Nevada (NV) CMS Contractor Management Survey
NEVADA (NV) CMS CONTRACTOR MANAGEMENT SURVEY
COMPLETE REAL EXAM QUESTIONS AND 100% VERIFIED
ANSWERS (PASS GUARANTEE)
1. What does CMS stand for in the context of Nevada contractor licensing?
ANSWER : CMS stands for Contractor Management Survey. It is a compliance
and regulatory tool used by the Nevada State Contractors Board (NSCB) to
evaluate whether licensed contractors are maintaining proper business practices,
insurance coverage, financial responsibility, and adherence to the conditions of
their contractor's license.
2. Which Nevada state agency administers the Contractor Management
Survey?
ANSWER : The Nevada State Contractors Board (NSCB) administers the
Contractor Management Survey. The NSCB is the regulatory body responsible for
licensing, regulating, and disciplining contractors in the State of Nevada under
Nevada Revised Statutes (NRS) Chapter 624.
3. What is the primary legal authority governing contractor licensing in
Nevada?
ANSWER : The primary legal authority governing contractor licensing in Nevada
is Nevada Revised Statutes (NRS) Chapter 624, titled 'Contractors.' This chapter
establishes the Nevada State Contractors Board, defines contractor classifications,
sets licensing requirements, and authorizes enforcement actions against unlicensed
or noncompliant contractors.
4. What is the Nevada Administrative Code provision that supplements NRS
Chapter 624 for contractor regulations?
ANSWER : Nevada Administrative Code (NAC) Chapter 624 supplements NRS
Chapter 624. The NAC contains the administrative regulations adopted by the
Nevada State Contractors Board that provide specific procedural and substantive
Page 1 | Nevada State Contractors Board (NSCB) | NRS Chapter 624
, Nevada (NV) CMS Contractor Management Survey
rules governing contractor licensing, examinations, insurance requirements, and
discipline.
5. Who is required to hold a contractor's license in Nevada?
ANSWER : Any person or entity that contracts to construct, alter, repair, add to,
subtract from, improve, move, wreck, or demolish any building, highway, road,
railroad, excavation, or other structure, project, development, or improvement,
where the total cost of the project exceeds $1,000 (including labor and materials),
is required to hold a valid Nevada contractor's license.
6. What is the minimum project cost threshold that triggers the contractor
licensing requirement in Nevada?
ANSWER : The threshold is $1,000, including the combined total of labor and
material costs. Any construction project with a combined cost of $1,000 or more
requires the contractor performing the work to hold a valid Nevada State
Contractors Board license. Projects below this amount may be exempt.
7. What are the main classifications of contractor licenses issued by the
Nevada State Contractors Board?
ANSWER : The Nevada State Contractors Board issues licenses in three primary
classifications: Class A (General Engineering Contractor), Class B (General
Building Contractor), and Class C (Specialty Contractor). Class A covers large
infrastructure and engineering projects; Class B covers residential and commercial
building construction; Class C covers specialty trades such as electrical, plumbing,
HVAC, and roofing.
8. What type of work does a Class A General Engineering Contractor perform
in Nevada?
ANSWER : A Class A General Engineering Contractor in Nevada performs work
in connection with fixed works requiring specialized engineering knowledge,
including irrigation, drainage, water supply, flood control, inland waterways,
harbors, railroads, highways, tunnels, airports, sewers, mass transit systems, and
similar infrastructure projects. This classification is suited for large-scale civil
engineering work.
Page 2 | Nevada State Contractors Board (NSCB) | NRS Chapter 624
, Nevada (NV) CMS Contractor Management Survey
9. What type of work does a Class B General Building Contractor perform in
Nevada?
ANSWER : A Class B General Building Contractor in Nevada performs
construction, alteration, repair, or improvement to structures intended for the
support, shelter, or enclosure of persons, animals, chattels, or movable property of
any kind. This includes residential homes, commercial buildings, and structures
requiring the use of more than two unrelated subcontracting trades. Class B
contractors manage and coordinate the overall building process.
10. What distinguishes a Class C Specialty Contractor from Class A and Class
B contractors in Nevada?
ANSWER : A Class C Specialty Contractor is limited to performing work in a
specific trade or craft, as designated by the NSCB. Unlike Class A and Class B
contractors, who have broader scopes of work, Class C contractors specialize in
defined areas such as electrical, plumbing, HVAC, concrete, painting, flooring,
roofing, or other trades. Their license restricts them to the trade(s) listed on their
license.
11. What financial information is typically required during a Nevada CMS
review?
ANSWER : During a Nevada CMS review, a contractor must typically provide
financial statements such as balance sheets and income statements, evidence of
working capital, a current credit report, documentation of outstanding debts or
liens, and information about the contractor's overall financial solvency. The Board
uses this to assess whether the contractor can meet financial obligations to
subcontractors, suppliers, and clients.
