NEVADA CONSTRUCTION BUSINESS & LAW
EXAMINATION
Contractor Management Survey (CMS)
PRACTICE QUESTIONS WITH ANSWERS AND
RATIONALES
SECTION 1: LICENSING (Questions 1–10)
Question 1: The Nevada State Contractors Board (NSCB) is established under which Nevada
statute?
Answer: NRS 624.
Rationale: The Nevada State Contractors Board (NSCB) is established under NRS 624, the
Nevada Contractors Law. This chapter governs the licensing and regulation of contractors in
Nevada, defines who must be licensed, and sets out the requirements for licensing, bonds,
insurance, discipline, and enforcement.
Question 2: What is the minimum experience requirement to qualify for a Nevada contractor
license?
Answer: Four years of experience as a journeyman, foreman, supervising employee, or
contractor within the ten years immediately preceding the application.
,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 3: A contractor must hold 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 under NRS 624.700.
Question 4: A contractor's license must be renewed every how many years in Nevada?
Answer: Two years.
Rationale: Nevada contractor licenses are valid for a period of two years from the date of
issuance. 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
to avoid penalties and potential license suspension.
, 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: Under Nevada law, what is the maximum monetary limit category for a 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. The
NSCB determines the appropriate category for each applicant.
Question 7: A contractor must notify the NSCB of a change of address within how many days?
Answer: 30 days.
EXAMINATION
Contractor Management Survey (CMS)
PRACTICE QUESTIONS WITH ANSWERS AND
RATIONALES
SECTION 1: LICENSING (Questions 1–10)
Question 1: The Nevada State Contractors Board (NSCB) is established under which Nevada
statute?
Answer: NRS 624.
Rationale: The Nevada State Contractors Board (NSCB) is established under NRS 624, the
Nevada Contractors Law. This chapter governs the licensing and regulation of contractors in
Nevada, defines who must be licensed, and sets out the requirements for licensing, bonds,
insurance, discipline, and enforcement.
Question 2: What is the minimum experience requirement to qualify for a Nevada contractor
license?
Answer: Four years of experience as a journeyman, foreman, supervising employee, or
contractor within the ten years immediately preceding the application.
,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 3: A contractor must hold 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 under NRS 624.700.
Question 4: A contractor's license must be renewed every how many years in Nevada?
Answer: Two years.
Rationale: Nevada contractor licenses are valid for a period of two years from the date of
issuance. 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
to avoid penalties and potential license suspension.
, 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: Under Nevada law, what is the maximum monetary limit category for a 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. The
NSCB determines the appropriate category for each applicant.
Question 7: A contractor must notify the NSCB of a change of address within how many days?
Answer: 30 days.
