Nevada contractor problems

Hired an Unlicensed Contractor in Nevada? What Owners Need to Know.

Hiring an unlicensed contractor removes most of the protections Nevada gives property owners. It is important to be realistic about this: there is usually no bond to claim against, no Recovery Fund, and no license for the Board to act on.

What it looks like

  • No license number on the contract, bid, or vehicle
  • A license number that belongs to someone else or is expired
  • A request for cash, or for you to pull the permit
  • A "handyman" doing work that requires a license

What Nevada law says

It is unlawful to act as a contractor in Nevada without a license, and a contract with an unlicensed contractor is void from the beginning (NRS 624.700). An unlicensed contractor generally cannot sue to collect payment for the work (NRS 624.320). Knowingly operating without a required license is also a deceptive trade practice (NRS 598.0923).

The handyman exemption is narrow. It covers repair or maintenance work valued under $1,000 including labor and materials, and it does not apply if a building permit is required, if the work is plumbing, electrical, refrigeration, heating, or air conditioning, or if the job is part of a larger project (NRS 624.031).

The practical problem is collection. The Residential Recovery Fund is not available when the contractor was unlicensed, and there is no license bond. The Board can issue cease and desist orders, citations, and fines, and refers cases for criminal prosecution. A court can order restitution in a criminal case, but that is not something an owner controls.

Our approach. We generally do not take disputes with unlicensed contractors, because the tools that make recovery practical are not available. If the person is collectable, small claims court is usually the better route, and the unlicensed activity should be reported to the Board.

The facts that matter

These are the questions that decide whether there is a practical path to recovery.

  • Whether the person or company held a Nevada license at the time, in the right classification
  • The value of the work, and whether a permit was required
  • How much you paid, and how
  • Whether the person has assets or income from which a judgment could be collected
  • What it costs to correct the work

Proof to gather

  • The license search result from the State Contractors Board
  • The contract, bid, texts, and advertising
  • Proof of payments
  • Photographs and an independent inspection report
  • Three written estimates from licensed contractors, which the Board requests for restitution purposes

See our guide to documenting a contractor dispute.

Options that usually fit

Common questions

Can I get my money back from an unlicensed contractor?

Sometimes, but it is difficult. There is no bond and no Recovery Fund. You would generally need to sue, often in small claims court, and then collect the judgment from the person directly. A criminal court can also order restitution if the person is prosecuted and convicted.

Do I still owe an unlicensed contractor for the work?

A contract with an unlicensed contractor is void under Nevada law, and an unlicensed contractor generally cannot sue to collect. The details can depend on the facts, so get advice before relying on this to withhold a large payment.

This page is general information about Nevada law, not legal advice. Every dispute turns on its own facts and documents.

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