Bonds

Each contractor’s license issued in the State of Nevada requires a license bond. The Nevada State Contractors Board determines the amount of the bond at the time of license approval. The bond can vary in amount from $1,000 to $500,000. When determining the amount of bond required, the Board will consider the type of license requested, monetary limit granted, past, present or future financial responsibility, experience, and character of the applicant.

Once an application is approved, the applicant will receive notification regarding the amount of bond required. A surety bond or a cash deposit will be required for that amount.

Surety bonds must be executed on the form provided by the Board. The bond must be written by a surety company authorized to transact business in the State of Nevada, and whose long-term obligations are rated “A” or better.

An applicant or licensee can post a cash deposit In lieu of a surety bond. Cash deposits must be in the form of a Cashier’s Check for the full amount of the bond. A biennial administrative fee of $200.00 will be assessed for all cash bond deposits. If you choose to post a cash deposit, you should know that the State Contractors’ Board is required to hold that cash deposit for an additional two (2) years following termination of the license or relief of the bond requirement. The requirement is based on the statute of limitation for filing claims.

The following information and form is provided for use by surety companies and insurance agents.

The form has been designed so that you can enter data in the required fields, then print the completed form for the required signatures.

Before granting an original contractor’s license to, or renewing the contractor’s license of, an applicant who performs or will perform work concerning residential pools or spas, the Board shall, in addition to any other conditions for the issuance or renewal of a license, require the applicant to file with the Board a bond solely for the protection of consumers in an amount fixed by the Board; or in lieu of filing a bond, establish with the Board a cash deposit as provided in this section.

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.

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 his operations, but must be not less than $10,000 or more than $400,000.

Under certain conditions, the Board may require a residential pool and spa contractor to obtain a performance bond in an amount equal not less than 50 percent of the amount of the contract. The performance bond must be solely for the protection of the owner of the property to be improved. The contractor may also be required to obtain 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 subcontractors, in carrying out the provisions of the contract. In lieu of a performance or payment bond, the contractor may obtain an equivalent form of security approved by the Board.