Nevada runs a Recovery Fund that can pay a homeowner financially damaged by a licensed contractor, and your contract is legally required to tell you it exists. Residential contractors here pay into it through a biennial assessment scaled to the size of their license, and a contractor who leaves the notice out of the agreement faces an administrative fine. Check your contract for that paragraph before you sign it.
NRS 624.520 requires a residential contractor to include in any agreement or contract for qualified services a written statement of the owner’s rights under the Recovery Fund provisions. The mandated language tells the owner that payment may be available from the Recovery Fund if they are damaged financially by a project performed on their residence pursuant to a contract, including construction, remodeling, repair or other improvements, where the damage resulted from certain specified violations of Nevada law by a contractor licensed in this State. Omitting the notice carries an administrative fine, higher for a repeat violation.
The fund itself is established by NRS 624.470. Residential contractors pay a biennial assessment scaled to the monetary limit on the license, and the Board administers and accounts separately for that money, using it to settle claims made by injured persons under the recovery statutes. The Board reduces the assessment when the balance reaches a set proportion of the previous year’s largest balance.
Two practical points follow. The notice paragraph is a quick, honest test of whether the contractor in front of you writes Nevada-compliant contracts at all. And the fund only reaches licensed contractors, so hiring unlicensed puts you outside it entirely, whatever else goes wrong.
Nevada licenses also carry a monetary ceiling set by the Contractors Board, and a bid or contract above that ceiling is void, so compare the limit on the license with your contract price.
The Nevada checks are unusually concrete, because the state publishes the license detail and mandates the contract language. Both are visible before any money moves.
General information rather than legal advice. Claims against the Nevada Recovery Fund have eligibility conditions, deadlines and limits set out in NRS 624.400 to 624.560 that are not covered here, so check the current rules with the Nevada State Contractors Board before relying on any of this.
An account established under NRS 624.470 and funded by biennial assessments on residential contractors, scaled to the monetary limit on their license. The Board administers it separately and uses it to settle claims by injured persons under NRS 624.400 to 624.560. It exists for homeowners financially damaged by a licensed contractor on residential work.
Yes. NRS 624.520 requires a residential contractor to include a written statement of your rights in any agreement or contract for qualified services, saying payment may be available from the Recovery Fund if you are damaged financially by a project on your residence and the damage resulted from specified violations of Nevada law by a licensed contractor. Leaving it out carries an administrative fine.
No. The statutory language is about damage caused by a contractor licensed in this State. Hiring unlicensed for residential work in Nevada puts you outside the fund entirely, which is one of the strongest practical reasons to check the license first.
The monetary limit. Nevada sets a ceiling on each license and a bid or contract above that ceiling is void, so compare the limit shown on the Contractors Board register with your total contract price before signing.