Page 1 of 53
Nevada Contractor General Business and Law
(CMS) ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS LATEST UPDATE THIS YEAR
Exam Coverage
1. Nevada State Contractors Board (NSCB) – Structure, powers, fines up to $50,000,
license issuance and discipline.
2. License Classifications – Class A (engineering), Class B (building), Class C (specialty), B-2
(1-2 family), Restricted (≤$7,000).
3. Experience & Application – 4 years for non-restricted, 2 years for restricted, pre-
approval, background check, financial statements.
4. Bonding – Surety bond, bid bond, performance bond, payment bond, restricted bond
minimum $2,000.
5. Contracts – Written required over $2,500, license number, 3-day rescission for home
solicitation, cancellation notice.
6. Liens & Payments – File lien within 90 days, foreclose within 1 year, preliminary notice,
trust fund law, stop notice.
7. Labor Laws – Workers’ comp required, minimum wage, overtime 1.5x over 40 hours,
independent contractor vs employee.
8. Safety & Discipline – NV OSHA, fall protection over 6 feet, grounds for discipline (fraud,
abandonment, no insurance).
9. Unlicensed Contracting – Misdemeanor, fine up to $15,000, no contract enforcement,
invalid liens, owner recovery.
10. Key Statutes – NRS 624 (contractors), NRS 108 (liens), NAC 624, exam logistics (60
questions, 120 min, open-book, 75% passing).
200 MCQs with Rationales – Nevada Contractor CMS Exam
Section 1: Nevada State Contractors Board (NSCB) – Q 1-20
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1. The Nevada State Contractors Board consists of how many members?
a) 5
b) 7
c) 9
d) 11
Correct Answer: b) 7
Rationale: NRS 624.030 specifies seven members: four licensed contractors and three public
members appointed by the Governor.
2. A quorum of the Nevada State Contractors Board requires at least:
a) 3 members
b) 4 members
c) 5 members
d) 6 members
Correct Answer: b) 4 members
Rationale: NRS 624.040 requires four members to constitute a quorum for conducting official
business.
3. The maximum administrative fine the NSCB may impose per violation is:
a) $10,000
b) $25,000
c) $50,000
d) $100,000
Correct Answer: c) $50,000
Rationale: NRS 624.303 allows fines up to $50,000 for certain violations, including unlicensed
contracting.
4. Which classification is NOT a contractor license type in Nevada?
a) Class A – General Engineering
b) Class B – General Building
c) Class C – Specialty
d) Class D – Residential Only
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Correct Answer: d) Class D – Residential Only
Rationale: Nevada uses Class A, B, C, and B-2 (limited to 1-2 family dwellings), but no Class D.
5. The primary purpose of the NSCB is to:
a) Maximize contractor profits
b) Regulate contractors and protect the public
c) Provide free legal advice to contractors
d) Set construction material prices
Correct Answer: b) Regulate contractors and protect the public
Rationale: NRS 624.010 states the board exists to safeguard life, health, and property by
regulating contractors.
6. The NSCB has authority to revoke a license for:
a) Failure to pay subcontractors
b) Abandonment of a project
c) Fraudulent acts
d) All of the above
Correct Answer: d) All of the above
Rationale: NRS 624.300 lists numerous grounds for discipline, including fraud, abandonment,
and non-payment.
7. How often must a Nevada contractor license be renewed?
a) Annually
b) Biennially (every 2 years)
c) Every 3 years
d) Every 5 years
Correct Answer: b) Biennially (every 2 years)
Rationale: NRS 624.260 requires license renewal every two years on the last day of the
licensee's birth month.
8. A licensee must notify the NSCB of an address change within:
a) 10 days
b) 20 days
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c) 30 days
d) 60 days
Correct Answer: c) 30 days
Rationale: NAC 624.270 requires written notification within 30 days of any address change.
9. The NSCB may issue a citation and fine without a formal hearing for:
a) Minor violations
b) Felony convictions only
c) Unlicensed contracting only
d) No violations – hearings always required
Correct Answer: a) Minor violations
Rationale: NRS 624.303 allows the board to issue citations for minor violations with specified
fines.
10. Who appoints the members of the NSCB?
a) The Nevada Legislature
b) The Governor
c) The Contractors Association
d) Popular election
Correct Answer: b) The Governor
Rationale: NRS 624.030 states board members are appointed by the Governor with consent of
the Senate.
11. A contractor's license is valid for work anywhere in:
a) Clark County only
b) Washoe County only
c) The city of license issuance
d) The entire state of Nevada
Correct Answer: d) The entire state of Nevada
Rationale: A Nevada contractor license is valid statewide, not restricted to county or city of
issuance.
