Financial responsibility of applicant or licensee: Additional requirements for certain applicants and licensees engaged in residential construction.
1. In addition to any other requirements set forth in this chapter, if an applicant will engage in residential construction and the applicant or the natural person qualifying on behalf of the applicant pursuant to NRS 624.260 has not held a contractor’s license issued pursuant to this chapter within the 2 years immediately preceding the date that the application is submitted to the Board, the Board shall require the applicant to establish his financial responsibility by submitting to the Board:
(a) A financial statement that is prepared by an independent certified public accountant; and
(b) Any other information required by the Board.
2. Before the Board may issue a contractor’s license to the applicant, the Board must determine whether, based on the financial information concerning the applicant, it would be in the public interest to do any or all of the following:
(a) Require the applicant to obtain the services of a construction control with respect to any money that the applicant requires a purchaser of a new residence to pay in advance to make upgrades to the new residence. If the Board imposes such a requirement, the applicant may not:
(1) Be related to the construction control or to an employee or agent of the construction control; or
(2) Hold, directly or indirectly, a financial interest in the business of the construction control.
(b) Establish an aggregate monetary limit on the contractor’s license, which must be the maximum combined monetary limit on all contracts that the applicant may undertake or perform as a licensed contractor at any one time, regardless of the number of contracts, construction sites, subdivision sites or clients. If the Board establishes such a limit, the Board:
(1) Shall determine the period that the limit is in effect; and
(2) During that period, may increase or decrease the limit as the Board deems appropriate.
3. If the Board issues a contractor’s license to an applicant described in subsection 1, for the first 2 years after the issuance of the license, the licensee must submit to the Board, with each application for renewal of the license:
(a) A financial statement that is prepared by an independent certified public accountant; and
(b) A statement setting forth the number of building permits issued to and construction projects completed by the licensee during the immediately preceding year and any other information required by the Board. The statement submitted pursuant to this paragraph must be provided on a form approved by the Board.
4. Before the Board may renew the contractor’s license of the licensee, the Board must determine whether, based on the financial information concerning the licensee, it would be in the public interest to do any or all of the following:
(a) Require the licensee to obtain the services of a construction control with respect to any money that the licensee requires a purchaser of a new residence to pay in advance to make upgrades to the new residence. If the Board imposes such a requirement, the licensee may not:
(1) Be related to the construction control or to an employee or agent of the construction control; or
(2) Hold, directly or indirectly, a financial interest in the business of the construction control.
(b) Establish an aggregate monetary limit on the contractor’s license, which must be the maximum combined monetary limit on all contracts that the licensee may undertake or perform as a licensed contractor at any one time, regardless of the number of contracts, construction sites, subdivision sites or clients. If the Board establishes such a limit, the Board:
(1) Shall determine the period that the limit is in effect; and
(2) During that period, may increase or decrease the limit as the Board deems appropriate.
NRS 624.265
Last modified: February 27, 2006