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NEVADA CONTRACTOR GENERAL BUSINESS AND
LAW (CMS) COMPREHENSIVE ACTUAL EXAM PREP
2026 ALL QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES |ALREADY A GRADED
WITH EXPERT FEEDBACK |NEW AND REVISED
Question 1
What is the primary purpose of the Nevada State Contractors Board
(NSCB)?
A. To issue building permits for all construction projects in the state
B. To provide financing for construction businesses
C. To regulate and license contractors to protect the public health,
safety, and welfare
D. To adjudicate contract disputes between owners and contractors
Rationale: The NSCB's primary purpose is to regulate the
construction industry by licensing qualified contractors and
investigating complaints, thereby protecting the public from
incompetent or dishonest contractors. Issuing building permits is
typically a local government function.
Question 2
According to NRS 624, which of the following activities requires a
contractor's license in Nevada?
A. Performing minor repairs valued at $500
**B. Bidding on or performing work where the total cost of labor and
materials exceeds $1,000**
C. Performing work as an employee of a licensed contractor without
supervisory duties
D. Selling construction materials to a licensed contractor
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Rationale: Nevada law requires a contractor's license for any person
who bids on or performs work where the total cost of labor and
materials exceeds $1,000. Work performed as a direct employee
without supervisory duties typically does not require licensure.
Question 3
Under NRS 624.700, what is the consequence of submitting a bid for a
construction project without a valid Nevada contractor's license?
A. The bid is automatically awarded to the lowest responsible bidder
B. The bid is void, and the person is subject to prosecution and
administrative fines
C. The bid is still valid if the person obtains a license within 30 days
D. The person is only subject to a warning from the Board
Rationale: NRS 624.700 makes it unlawful to submit a bid without an
active license; the bid is void, and the person is subject to prosecution
and administrative fines.
Question 4
A licensed contractor who bids on a project that exceeds the monetary
limit on their license is:
A. Allowed to do so if they notify the Board in writing
B. Only subject to a warning for a first offense
C. In violation of NRS 624.3015, and the bid is void
D. Automatically authorized to perform the work if they have sufficient
experience
Rationale: Bidding or contracting for a sum that exceeds the limit
placed on the license is prohibited by NRS 624.3015, and the bid or
contract is void.
Question 5
Which of the following business structures provides the LEAST
personal liability protection for a contractor?
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A. Limited Liability Company (LLC)
B. Corporation
C. Sole proprietorship
D. Limited Partnership
Rationale: A sole proprietorship does not separate business and
personal liability, exposing the owner's personal assets to business
debts and judgments. LLCs, corporations, and limited partnerships
provide some level of liability protection.
Question 6
What is the minimum number of years a Nevada contractor is required
to retain business records?
A. 4 years
B. 2 years
C. 6 years
D. 10 years
Rationale: Nevada law requires contractors to retain business records
for at least 4 years.
Question 7
How often must Nevada contractors renew their licenses?
A. Every year
B. Every 2 years
C. Every 3 years
D. Every 5 years
Rationale: Nevada contractors are required to renew their licenses
biennially (every two years).
Question 8
A general contractor must provide a written disclosure statement to the
owner for contracts exceeding which amount?
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A. $5,000
B. $10,000
**C. $25,000**
D. $50,000
Rationale: Nevada law mandates a disclosure statement for contracts
exceeding $25,000 to protect homeowners.
Question 9
Which Nevada agency is responsible for regulating and licensing
contractors?
A. Nevada Department of Labor
B. Nevada Department of Business and Industry
C. Nevada State Contractors Board (NSCB)
D. Nevada Public Utilities Commission
Rationale: The Nevada State Contractors Board (NSCB) is the state
agency responsible for licensing and regulating contractors.
Question 10
What is the maximum number of attempts a candidate has to pass the
CMS examination before the application becomes void?
A. One attempt
B. Two attempts
C. Three attempts
D. Unlimited attempts
Rationale: Candidates are allowed three attempts to pass the exam. If
an exam is failed on the third attempt, the application becomes void.
Question 11
If a candidate fails the CMS examination on their third attempt, how
long must they wait before reapplying?