12. What is the purpose of requiring financial statements during the CMS
process?
ANSWER : The purpose of requiring financial statements is to confirm that a
contractor maintains sufficient financial resources to complete contracted work,
pay subcontractors and suppliers, and fulfill obligations to clients. The NSCB uses
these documents to determine whether the contractor remains financially
responsible, which is a condition of holding a contractor's license under NRS
Chapter 624.
Page 3 | Nevada State Contractors Board (NSCB) | NRS Chapter 624
, Nevada (NV) CMS Contractor Management Survey
13. What types of insurance must a Nevada-licensed contractor maintain?
ANSWER : A Nevada-licensed contractor must maintain commercial general
liability (CGL) insurance with minimum limits set by the NSCB, workers'
compensation insurance if the contractor has employees (as required by NRS
Chapter 616), and any other insurance required for the specific classification of
work. Proof of current insurance must be submitted to and verified by the Board.
14. What is the minimum general liability insurance limit required for most
Nevada contractor licenses?
ANSWER : The minimum commercial general liability (CGL) insurance limit
required for most Nevada contractor licenses is $500,000 per occurrence.
However, higher limits may be required depending on the classification of the
license, the type of projects undertaken, or specific project requirements. The
NSCB must be listed as a certificate holder on the policy.
15. What Nevada law governs workers' compensation insurance requirements
for contractors?
ANSWER : Nevada Revised Statutes Chapter 616C (administered under the
broader NRS 616 series) governs workers' compensation requirements. All
contractors with employees in Nevada must maintain workers' compensation
coverage through a private insurer or the state's industrial insurance system.
Contractors acting as sole proprietors without employees may be exempt but must
file appropriate documentation with the Board.
16. What is required of a contractor who uses subcontractors for Nevada
licensed work?
ANSWER : A contractor who uses subcontractors must ensure that those
subcontractors hold appropriate Nevada contractor licenses for the scope of work
they are performing. The prime contractor remains responsible for ensuring that all
subcontracted work is performed by properly licensed individuals or entities and
that subcontractors maintain required insurance coverage.
17. What happens if a Nevada contractor fails to maintain required
insurance?
Page 4 | Nevada State Contractors Board (NSCB) | NRS Chapter 624
NEVADA (NV) CMS CONTRACTOR MANAGEMENT SURVEY
COMPLETE REAL EXAM QUESTIONS AND 100% VERIFIED
ANSWERS (PASS GUARANTEE)
1. What does CMS stand for in the context of Nevada contractor licensing?
ANSWER : CMS stands for Contractor Management Survey. It is a compliance
and regulatory tool used by the Nevada State Contractors Board (NSCB) to
evaluate whether licensed contractors are maintaining proper business practices,
insurance coverage, financial responsibility, and adherence to the conditions of
their contractor's license.
2. Which Nevada state agency administers the Contractor Management
Survey?
ANSWER : The Nevada State Contractors Board (NSCB) administers the
Contractor Management Survey. The NSCB is the regulatory body responsible for
licensing, regulating, and disciplining contractors in the State of Nevada under
Nevada Revised Statutes (NRS) Chapter 624.
3. What is the primary legal authority governing contractor licensing in
Nevada?
ANSWER : The primary legal authority governing contractor licensing in Nevada
is Nevada Revised Statutes (NRS) Chapter 624, titled 'Contractors.' This chapter
establishes the Nevada State Contractors Board, defines contractor classifications,
sets licensing requirements, and authorizes enforcement actions against unlicensed
or noncompliant contractors.
4. What is the Nevada Administrative Code provision that supplements NRS
Chapter 624 for contractor regulations?
ANSWER : Nevada Administrative Code (NAC) Chapter 624 supplements NRS
Chapter 624. The NAC contains the administrative regulations adopted by the
Nevada State Contractors Board that provide specific procedural and substantive
Page 1 | Nevada State Contractors Board (NSCB) | NRS Chapter 624
, Nevada (NV) CMS Contractor Management Survey
rules governing contractor licensing, examinations, insurance requirements, and
discipline.
5. Who is required to hold a contractor's license in Nevada?
ANSWER : Any person or entity that contracts to construct, alter, repair, add to,
subtract from, improve, move, wreck, or demolish any building, highway, road,
railroad, excavation, or other structure, project, development, or improvement,
where the total cost of the project exceeds $1,000 (including labor and materials),
is required to hold a valid Nevada contractor's license.
6. What is the minimum project cost threshold that triggers the contractor
licensing requirement in Nevada?
