Nev. Rev. Stat. » NRS: CHAPTER 624 - CONTRACTORS

Nev. Rev. Stat. § 624.270

Bond or deposit: Requirements; amount; conditions

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NRS 624.270  Bond or deposit: Requirements; amount; conditions.

      1.  Before issuing a contractor’s license to any applicant, the Board shall require that the applicant:

      (a) File with the Board a surety bond in a form acceptable to the Board executed by the contractor as principal with a corporation authorized to transact surety business in the State of Nevada as surety; or

      (b) In lieu of such a bond, establish with the Board a cash deposit as provided in this section.

      2.  Before granting renewal of a contractor’s license to any applicant, the Board shall require that the applicant file with the Board satisfactory evidence that the applicant’s surety bond or cash deposit is in full force, unless the applicant has been relieved of the requirement as provided in this section.

      3.  Failure of an applicant or licensee to file or maintain in full force the required bond or to establish the required cash deposit constitutes cause for the Board to deny, revoke, suspend or refuse to renew a license.

      4.  Except as otherwise provided in subsection 6, the amount of each bond or cash deposit required by this section must be fixed by the Board with reference to the contractor’s financial and professional responsibility and the magnitude of the contractor’s operations, but must be not less than $1,000 or more than $500,000. The bond must be continuous in form and must be conditioned that the total aggregate liability of the surety for all claims is limited to the face amount of the bond irrespective of the number of years the bond is in force. A bond required by this section must be provided by a person whose long-term debt obligations are rated “A” or better by a nationally recognized rating agency. The Board may increase or reduce the amount of any bond or cash deposit if evidence supporting such a change in the amount is presented to the Board at the time application is made for renewal of a license or at any hearing conducted pursuant to NRS 624.2545 or 624.291. Unless released earlier pursuant to subsection 5, any cash deposit may be withdrawn 2 years after termination of the license in connection with which it was established, or 2 years after completion of all work authorized by the Board after termination of the license, whichever occurs later, if there is no outstanding claim against it.

      5.  After a licensee has acted in the capacity of a licensed contractor in the State of Nevada for not less than 5 consecutive years, the Board may relieve the licensee of the requirement of filing a bond or establishing a cash deposit if evidence supporting such relief is presented to the Board. The Board may at any time thereafter require the licensee to file a new bond or establish a new cash deposit as provided in subsection 4:

      (a) If evidence is presented to the Board supporting this requirement;

      (b) Pursuant to subsection 6, after notification of a final written decision by the Labor Commissioner; or

      (c) Pursuant to subsection 7.

Ê If a licensee is relieved of the requirement of establishing a cash deposit, the deposit may be withdrawn 2 years after such relief is granted, if there is no outstanding claim against it.

      6.  If the Board is notified by the Labor Commissioner pursuant to NRS 607.165 or otherwise receives notification that three substantiated claims for wages have been filed against a contractor within a 2-year period, the Board shall require the contractor to file a bond or establish a cash deposit in an amount fixed by the Board. The contractor shall maintain the bond or cash deposit for the period required by the Board.

      7.  If a contractor who performs work concerning a residential pool or spa or work concerning a residential photovoltaic system used to produce electricity:

      (a) Is determined by the Board to have violated one or more of the provisions of NRS 624.301 to 624.305, inclusive;

      (b) Enters into a contract that is later found to be void and unenforceable against the owner pursuant to subsection 5 of NRS 624.940 or pursuant to any regulation adopted by the Board with respect to contracts for work concerning a residential pool or spa;

      (c) Enters into a contract on or after October 1, 2021, that is later voided by the owner of the single-family residence pursuant to subsection 6 of NRS 624.875 or pursuant to any regulation adopted by the Board with respect to contracts for work concerning a residential photovoltaic system used to produce electricity;

      (d) Enters into a contract on or after October 1, 2025, that is later voided by the owner of the qualified multifamily affordable housing property pursuant to subsection 6 of NRS 624.875 or pursuant to any regulation adopted by the Board with respect to contracts for work concerning a residential photovoltaic system used to produce electricity; or

      (e) Has five valid complaints filed against him or her with the Board within any 15-day period,

Ê the Board may require the contractor to comply with the provisions of subsection 8.

      8.  If the Board requires a contractor described in subsection 7 to comply with the provisions of this subsection, the contractor shall, before commencing work concerning a residential pool or spa or work concerning a residential photovoltaic system used to produce electricity, obtain:

      (a) Except as otherwise provided in this subsection, a performance bond in an amount equal to not less than 50 percent of the amount of the contract, conditioned upon the faithful performance of the contract in accordance with the plans, specifications and conditions set forth in the contract. The performance bond must be solely for the protection of the owner of the property to be improved.

      (b) Except as otherwise provided in this subsection, a payment bond in an amount equal to not less than 50 percent of the amount of the contract. The payment bond must be solely for the protection of persons supplying labor or materials to the contractor, or to any of his or her subcontractors, in carrying out the provisions of the contract.

Ê A bond required pursuant to this subsection must be provided by a person whose long-term debt obligations are rated “A” or better by a nationally recognized rating agency. The contractor shall maintain the bond for the period required by the Board. The contractor shall furnish to the building department of the city or county, as applicable, in which the work will be carried out, a copy of any bond. In lieu of a performance or payment bond, the contractor may obtain an equivalent form of security approved by the Board.

