The Nevada State Contractors Board is responsible for the licensing and oversight of persons or entities (contractors) that perform construction work in this state. This responsibility includes making sure that licensed contractors keep adequate records and maintain the appropriate bond amount for the work being performed. This also include ensuring that the contractor maintains a certain level of financial responsibility and has made no misrepresentation or omission of a material fact during the application process or during any investigation by the board.
Adequate Record Keeping:
A contractor is required to keep records for all projects for not less than three years. NRS 624.3013(1) provides for disciplinary action for the failure to keep records showing all contracts, documents, receipts and disbursements by a licensee of all of licensee’s transactions as a contractor and to keep them open for inspection by the Board or Executive Officer for a period of not less than 3 years after the completion of any construction project or operation to which the records refer. This can lead to other problems for the licensee, for Example:
While investigating a complaint against a licensee by a homeowner the investigator asks the licensee for records to verify that the contractor had obtained the appropriate permit. The licensee assures the investigator that he had indeed pulled the appropriate permit but could not produce it. The investigator then requests a copy of the licensee’s entire file on the project, including proposal, contract, change orders, receipts for materials. The contractors cannot find the file or is missing components of the file. This prompts the investigator to demand production of ALL files for ALL projects for the last 3 years. Licensee failed to keep records of any projects longer than a year. The Board brings a claim against the licensee under section 3013(1) alleging that the licensee failed to maintain records for up to three years after completion of the project – and brings additional counts for other jobs. The Board also brings a claim against the licensee for failure to obtain the appropriate permit under NRS 624.3011(2) and begins to investigate whether the contractor pulled permits on other unrelated jobs leading to further charges.
Misrepresentation or Omission:
It is also a violation of NRS 624.3013, subsection (2), for a licensee to misrepresent or omit a material fact in connection with any information or evidence furnished the Board in connection with official matters of the Board. Thus, if an investigator believes that a licensee has misrepresented the facts or failed to disclose information the investigator believes should have been disclosed, the Board can impose disciplinary action against the licensee. Therefore, the question at issue is “what constitutes a material fact”? This is a totally subjective question and a licensee faced with a violation of this subsection should seek the assistance of a qualified attorney.
Establishing Financial Responsibility:
The Contractors Board nearly always takes the position that a licensee who is subject to disciplinary proceeding must submit a financial statement and other information to the Board when requested to do so. Under NRS 624.3010(3) it is grounds for disciplinary action if a licensee fails to establish financial responsibility at the time of renewal of the license or at any other time when required by the Board. This means that a licensee must be prepared to show an investigator that the licensee is financially responsible whenever requested to do so. On numerous occasions, the Contractors Board has taken the position that when a licensee fails to establish financial responsibility, the Board may suspend or revoke the license, refuse renewal of the license, impose limits on the field, scope and monetary limit of the license, increase the bond requirement or require additional bonds, security or indemnifications or take any other action deemed appropriate by the Board.
Because there are limits to the authority and enforcement of the provisions of Chapter 624 by the Contractors Board, and the Contractors Board frequently overreaches when it attempts to “take any other action deemed appropriate by the Board,” it is imperative that the licensee obtain the services of an experienced attorney whenever any claims are brought against them. The Wright Law Group, P.C. has decades of experience defending claims before the Contractors Board and is well equipped to assist you in handling your case. Please call us at 702-405-0001 to schedule a consultation or email us.