Nevada Contractor General Business
and Law (CMS) Exam Questions And
Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
Download Pdf Graded A+
Licensing and Regulations
Q1: Which state agency is responsible for licensing, regulating, and
disciplining contractors in Nevada?
A. Nevada Department of Business and Industry
B. Nevada State Contractors Board (NSCB)
C. Nevada Secretary of State
D. Nevada Division of Industrial Relations
Correct Answer: B. Nevada State Contractors Board (NSCB)
Rationale: The Nevada State Contractors Board (NSCB) is the specific
regulatory body tasked with administering contractor licensing laws,
conducting examinations, and enforcing disciplinary actions under NRS
Chapter 624.
Q2: What is the minimum number of years of experience required for a
qualifying individual applying for a Nevada contractor's license?
,A. 2 years
B. 3 years
C. 4 years
D. 5 years
Correct Answer: C. 4 years
Rationale: The qualifying individual must have at least four full years of
experience at a journeyman level, or as a foreman, supervisor, or contractor
in the classification for which they are applying.
Q3: In Nevada, what is the primary role of a "qualifying individual" for
a contractor's license?
A. To provide the financial capital required for the business
B. To serve as the legal registered agent for the corporation
C. To demonstrate the required technical knowledge and experience to
oversee the contracting work
D. To manage the company's payroll and tax submissions
Correct Answer: C. To demonstrate the required technical knowledge
and experience to oversee the contracting work
Rationale: A qualifying individual is the person who passes the trade
examination and meets the experience requirements, proving to the NSCB
that the entity has the technical competency to perform the contracted
work legally and safely.
Q4: How often must a Nevada contractor's license be renewed?
A. Annually
B. Biennially (every two years)
,C. Every three years
D. Every five years
Correct Answer: B. Biennially (every two years)
Rationale: Nevada contractor licenses are valid for a two-year period.
Q5: According to the Nevada State Contractors Board (NSCB) rules, a
licensed contractor must notify the Board in writing of any change of
address or change in personnel within how many days of the change?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
Correct Answer: C. 30 days
Rationale: Nevada Revised Statutes (NRS) requires licensees to report
changes in business address, name, or personnel to the Board within 30
days.
Q6: What is the fee to renew an inactive license? (NRS 624.130)
Correct Answer: $300
Q7: What is the maximum administrative fine for abandonment or
failure to complete a construction project? (NRS 624.301, NAC
624.7251)
, Correct Answer: $10,000
Q8: Which of the following is exempt from contractor licensing
requirements under NRS 624.031?
A. Plumbing work valued at $1,000
B. An owner building a residential structure for their own occupancy and
not intended for sale
C. Electrical work valued at $2,500
D. Work performed by an unlicensed subcontractor for a licensed general
contractor
Correct Answer: B. An owner building a residential structure for their
own occupancy and not intended for sale
Rationale: NRS 624.031 exempts an owner of property who is building or
improving a residential structure for their own occupancy and not intended
for sale or lease.
Contract Law and Liens
Q9: Under Nevada's Private Works Prompt Payment Act, how many
days does a general contractor have to pay a subcontractor after
receiving payment from the owner?
A. 7 days
B. 10 days
C. 14 days
D. 30 days
Correct Answer: B. 10 days
and Law (CMS) Exam Questions And
Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
Download Pdf Graded A+
Licensing and Regulations
Q1: Which state agency is responsible for licensing, regulating, and
disciplining contractors in Nevada?
A. Nevada Department of Business and Industry
B. Nevada State Contractors Board (NSCB)
C. Nevada Secretary of State
D. Nevada Division of Industrial Relations
Correct Answer: B. Nevada State Contractors Board (NSCB)
Rationale: The Nevada State Contractors Board (NSCB) is the specific
regulatory body tasked with administering contractor licensing laws,
conducting examinations, and enforcing disciplinary actions under NRS
Chapter 624.
Q2: What is the minimum number of years of experience required for a
qualifying individual applying for a Nevada contractor's license?
,A. 2 years
B. 3 years
C. 4 years
D. 5 years
Correct Answer: C. 4 years
Rationale: The qualifying individual must have at least four full years of
experience at a journeyman level, or as a foreman, supervisor, or contractor
in the classification for which they are applying.
Q3: In Nevada, what is the primary role of a "qualifying individual" for
a contractor's license?
A. To provide the financial capital required for the business
B. To serve as the legal registered agent for the corporation
C. To demonstrate the required technical knowledge and experience to
oversee the contracting work
D. To manage the company's payroll and tax submissions
Correct Answer: C. To demonstrate the required technical knowledge
and experience to oversee the contracting work
Rationale: A qualifying individual is the person who passes the trade
examination and meets the experience requirements, proving to the NSCB
that the entity has the technical competency to perform the contracted
work legally and safely.
Q4: How often must a Nevada contractor's license be renewed?
A. Annually
B. Biennially (every two years)
,C. Every three years
D. Every five years
Correct Answer: B. Biennially (every two years)
Rationale: Nevada contractor licenses are valid for a two-year period.
Q5: According to the Nevada State Contractors Board (NSCB) rules, a
licensed contractor must notify the Board in writing of any change of
address or change in personnel within how many days of the change?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
Correct Answer: C. 30 days
Rationale: Nevada Revised Statutes (NRS) requires licensees to report
changes in business address, name, or personnel to the Board within 30
days.
Q6: What is the fee to renew an inactive license? (NRS 624.130)
Correct Answer: $300
Q7: What is the maximum administrative fine for abandonment or
failure to complete a construction project? (NRS 624.301, NAC
624.7251)
, Correct Answer: $10,000
Q8: Which of the following is exempt from contractor licensing
requirements under NRS 624.031?
A. Plumbing work valued at $1,000
B. An owner building a residential structure for their own occupancy and
not intended for sale
C. Electrical work valued at $2,500
D. Work performed by an unlicensed subcontractor for a licensed general
contractor
Correct Answer: B. An owner building a residential structure for their
own occupancy and not intended for sale
Rationale: NRS 624.031 exempts an owner of property who is building or
improving a residential structure for their own occupancy and not intended
for sale or lease.
Contract Law and Liens
Q9: Under Nevada's Private Works Prompt Payment Act, how many
days does a general contractor have to pay a subcontractor after
receiving payment from the owner?
A. 7 days
B. 10 days
C. 14 days
D. 30 days
Correct Answer: B. 10 days