      9.  As used in this section:

      (a) “Qualified multifamily affordable housing property” has the meaning ascribed to it in NRS 704.7714.

      (b) “Substantiated claim for wages” has the meaning ascribed to it in NRS 607.165.

      [6:Art. IV:186:1941; added 1951, 365]—(NRS A 1959, 868; 1963, 695; 1965, 349; 1971, 180; 1975, 1160; 1983, 318; 1985, 1057; 1987, 1139; 1997, 1513, 2688; 1999, 596; 2001, 2413, 2981; 2003, 2142; 2005, 2383; 2021, 1058; 2025, 1744)

     

Notes of Decisions
Cited in 13 cases (1 in the last 5 years), 1966–2022 · leading case: Charlie Brown Construction Co. v. City of Boulder City
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Charlie Brown Construction Co. v. City of Boulder City (1990) nev · cites it 2× “Third, a contractor's bond supplied pursuant to NRS 624.270(4) is of minimal protection because the maximum bond required is only $50,000.”
Royal Indemnity Co. v. Special Service Supply Co. (1966) nev · cites it 4× “” Appellant Royal Indemnity argues this agreement was not a “materialmen’s bond” but only ran to the statutory requirements of NRS 624.270 which, appellant insists, do not extend to simple breaches of contract to materialmen.”
Transamerica Premier Insurance v. Nelson (1994) nev · cites it 3× “Such bond is required by NRS 624.270 for respondents to engage in the business of contracting in Nevada.”
Day & Night Manufacturing Co. v. Fidelity & Casualty Co. (1969) nev · cites it 8× “Such persons need not be licensed as contractors, nor furnish the surety bond required by NRS 624.270. The section has nothing whatever to do with the scope of coverage of the surety bond.”
Genix Supply Co. v. Board of Trustees of H. & I. Fund (1968) nev · cites it 14× “270(4) which provides that, "The claim *817 of any employee of the contractor for wages shall be a preferred claim against any such bond or cash deposit.”
Tobler & Oliver Construction Co. v. Board of Trustees (1968) nev · cites it 2× “2d 816 (1968), a case involving the same respondents as here, this court held that employer contributions due under a collective bargaining agreement to the respondent constituted “wages” and were given priority under NRS 624.270(4), which provides, “A claim of any employee of…”
Balboa Insurance Co. v. Southern Distributors Corp. (1985) nev · cites it 2× “A&S had previously posted a surety bond in the amount of $10,000 with the state contractors board as a condition of its being granted a contractor’s license pursuant to NRS 624.270. Appellant Balboa Insurance Company acted as surety and A&S Roofing was named as principal of the…”
Homewood Inv. Co., Inc. v. Moses (1980) nev “273 states that “[e]ach bond or deposit required by NRS 624.270 shall be in favor of the State of Nevada for the benefit of any person who:.”
Midland Insurance v. Yanke Plumbing & Heating, Inc. (1983) nev “273(1)(c) defines one group of intended beneficiaries of a contractor’s licensing bond, issued pursuant to and in conformance with NRS 624.270, as suppliers or materialmen who furnished materials or equipment for construction covered by the contract.”
Boswell v. Insurance Company of North America (1969) nev · cites it 2× “When the bond was written the liability provision of the statute read: “Every person injured by the unlawful acts or omissions of a contractor who has filed a bond . .”
L & H Builders Supply v. Boyd Co. (1977) nev “Boyd then moved for summary judgment for the full amount of its claim, on the ground that claims for fringe benefits were entitled to priority over claims of materialmen, relying on NRS 624.”
U.S. for the use and benefit of Complete Demo Services v. Multi-Corp Resources, Inc. (2022) nvd “21 Here, the United States Army Corps of Engineers financed Multi-Corp’s primary contract 22 for construction to be conducted within the boundaries of two military bases, the title of which 23 24 2 NRS 624.270 requires that any applicant seeking a contractor’s license must file…”
Show all 13 citing cases →
— Nev. Rev. Stat. § 624.270(1) — 1 case
Genix Supply Co. v. Board of Trustees of H. & I. Fund (1968) nev “270(4) which provides that, "The claim *817 of any employee of the contractor for wages shall be a preferred claim against any such bond or cash deposit.”
— Nev. Rev. Stat. § 624.270(3) — 1 case
Genix Supply Co. v. Board of Trustees of H. & I. Fund (1968) nev “270(4) which provides that, "The claim *817 of any employee of the contractor for wages shall be a preferred claim against any such bond or cash deposit.”
— Nev. Rev. Stat. § 624.270(4) — 4 cases
Charlie Brown Construction Co. v. City of Boulder City (1990) nev “Third, a contractor's bond supplied pursuant to NRS 624.270(4) is of minimal protection because the maximum bond required is only $50,000.”
Transamerica Premier Insurance v. Nelson (1994) nev “Such bond is required by NRS 624.270 for respondents to engage in the business of contracting in Nevada.”
Tobler & Oliver Construction Co. v. Board of Trustees (1968) nev “2d 816 (1968), a case involving the same respondents as here, this court held that employer contributions due under a collective bargaining agreement to the respondent constituted “wages” and were given priority under NRS 624.270(4), which provides, “A claim of any employee of…”
Genix Supply Co. v. Board of Trustees of H. & I. Fund (1968) nev “270(4) which provides that, "The claim *817 of any employee of the contractor for wages shall be a preferred claim against any such bond or cash deposit.”
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