ANSWER : The threshold is $1,000, including the combined total of labor and
material costs. Any construction project with a combined cost of $1,000 or more
requires the contractor performing the work to hold a valid Nevada State
Contractors Board license. Projects below this amount may be exempt.
7. What are the main classifications of contractor licenses issued by the
Nevada State Contractors Board?
ANSWER : The Nevada State Contractors Board issues licenses in three primary
classifications: Class A (General Engineering Contractor), Class B (General
Building Contractor), and Class C (Specialty Contractor). Class A covers large
infrastructure and engineering projects; Class B covers residential and commercial
building construction; Class C covers specialty trades such as electrical, plumbing,
HVAC, and roofing.
8. What type of work does a Class A General Engineering Contractor perform
in Nevada?
ANSWER : A Class A General Engineering Contractor in Nevada performs work
in connection with fixed works requiring specialized engineering knowledge,
including irrigation, drainage, water supply, flood control, inland waterways,
harbors, railroads, highways, tunnels, airports, sewers, mass transit systems, and
similar infrastructure projects. This classification is suited for large-scale civil
engineering work.
Page 2 | Nevada State Contractors Board (NSCB) | NRS Chapter 624
, Nevada (NV) CMS Contractor Management Survey
9. What type of work does a Class B General Building Contractor perform in
Nevada?
ANSWER : A Class B General Building Contractor in Nevada performs
construction, alteration, repair, or improvement to structures intended for the
support, shelter, or enclosure of persons, animals, chattels, or movable property of
any kind. This includes residential homes, commercial buildings, and structures
requiring the use of more than two unrelated subcontracting trades. Class B
contractors manage and coordinate the overall building process.
10. What distinguishes a Class C Specialty Contractor from Class A and Class
B contractors in Nevada?
ANSWER : A Class C Specialty Contractor is limited to performing work in a
specific trade or craft, as designated by the NSCB. Unlike Class A and Class B
contractors, who have broader scopes of work, Class C contractors specialize in
defined areas such as electrical, plumbing, HVAC, concrete, painting, flooring,
roofing, or other trades. Their license restricts them to the trade(s) listed on their
license.
11. What financial information is typically required during a Nevada CMS
review?
ANSWER : During a Nevada CMS review, a contractor must typically provide
financial statements such as balance sheets and income statements, evidence of
working capital, a current credit report, documentation of outstanding debts or
liens, and information about the contractor's overall financial solvency. The Board
uses this to assess whether the contractor can meet financial obligations to
subcontractors, suppliers, and clients.
12. What is the purpose of requiring financial statements during the CMS
process?
ANSWER : The purpose of requiring financial statements is to confirm that a
contractor maintains sufficient financial resources to complete contracted work,
pay subcontractors and suppliers, and fulfill obligations to clients. The NSCB uses
these documents to determine whether the contractor remains financially
responsible, which is a condition of holding a contractor's license under NRS
Chapter 624.
Page 3 | Nevada State Contractors Board (NSCB) | NRS Chapter 624
, Nevada (NV) CMS Contractor Management Survey
13. What types of insurance must a Nevada-licensed contractor maintain?
ANSWER : A Nevada-licensed contractor must maintain commercial general
liability (CGL) insurance with minimum limits set by the NSCB, workers'
compensation insurance if the contractor has employees (as required by NRS
Chapter 616), and any other insurance required for the specific classification of
work. Proof of current insurance must be submitted to and verified by the Board.
14. What is the minimum general liability insurance limit required for most
Nevada contractor licenses?
ANSWER : The minimum commercial general liability (CGL) insurance limit
required for most Nevada contractor licenses is $500,000 per occurrence.
However, higher limits may be required depending on the classification of the
license, the type of projects undertaken, or specific project requirements. The
NSCB must be listed as a certificate holder on the policy.
15. What Nevada law governs workers' compensation insurance requirements
for contractors?
ANSWER : Nevada Revised Statutes Chapter 616C (administered under the
broader NRS 616 series) governs workers' compensation requirements. All
contractors with employees in Nevada must maintain workers' compensation
coverage through a private insurer or the state's industrial insurance system.
Contractors acting as sole proprietors without employees may be exempt but must
file appropriate documentation with the Board.
16. What is required of a contractor who uses subcontractors for Nevada
licensed work?
ANSWER : A contractor who uses subcontractors must ensure that those
subcontractors hold appropriate Nevada contractor licenses for the scope of work
they are performing. The prime contractor remains responsible for ensuring that all
subcontracted work is performed by properly licensed individuals or entities and
that subcontractors maintain required insurance coverage.
17. What happens if a Nevada contractor fails to maintain required
insurance?
Page 4 | Nevada State Contractors Board (NSCB) | NRS Chapter 624
