What Is a Nevada Contractor License Bond?
Any contractor working in Nevada must comply with the Nevada State Contractors Board and obtain a valid license to do business. Part of the licensing process is posting a Nevada contractor license bond, which functions as a form of security for customers.
If a contractor misuses funds, does not keep financial records, or violates state or local building codes, a claim can be made against a Nevada contractor license bond.
How Does a Nevada Contractor License Bond Work?
Like other surety bonds, a Nevada contractor license bond is an agreement between three parties.
The obligee is the state authority responsible for overseeing licensing requirements. In this case, the Nevada State Contractors Board is the obligee.
The principal is the contractor who is required to obtain the bond.
The surety company provides the bond to the principal and pays any claims made against the bond; however, the principal is ultimately required to repay the claim over time.
Nevada Contractor License Bond Obligee Details
Under Nevada law, all contractors working in the state must have a valid license in order to conduct business legally. Part of the licensing requirements include the need to secure a Nevada contractor license bond.
The State Contractors Board is the obligee of the bond because it enforces licensing laws and regulations. The obligee contact information is as follows:
Nevada State Contractors Board
Southern Nevada Office:
2310 Corporate Circle, Suite 200
Henderson, Nevada 89074
Northern Nevada Office:
5390 Kietzke Lane, Suite 102
Reno, Nevada 89511
Who Needs to Get a Nevada Contractor License Bond?
In Nevada, anyone who performs residential or commercial construction work must have a license to do business. A Nevada contractor license bond is also required as part of the licensing process. Contractors required to secure a surety bond may include:
- General contractors
- Residential contractors
- Commercial contractors
- Electrical or mechanical contractors
- Pool and spa contractors
How Do I Get a Nevada Contractor License Bond?
Obtaining the Nevada contractor license bond you need begins with submitting an application and request for a bond quote. You can complete this process online quickly, and receive the exact pricing of your bond after the surety company reviews your application details.
What Does a Nevada Contractor License Bond Cost?
Several factors determine how much a Nevada contractor license bond will cost, including the type of contractor license you hold and the financial stability of your business.
The bond amount you need also plays a role, and this can range significantly depending on your business. Nevada contractors may be required to post a bond from $1,000 up to $500,000, but this is not the price you pay to get bonded.
A Nevada contractor license bond costs only a fraction of the total bond put in place. You are charged a percentage of the bond, known as the bond premium, that ranges from 1 to 10 percent.
Can I Get a Nevada Contractor License Bond with Bad Credit?
The surety company providing your Nevada contractor license bond reviews your personal credit score, experience in the industry, and business financials to determine the rate you pay.
You can still get a contractor license bond with bad credit, but it will result in a higher bond premium because you may be a greater risk to the surety company when it comes to future claims.
Bond Expiration Date and Renewal Terms for Contractors in Nevada
Nevada contractor licenses issued by the state expire two years from the date of issue. Contractor license bonds have the same expiration date and term of the license.
When it comes time to renew a Nevada contractor license bond, the surety company provides information on how to complete the renewal process before the expiration date so your license remains valid.