigates complaints, issues citations, and can
suspend or revoke licenses.
Question 2: Which Nevada statute governs the licensing of contractors?
Answer: NRS 624 (Nevada Revised Statutes, Chapter 624).
Rationale: NRS 624 is the Nevada Contractors Law. It establishes the Nevada State Contractors
Board, defines who must be licensed, and sets out the requirements for licensing, bonds,
,insurance, discipline, and enforcement. NAC 624 contains the administrative regulations that
implement NRS 624.
Question 3: What is the minimum experience requirement to qualify for a Nevada contractor
license?
Answer: Four years (or 4,000 hours) of experience as a journeyman, foreman, supervising
employee, or contractor in the classification being applied for.
Rationale: Nevada requires applicants to demonstrate at least four years of experience within
the ten years immediately preceding the application. The experience must be in the specific
classification for which the license is sought. Applicants must provide documentation of this
experience with their application.
Question 4: A contractor must maintain a license in Nevada when the total project value exceeds
what amount?
Answer: $1,000 (including labor and materials).
Rationale: Nevada requires a contractor's license for any construction work where the total
project value exceeds $1,000, including both labor and materials. This applies to all
construction, repair, alteration, addition, or improvement projects. Working as a contractor
without a license is a misdemeanor.
,Question 5: Which Nevada contractor license class permits a firm to perform both structural and
non-structural work without a specialty endorsement?
Answer: Class B – General Building Contractor.
Rationale: The Class B General Building Contractor license allows a firm to perform both
structural and non-structural work without a specialty endorsement. Class A is for general
engineering contractors. Class C licenses are specialty contractors. The B-2 and B-7 are
residential-focused subclassifications.
Question 6: How often must a Nevada contractor's license be renewed?
Answer: Every two years.
Rationale: Nevada contractor licenses are valid for a period of two years from the date of
issuance. Renewal notices are sent by the NSCB, and licensees must renew their licenses before
the expiration date to avoid penalties and potential license suspension.
Question 7: What is the maximum monetary limit category for a Nevada contractor license with
"unlimited" bonding capacity?
Answer: $1,000,000 or more per project.
, Rationale: Nevada licenses are categorized by monetary limits based on the contractor's
financial statements and bonding capacity. The highest category allows contracts of $1,000,000
or more. Lower categories include $25,000 or less, $100,000 or less, and $500,000 or less.
Question 8: Under Nevada law, what is the maximum duration for which a contractor's license
can be suspended?
Answer: There is no fixed maximum; suspension can continue until the licensee corrects the
violation.
Rationale: Nevada law allows the NSCB to suspend a contractor's license for an indefinite
period until the licensee corrects the violation that led to the suspension. The Board has broad
disciplinary authority under NRS 624. Suspensions may be for a fixed term or until conditions
are met.
Question 9: Once you obtain your Nevada State Contractors license, it is good for how long
until the Contractors Board mails you a renewal notice?
Answer: Two years.
Rationale: Nevada contractor licenses are issued for a two-year term. The NSCB mails renewal
notices to licensees approximately 60 days before the expiration date. Licensees are responsible
for renewing their license before the expiration date.