NEVADA CMS PRACTICE EXAMINATION
UPDATED QUESTIONS AND ANSWERS WITH RATIONALE
A+ GRADED| BRAND NEW RELEASE!
This comprehensive practice examination is designed for individuals seeking to pass
the Nevada Contractor Management Survey (CMS) examination, also known as the
Business and Law exam. This exam is a mandatory requirement for obtaining a
contractor's license in the state of Nevada, in addition to a trade-specific examination
[citation:5][citation:6]. It is administered by PSI on behalf of the Nevada State
Contractors Board [citation:1][citation:5]. Passing this exam demonstrates a thorough
understanding of the business, legal, and management principles required to operate
a contracting business in Nevada.
DOMAINS COVERED
1. Licensing Requirements and Regulations — Nevada Revised Statutes (NRS)
Chapter 624, Board authority, license classifications, and the application process
[citation:1][citation:5][citation:6].
2. Business Organization and Financial Management — Business structures, financial
statements, estimating, bidding, and cost control [citation:1][citation:5][citation:6].
3. Contract Management and Lien Law — Contract formation, administration, and
mechanics lien laws (NRS 108) [citation:1][citation:5][citation:6].
4. Tax and Labor Laws — State and federal tax obligations, and labor laws
governing employees [citation:1][citation:5][citation:6].
5. Risk Management and Safety — Insurance, bonding, and OSHA requirements
[citation:1][citation:5][citation:6].
6. Project Management — Scheduling, project management principles, and best
practices [citation:1][citation:5][citation:6].
1. Which Nevada statute primarily governs contractor licensing and regulation?
A. NRS Chapter 108
B. NRS Chapter 624
,C. NRS Chapter 617
D. NRS Chapter 645
**Answer: B. NRS Chapter 624**
**Rationale:** NRS Chapter 624 is Nevada's principal statutory framework
governing contractors, licensing requirements, classifications, and regulatory
authority.
2. Who administers Nevada's contractor licensing examinations on behalf of the
Nevada State Contractors Board?
A. ICC
B. OSHA
C. PSI
D. Nevada Department of Taxation
**Answer: C. PSI**
**Rationale:** The Nevada State Contractors Board contracts with PSI to administer
the examinations required for contractor licensing applicants
[citation:1][citation:5][citation:10].
3. Which examination is generally required in addition to a trade examination for
a Nevada contractor license applicant?
A. Environmental Management Examination
B. Contractor Management Survey examination
C. Building Inspector Examination
D. OSHA Supervisor Examination
,**Answer: B. Contractor Management Survey examination**
**Rationale:** Nevada generally requires the Business and Law, commonly called
CMS, examination along with applicable trade examination requirements
[citation:1][citation:5][citation:6].
4. Which Nevada contractor license classification is designated as General
Engineering?
A. Class A
B. Class B
C. Class C
D. Class D
**Answer: A. Class A**
**Rationale:** Nevada uses Class A for General Engineering contractors, while
Class B generally represents General Building and Class C specialty contracting
[citation:4][citation:9][citation:14].
5. Which Nevada license classification is designated General Building?
A. Class A
B. Class B
C. Class C
D. Class D
**Answer: B. Class B**
, **Rationale:** A Nevada Class B contractor license is the General Building
classification and covers qualifying building construction activities
[citation:4][citation:9][citation:14].
6. Which classification generally identifies specialty contractors in Nevada?
A. Class A
B. Class B
C. Class C
D. Class D
**Answer: C. Class C**
**Rationale:** Class C is Nevada's specialty contractor classification and includes
numerous specific specialty classifications and subclassifications
[citation:4][citation:9][citation:14].
7. A contractor performs work outside the scope of the classification listed on the
license. What is the primary concern?
A. The work automatically becomes engineering work
B. The contractor may be performing work without proper authorization
C. The project becomes tax exempt
D. The owner assumes contractor responsibility
**Answer: B. The contractor may be performing work without proper
authorization**
UPDATED QUESTIONS AND ANSWERS WITH RATIONALE
A+ GRADED| BRAND NEW RELEASE!
