Common Pitfalls for Contractors
Contractors have a tough enough job without the extra burden of steep penalties or costly litigation. It would be wise to avoid some of the common pitfalls that might befall a contractor. Four of the most common pitfalls for contractors are contracting without a license, specialty contracting without a license for the specialty, omitting duties concerning licenses, and advertising without a license.
I. Contracting without a License
It is unlawful for any individual to engage in the business of a contractor or act in the capacity of a contractor, or submit a bid on a job located in Nevada without having an active license from the Nevada State Contractors Board (NSCB), unless that individual is exempted from licensure.
An individual who is convicted for a violation of contracting without a license may be arrested, fined, ordered to pay investigation fees, court costs, and restitution, or any combination of the above. If you are a new contractor in Nevada, or if you are an established contractor but have questions regarding your licenses status, do not hesitate to contact our office. Our attorneys are willing to walk you through the licensing process in order to help you avoid any unintentional consequences of contracting without a license.
II. Specialty Contracting without a License for the Specialty
Unless the general building contractor holds the appropriate specialty license, he or she may only contract to perform specialty contracting if he or she is a prime contractor on a project. A general building contractor cannot perform specialty contracting in plumbing, electrical, refrigeration, air-conditioning or fire protection without a license for the specialty.
A violation for specialty contracting without the required specialty licenses may result in the the Nevada State Contractor’s Board suspending or revoking an already issued license. The Board may also refuse renewals of a license, impose limits on the field, scope and monetary limit of the license; impose an administrative fine, or order a licensee to repay monies or correct work done without a specialty license at the contractor’s expense. If ordered to make corrections, the Board may require the licensee to perform the corrective work himself or herself, hire and pay another licensee to perform the corrective work, or pay the owner of the construction project a specified sum to correct the condition.
III. Omitting Duties Concerning Licenses
Each licensee must include the number of his or her license and any monetary limit placed upon the license, in all bids or contracts for construction work within Nevada. A residential contractor must notify an owner with whom he or she contracts of the rights of the owner including providing a written statement explaining those rights.
Failure to comply with these requirements may result in the Board imposing various fines for failure to comply with these requirements.
IV. Advertising without a License
“Advertising” includes the issuance of any sign, card, or device, or the permitting or allowing of any sign or marking on a motor vehicle, in any building, structure, newspaper, magazine or airway transmission, on the Internet or in any directory under the listing of “contractor.”
It is unlawful for any individual to advertise as a contractor unless the individual has a license in the appropriate classification. Any individual not licensed who advertises to perform or complete construction work or a work of improvement must state in the advertisement that he or she is not licensed.
Advertising violations can result in fines, and even jail time depending on the individual’s history of offenses.
If you are a contractor facing one of these common pitfalls, it is important that you speak with an attorney right away. Your business depends on it. Call The Wright Law Group today. With over 25 years of experience in Contractor Law and Litigation, The Wright Law Group, P.C. is well-equipped to assist you. Call us now at (702) 405-0001 to arrange a consultation.