Nevada NASCLA Contractor Exam Questions and Correct Answers Verified 2025/2026 with Solution

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Nevada NASCLA Contractor Exam –
Questions And Correct Answers (Verified
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1. What is the primary purpose of a contractor’s license bond in
Nevada?
A. Guarantee profits
B. Protect the contractor
C. Ensure project completion
D. Protect the public from contractor violations
The bond exists to protect consumers and the state from financial harm
caused by contractor misconduct.
2. Which document typically defines the scope of work for a
construction project?
A. Purchase order
B. Contract
C. Invoice
D. Change order
The contract serves as the primary description of the agreed project
scope.
3. Which accounting method records revenue when it is earned, not
when paid?



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A. Cash
B. Accrual
C. Direct cost
D. Expense-based
Accrual accounting recognizes revenue when earned and expenses when
incurred.
4. Nevada requires contractors to notify the Board of address changes
within:
A. 10 days
B. 30 days
C. 60 days
D. 90 days
Licensees must update the Nevada State Contractors Board within 30
days.
5. Which is considered an indirect cost?
A. Concrete
B. Rebar
C. Labor
D. Office rent
Indirect costs are overhead expenses not tied to a specific job.
6. A change order must be:
A. Verbal
B. A text message
C. In writing
D. None of the above
Change orders must be documented in writing to be legally enforceable.



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7. What is the typical retention percentage on construction projects?
A. 2%
B. 5%
C. 10%
D. 20%
Retention is commonly 10% unless otherwise stated.
8. What is the first step in project planning?
A. Job costing
B. Scheduling
C. Defining the scope
D. Contract billing
The project scope forms the basis for all planning.
9. Workers’ compensation insurance is required when a contractor:
A. Works alone
B. Has subcontractors
C. Has employees
D. Has liability insurance
Workers’ compensation is mandatory when employees are hired.
10. Which document lists the sequence of construction tasks?
A. Budget
B. Contract
C. Schedule
D. Blueprint
The schedule identifies the project timeline and order of activities.
11. What is the purpose of a punch list?




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