How much does a Nevada contractors license bond cost?
Surety bond amounts for Nevada contractors are not fixed and are determined by the Nevada State Contractors Board on a case-by-case basis. The surety bond amount ranges between $1,000 and $500,000, but varies according to the license type being applied for, the past, present, or future financial responsibility of the applicant, and a number of other criteria.
The cost of your surety bond is determined by the surety once the amount of the bond is set. The cost, or premium, is a small percentage from the total amount. For example, if you are asked to obtain a $100,000 Nevada contractors license bond and are offered a 1% quote by the surety, your annual premium will be $1,000.
Whether you are offered a small or slightly higher percentage is determined by the surety based on your personal financials, with your credit score having the greatest influence. Sureties consider a good credit score one which is 700 or above. Applicants with a high credit score can typically expect a rate between 1%-3%.
|Bond type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Nevada Contractor License Bond||$1,000 - $500,000 (varies)||1% - 3% of total bond amount||3% - 5% of total bond amount|
Have a look at our surety bond cost guide for more information about how bond cost is determined, and what you can do to reduce yours.
Other types of contractor license bonds in Nevada
Residential pool and spa contractors in Nevada may need to post an additional bond when applying for a license, which is solely for the protection of customers. The amount of this bond isn’t fixed either, and ranges between $10,000 or more than $400,000.
The Board may further require residential pool and spa contractors to obtain payment and performance bonds under certain conditions. The amounts of those bonds must be equal to or more than 50% of the amount of the contract that the contractor will be working on.
The cost of these bonds is determined in the same way as the cost of the regular Nevada contractors license bond.
Options for applicants with bad credit
Applicants with bad credit needn’t worry about not getting a bond. There are plenty of options for these applicants, thanks to our Bad Credit Program. The only difference is that rates for bad credit applicants are slightly higher than standard market rates.
Applicants under this program typically get a rate that varies between 3% and 5%.
What is the purpose of this bond?
Contractor license bonds always serve the purpose of guaranteeing protection to the public and the state. These bonds are an agreement between the State Contractors Board, the Nevada contractor, and the surety bond company which backs the bond.
If the contractor violates the terms of this agreement, a claim can be filed against their bond to request compensation for their violations. In this event, the surety is likely to provide compensation to the claimant. But, as part of the agreement, the contractor must repay– or indemnify– the surety in return.
Below you can find examples of some of the terms of the Nevada contractors license bond which, if violated, will lead to a claim:
General and Specialty Contractors
According to the Nevada contractors license bond form, a claim can be made against the contractor in the following instances:
- Non-compliance with Chapter 624 of the Nevada Revised Statutes
- Failure to perform a contract or to remove liens against the property
- Failure to pay wages to laborers or subcontractors who perform work for the contractor
- Failure to pay due sums to suppliers and materialmen who furnish materials or equipment
- Causing harm or damages to a person in the performance of a contract
Residential Pool and Spa Contractors
Conditions which may give rise to a claim against the bond of a residential pool or spa contractor are more or less the same as those above.
How to apply for a Nevada contractor license?
To become a licensed contractor, you will need to cover a number of requirements. These are:
- Complete the Application for a Contractor’s License which you can find on the Board’s website along with all additional documents required such as: background disclosures, resume of experience, financial statements and more
- Pay a $300 application processing fee
If your application is approved you will need to:
- Pay a $600 biennial license fee
- Submit your Nevada contractors license bond
- Provide proof of Workers’ Compensation Insurance
- Register with the Residential Recovery Fund and pay a fee
- Pass a number of licensing examinations or meet conditions that allow you to obtain a waiver
Make sure to contact the Nevada State Contractors Board to clarify any questions you have concerning the licensing process and how to fulfill the requirements.
Only original bond and insurance forms are accepted but we can also provide you with digital copies via fax or email if you apply with us. You need to submit the bond form within 30 days of it having been signed by the surety.
Want to know more about the Nevada contractors license bond requirements? Call our surety professionals at (866)-450-3412 to get advice and assistance!