A. 15 days
B. 30 days
NEVADA CONTRACTOR GENERAL BUSINESS AND
LAW (CMS) COMPREHENSIVE ACTUAL EXAM PREP
2026 ALL QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES |ALREADY A GRADED
WITH EXPERT FEEDBACK |NEW AND REVISED
Question 1
What is the primary purpose of the Nevada State Contractors Board
(NSCB)?
A. To issue building permits for all construction projects in the state
B. To provide financing for construction businesses
C. To regulate and license contractors to protect the public health,
safety, and welfare
D. To adjudicate contract disputes between owners and contractors
Rationale: The NSCB's primary purpose is to regulate the
construction industry by licensing qualified contractors and
investigating complaints, thereby protecting the public from
incompetent or dishonest contractors. Issuing building permits is
typically a local government function.
Question 2
According to NRS 624, which of the following activities requires a
contractor's license in Nevada?
A. Performing minor repairs valued at $500
**B. Bidding on or performing work where the total cost of labor and
materials exceeds $1,000**
C. Performing work as an employee of a licensed contractor without
supervisory duties
D. Selling construction materials to a licensed contractor
,2|Page
Rationale: Nevada law requires a contractor's license for any person
who bids on or performs work where the total cost of labor and
materials exceeds $1,000. Work performed as a direct employee
without supervisory duties typically does not require licensure.
Question 3
Under NRS 624.700, what is the consequence of submitting a bid for a
construction project without a valid Nevada contractor's license?
A. The bid is automatically awarded to the lowest responsible bidder
B. The bid is void, and the person is subject to prosecution and
administrative fines
C. The bid is still valid if the person obtains a license within 30 days
D. The person is only subject to a warning from the Board
Rationale: NRS 624.700 makes it unlawful to submit a bid without an
active license; the bid is void, and the person is subject to prosecution
and administrative fines.
Question 4
A licensed contractor who bids on a project that exceeds the monetary
limit on their license is:
A. Allowed to do so if they notify the Board in writing
B. Only subject to a warning for a first offense
C. In violation of NRS 624.3015, and the bid is void
D. Automatically authorized to perform the work if they have sufficient
experience
Rationale: Bidding or contracting for a sum that exceeds the limit
placed on the license is prohibited by NRS 624.3015, and the bid or
contract is void.
Question 5
Which of the following business structures provides the LEAST
personal liability protection for a contractor?
,3|Page
A. Limited Liability Company (LLC)
B. Corporation
C. Sole proprietorship
D. Limited Partnership
Rationale: A sole proprietorship does not separate business and
personal liability, exposing the owner's personal assets to business
debts and judgments. LLCs, corporations, and limited partnerships
provide some level of liability protection.
Question 6
What is the minimum number of years a Nevada contractor is required
to retain business records?
A. 4 years
B. 2 years
C. 6 years
D. 10 years
Rationale: Nevada law requires contractors to retain business records
for at least 4 years.
Question 7
How often must Nevada contractors renew their licenses?
A. Every year
B. Every 2 years
C. Every 3 years
D. Every 5 years
Rationale: Nevada contractors are required to renew their licenses
biennially (every two years).
Question 8
A general contractor must provide a written disclosure statement to the
owner for contracts exceeding which amount?
, 4|Page
A. $5,000
B. $10,000
**C. $25,000**
D. $50,000
Rationale: Nevada law mandates a disclosure statement for contracts
exceeding $25,000 to protect homeowners.
Question 9
Which Nevada agency is responsible for regulating and licensing
contractors?
A. Nevada Department of Labor
B. Nevada Department of Business and Industry
C. Nevada State Contractors Board (NSCB)
D. Nevada Public Utilities Commission
Rationale: The Nevada State Contractors Board (NSCB) is the state
agency responsible for licensing and regulating contractors.
Question 10
What is the maximum number of attempts a candidate has to pass the
CMS examination before the application becomes void?
A. One attempt
B. Two attempts
C. Three attempts
D. Unlimited attempts
Rationale: Candidates are allowed three attempts to pass the exam. If
an exam is failed on the third attempt, the application becomes void.
Question 11
If a candidate fails the CMS examination on their third attempt, how
long must they wait before reapplying?
A. 15 days
B. 30 days
