NRS § 624.700 – Contracting Without a License in Nevada

NRS 624.700 is the Nevada law prohibiting builders from contracting without a license from the Nevada State Contractors Board. If you are an unlicensed contractor, you face hefty fines and potential time in jail. In addition, any contracts you enter into are void.

The statute states that:

It is unlawful for any person or combination of persons to:

(a) Engage in the business or act in the capacity of a contractor within this State; or

(b) Submit a bid on a job situated within this State,

–> without having an active license therefor as provided in this chapter, unless that person or combination of persons is exempted from licensure pursuant to NRS 624.031.

On this page, our Las Vegas criminal defense attorneys explain Nevada laws for “unlicensed contractors” under NRS 624.700. Click on a topic to jump to that section.

• 1. Illegal Contracting
• 2. Exceptions
• 3. Defenses
• 4. Penalties
• Additional Resources

1. Illegal Contracting

NRS 624.700 prohibits you from working as a contractor in Nevada without a current, valid contractor’s license from the Nevada State Contractors Board. Specifically, it is illegal for unlicensed contractors to do either of the following:

1. Engage in the business or act in the capacity of a contractor within Nevada; or
2. Submit a bid on a job located within Nevada.¹

Example: Ed is a contractor who does not realize that his license lapsed last month. He makes a bid for a construction job in Henderson. After researching Ed’s credentials, the client discovers he is unlicensed in Nevada and reports him to the authorities. The police then arrest Ed and book him at the Henderson Detention Center.

Here, Ed can be convicted of being an unlicensed contractor in Nevada even though he honestly did not realize that his license has lapsed. It does not matter that the Henderson clients never hired Ed and he did not do any work for them. Nor would it matter if Ed had a great reputation as a contractor and never forgot to renew his license before.

Note that unlicensed contractor cases are typically prosecuted not by a county district attorney but rather the Nevada Attorney General.

2. Exceptions

There are eleven circumstances where you may lawfully work in Nevada without a license.² These include:

1. Work performed exclusively by an authorized representative of the United States Government, the State of Nevada, or an incorporated city, county, irrigation district, reclamation district, or other municipal or political corporation or subdivision of this State.
2. An officer of a court when acting within the scope of their office.
3. Work performed exclusively by a public utility operating pursuant to the regulations of the Public Utilities Commission of Nevada on construction, maintenance and development work incidental to its business.
4. An owner of property who is building or improving a residential structure on the property for their own occupancy and not intended for sale or lease.
5. In some cases, any work to repair or maintain property the value of which is less than $1,000, including labor and materials.
6. The sale or installation of any finished product, material or article of merchandise which is not fabricated into and does not become a permanent fixed part of the structure.
7. The construction, alteration, improvement or repair of personal property.
8. The construction, alteration, improvement or repair financed in whole or in part by the Federal Government and conducted within the limits and boundaries of a site or reservation, the title of which rests in the Federal Government.
9. An owner of property, the primary use of which is as an agricultural or farming enterprise, building or improving a structure on the property for his or her use or occupancy and not intended for sale or lease.
10. Construction oversight services provided to a long-term recovery group by a qualified person within a particular geographic area that is described in a proclamation of a state of emergency or declaration of disaster by the State or Federal Government.
11. A person licensed as a real estate broker, real estate broker-salesperson or real estate salesperson, acting within the scope of the license or a permit to engage in property management issued pursuant to NRS 645.6052, assists a client in scheduling work to repair or maintain residential property pursuant to a written brokerage agreement or a property management agreement.

If you are unsure whether you fall within one of the above exceptions, it is recommended you contact the Nevada State Contractors Board at (702) 486-1100 or (775) 688-1141.

3. Defenses

Effective defenses for Nevada charges of unlicensed contracting turn on the unique circumstances of the case. In our experience, the most common strategies are the following:

• The Board made a clerical error. It is possible that you are properly licensed, but the Nevada State Contractors Board does not have accurate records due to an administrative oversight. If we can show that the mistake lies with the government and not you, the case should be dismissed.
• You fall under a lawful exception. As stated in the previous section, not all contractors need a license in order to work. If we can demonstrate that you were acting pursuant to one of the legal exceptions to Nevada’s contracting licensing laws, the charges should be dropped.

Recall that it is not a defense that you genuinely did not realize that you lacked a contractor’s license or that you needed to have a license.

4. Penalties

The punishment for contracting without a license increases with each successive conviction.³ A first-time offense of violating NRS 624.700 is a misdemeanor, carrying:

• up to $1,000 in fines, and
• up to 6 months in jail, and
• possible restitution payments.

A second-time offense of violating NRS 624.700 is a gross misdemeanor, carrying:

• $2,000 to $4,000 in fines, and
• up to 364 days in jail, and
• possible restitution payments.

Finally, a third-time or subsequent offense of violating NRS 624.700 is a category E felony, carrying:

• $5,000 to $10,000 in fines, and
• incarceration of 1 to 4 years in Nevada State Prison, and
• possible restitution payments.

Restitution

The amount of restitution you may need to pay in Nevada depends on the circumstances of the case.⁴ Restitution typically consists of the following three expenses:

1. Court costs and the costs of prosecuting the case; and/or
2. Costs the Nevada State Contractors Board incurred to investigate the case; and/or
3. Damages you caused as a result of the violation up to the amount of your pecuniary gain from the violation.

Void Contracts

If you are convicted of being an unlicensed contractor in Nevada, you also lose out on any business contracts you entered into. Judges will consider those contracts void, and they cannot be enforced in a court of law.⁵

Additional Resources

For more information, refer to the following:

• The Nevada State Contractors Board – State agency that regulates and licenses contractors in Nevada.
• The Nevada Contractors Association – Trade organization representing commercial and residential contractors in Southern Nevada.
• The Associated General Contractors of Nevada – Statewide construction industry association serving commercial contractors and industry-related firms.
• NRS 624 – Nevada Revised Statutes chapter devoted to contracting laws.

Learn more in our article on disciplinary proceedings and license revocations for contractors.

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