Nevada Contractor General Business and Law
(CMS) ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS LATEST UPDATE THIS YEAR
Exam Coverage
1. Nevada State Contractors Board (NSCB) – Structure, powers, fines up to $50,000,
license issuance and discipline.
2. License Classifications – Class A (engineering), Class B (building), Class C (specialty), B-2
(1-2 family), Restricted (≤$7,000).
3. Experience & Application – 4 years for non-restricted, 2 years for restricted, pre-
approval, background check, financial statements.
4. Bonding – Surety bond, bid bond, performance bond, payment bond, restricted bond
minimum $2,000.
5. Contracts – Written required over $2,500, license number, 3-day rescission for home
solicitation, cancellation notice.
6. Liens & Payments – File lien within 90 days, foreclose within 1 year, preliminary notice,
trust fund law, stop notice.
7. Labor Laws – Workers’ comp required, minimum wage, overtime 1.5x over 40 hours,
independent contractor vs employee.
8. Safety & Discipline – NV OSHA, fall protection over 6 feet, grounds for discipline (fraud,
abandonment, no insurance).
9. Unlicensed Contracting – Misdemeanor, fine up to $15,000, no contract enforcement,
invalid liens, owner recovery.
10. Key Statutes – NRS 624 (contractors), NRS 108 (liens), NAC 624, exam logistics (60
questions, 120 min, open-book, 75% passing).
200 MCQs with Rationales – Nevada Contractor CMS Exam
Section 1: Nevada State Contractors Board (NSCB) – Q 1-20
, Page 2 of 53
1. The Nevada State Contractors Board consists of how many members?
a) 5
b) 7
c) 9
d) 11
Correct Answer: b) 7
Rationale: NRS 624.030 specifies seven members: four licensed contractors and three public
members appointed by the Governor.
2. A quorum of the Nevada State Contractors Board requires at least:
a) 3 members
b) 4 members
c) 5 members
d) 6 members
Correct Answer: b) 4 members
Rationale: NRS 624.040 requires four members to constitute a quorum for conducting official
business.
3. The maximum administrative fine the NSCB may impose per violation is:
a) $10,000
b) $25,000
c) $50,000
d) $100,000
Correct Answer: c) $50,000
Rationale: NRS 624.303 allows fines up to $50,000 for certain violations, including unlicensed
contracting.
4. Which classification is NOT a contractor license type in Nevada?
a) Class A – General Engineering
b) Class B – General Building
c) Class C – Specialty
d) Class D – Residential Only
, Page 3 of 53
Correct Answer: d) Class D – Residential Only
Rationale: Nevada uses Class A, B, C, and B-2 (limited to 1-2 family dwellings), but no Class D.
5. The primary purpose of the NSCB is to:
a) Maximize contractor profits
b) Regulate contractors and protect the public
c) Provide free legal advice to contractors
d) Set construction material prices
Correct Answer: b) Regulate contractors and protect the public
Rationale: NRS 624.010 states the board exists to safeguard life, health, and property by
regulating contractors.
6. The NSCB has authority to revoke a license for:
a) Failure to pay subcontractors
b) Abandonment of a project
c) Fraudulent acts
d) All of the above
Correct Answer: d) All of the above
Rationale: NRS 624.300 lists numerous grounds for discipline, including fraud, abandonment,
and non-payment.
7. How often must a Nevada contractor license be renewed?
a) Annually
b) Biennially (every 2 years)
c) Every 3 years
d) Every 5 years
Correct Answer: b) Biennially (every 2 years)
Rationale: NRS 624.260 requires license renewal every two years on the last day of the
licensee's birth month.
8. A licensee must notify the NSCB of an address change within:
a) 10 days
b) 20 days
, Page 4 of 53
c) 30 days
d) 60 days
Correct Answer: c) 30 days
Rationale: NAC 624.270 requires written notification within 30 days of any address change.
9. The NSCB may issue a citation and fine without a formal hearing for:
a) Minor violations
b) Felony convictions only
c) Unlicensed contracting only
d) No violations – hearings always required
Correct Answer: a) Minor violations
Rationale: NRS 624.303 allows the board to issue citations for minor violations with specified
fines.
10. Who appoints the members of the NSCB?
a) The Nevada Legislature
b) The Governor
c) The Contractors Association
d) Popular election
Correct Answer: b) The Governor
Rationale: NRS 624.030 states board members are appointed by the Governor with consent of
the Senate.
11. A contractor's license is valid for work anywhere in:
a) Clark County only
b) Washoe County only
c) The city of license issuance
d) The entire state of Nevada
Correct Answer: d) The entire state of Nevada
Rationale: A Nevada contractor license is valid statewide, not restricted to county or city of
issuance.
