CONTRACTOR
PRACTICE EXAMINATION
120 Questions with Correct Answers and Rationales
1. Which state agency licenses and regulates air-conditioning contractors in
Nevada?
A. Nevada Department of Business and Industry
B. Nevada State Contractors Board (NSCB)
C. Nevada Public Utilities Commission
D. Nevada Division of Industrial Relations
Correct Answer: B. Nevada State Contractors Board (NSCB)
Rationale: The Nevada State Contractors Board (NSCB), created under NRS 624,
licenses and disciplines contractors, including the C-21b air-conditioning,
refrigeration, and steam fitting classification.
2. The C-21b classification in Nevada specifically authorizes a contractor to
perform work involving:
A. Fire sprinkler system installation only
B. Air-conditioning, refrigeration, and steam fitting
C. Solar photovoltaic system installation
D. Elevator installation and repair
Correct Answer: B. Air-conditioning, refrigeration, and steam fitting
Rationale: C-21b is the Air-Conditioning, Refrigeration, and Steam Fitting
classification under the C-21 (Refrigeration and Air-Conditioning) group of licenses.
,3. Under NRS 624, a contractor's license is required for any project where the
total cost of labor, materials, and all other items is:
A. $500 or more
B. $1,000 or more
C. $2,000 or more (unless a specific statutory exemption applies)
D. $5,000 or more
Correct Answer: C. $2,000 or more (unless a specific statutory exemption
applies)
Rationale: Nevada law generally requires licensure for work valued at $1,000 or
more; however, NRS 624.031 sets $2,000 as the threshold that also considers
labor and material costs together for most classifications, and the NSCB uses this
figure as the commonly tested threshold. Always verify current statutory limits, as
they are subject to legislative change.
4. A contractor's license bond required by the Nevada State Contractors
Board primarily protects:
A. The contractor's personal assets
B. The contractor's employees only
C. Consumers, subcontractors, and suppliers who may be harmed by the
contractor's violations
D. The Nevada state general fund
Correct Answer: C. Consumers, subcontractors, and suppliers who may be
harmed by the contractor's violations
Rationale: The license bond (or cash deposit) required under NRS 624.270
provides a source of recovery for parties injured by a licensee's violation of the
contractor's license law, such as unpaid subs or defective work claims.
,5. How long is a Nevada contractor's license valid before renewal is
required?
A. 6 months
B. 1 year
C. 2 years
D. 5 years
Correct Answer: C. 2 years
Rationale: Nevada contractor licenses are issued on a two-year renewal cycle,
requiring renewal applications and fees to be submitted before expiration.
6. A contractor who allows an unlicensed person to use their license (license
lending) is subject to:
A. A written warning only
B. Disciplinary action, including fines, suspension, or revocation of the license
C. No penalty as long as the work is completed correctly
D. Automatic reinstatement of the license
Correct Answer: B. Disciplinary action, including fines, suspension, or
revocation of the license
Rationale: License lending violates NRS 624 and is grounds for disciplinary action
by the Board, including monetary penalties and license suspension or revocation.
7. What is the primary purpose of Nevada's mechanic's lien law as it relates
to a C-21b contractor?
A. To allow a contractor to place a lien on the licensing board
B. To secure payment for labor and materials furnished to improve real property
C. To register the contractor's business name
D. To exempt the contractor from paying sales tax
Correct Answer: B. To secure payment for labor and materials furnished to
improve real property
Rationale: Mechanic's liens (NRS 108) give unpaid contractors, subcontractors,
and suppliers a security interest in the improved property to help ensure payment
for labor and materials.
, 8. A homeowner disputes a completed air-conditioning installation. Which
entity would typically first attempt to resolve the complaint before litigation?
A. The Nevada Attorney General's criminal division
B. The Nevada State Contractors Board's investigation and compliance process
C. The Internal Revenue Service
D. The local police department
Correct Answer: B. The Nevada State Contractors Board's investigation and
compliance process
Rationale: The NSCB investigates consumer complaints against licensees and can
pursue administrative resolution, mediation, or disciplinary hearings before a matter
proceeds to civil court.
9. Under Nevada law, a written contract for a residential swimming pool or
home improvement project over a certain dollar amount must include a
notice informing the owner of:
A. The contractor's personal cell phone number only
B. The right to file a complaint with the Contractors Board and lien rights
C. The contractor's tax identification number
D. The manufacturer's warranty terms exclusively
Correct Answer: B. The right to file a complaint with the Contractors Board
and lien rights
Rationale: Nevada home improvement contracts must disclose consumer
protections, including notice of lien rights and the right to contact the NSCB, to help
protect the owner.