This comprehensive practice examination is designed for individuals seeking to pass
the Nevada Contractor Management Survey (CMS) examination, also known as the
Business and Law exam. This exam is a mandatory requirement for obtaining a
contractor's license in the state of Nevada, in addition to a trade-specific examination
[citation:5][citation:6]. It is administered by PSI on behalf of the Nevada State
Contractors Board [citation:1][citation:5]. Passing this exam demonstrates a thorough
understanding of the business, legal, and management principles required to operate
a contracting business in Nevada.
DOMAINS COVERED
1. Licensing Requirements and Regulations — Nevada Revised Statutes (NRS)
Chapter 624, Board authority, license classifications, and the application process
[citation:1][citation:5][citation:6].
2. Business Organization and Financial Management — Business structures, financial
statements, estimating, bidding, and cost control [citation:1][citation:5][citation:6].
3. Contract Management and Lien Law — Contract formation, administration, and
mechanics lien laws (NRS 108) [citation:1][citation:5][citation:6].
4. Tax and Labor Laws — State and federal tax obligations, and labor laws
governing employees [citation:1][citation:5][citation:6].
5. Risk Management and Safety — Insurance, bonding, and OSHA requirements
[citation:1][citation:5][citation:6].
6. Project Management — Scheduling, project management principles, and best
practices [citation:1][citation:5][citation:6].
1. Which Nevada statute primarily governs contractor licensing and regulation?
A. NRS Chapter 108
B. NRS Chapter 624
,C. NRS Chapter 617
D. NRS Chapter 645
**Answer: B. NRS Chapter 624**
**Rationale:** NRS Chapter 624 is Nevada's principal statutory framework
governing contractors, licensing requirements, classifications, and regulatory
authority.
2. Who administers Nevada's contractor licensing examinations on behalf of the
Nevada State Contractors Board?
A. ICC
B. OSHA
C. PSI
D. Nevada Department of Taxation
**Answer: C. PSI**
**Rationale:** The Nevada State Contractors Board contracts with PSI to administer
the examinations required for contractor licensing applicants
[citation:1][citation:5][citation:10].
3. Which examination is generally required in addition to a trade examination for
a Nevada contractor license applicant?
A. Environmental Management Examination
B. Contractor Management Survey examination
C. Building Inspector Examination
D. OSHA Supervisor Examination
,**Answer: B. Contractor Management Survey examination**
**Rationale:** Nevada generally requires the Business and Law, commonly called
CMS, examination along with applicable trade examination requirements
[citation:1][citation:5][citation:6].
4. Which Nevada contractor license classification is designated as General
Engineering?
A. Class A
B. Class B
C. Class C
D. Class D
**Answer: A. Class A**
**Rationale:** Nevada uses Class A for General Engineering contractors, while
Class B generally represents General Building and Class C specialty contracting
[citation:4][citation:9][citation:14].
5. Which Nevada license classification is designated General Building?
A. Class A
B. Class B
C. Class C
D. Class D
**Answer: B. Class B**
, **Rationale:** A Nevada Class B contractor license is the General Building
classification and covers qualifying building construction activities
[citation:4][citation:9][citation:14].
6. Which classification generally identifies specialty contractors in Nevada?
A. Class A
B. Class B
C. Class C
D. Class D
**Answer: C. Class C**
**Rationale:** Class C is Nevada's specialty contractor classification and includes
numerous specific specialty classifications and subclassifications
[citation:4][citation:9][citation:14].
7. A contractor performs work outside the scope of the classification listed on the
license. What is the primary concern?
A. The work automatically becomes engineering work
B. The contractor may be performing work without proper authorization
C. The project becomes tax exempt
D. The owner assumes contractor responsibility
**Answer: B. The contractor may be performing work without proper
authorization**
