4.2 Nevada Residential Contract Requirements & Disclosures (NRS 624.520, 624.600 & 624.970)
Key Takeaways
NRS 624.600 requires a general building contractor to give the owner of a single-family residence the names and license numbers of its subcontractors and of suppliers furnishing $500 or more, a lien notice, and Board informational forms.
NRS 624.520 requires every residential contractor to include the Residential Construction Recovery Fund statement in each contract for qualified services.
Under NRS 624.970, residential improvement contracts must state the contractor's license number and monetary limit, the price, the completion date and a payment schedule, and must limit any deposit to the lesser of $1,000 or 10 percent.
Nevada residential pool and spa contracts over $1,000 must follow NRS 624.940 and NAC 624.6958; a contract that omits the Board's mandatory elements is void and unenforceable against the owner.
Why Residential Contracts Are Regulated
Owners of single-family homes are treated as consumers who need protection. Nevada therefore prescribes what a residential contractor must tell the owner and what the contract must say. Missing a required notice is a ground for discipline (NRS 624.3016(4)–(6)), and some defects make a contract voidable or void.
Disclosures by a General Building Contractor (NRS 624.600)
A general building contractor must provide in writing to the owner of a single-family residence with whom it contracts:
- Subcontractors and Suppliers: The name, license number, business address and telephone number of all subcontractors it has contracted with on the project, and of all persons who furnish material of the value of $500 or more for the project.
- Lien Notice: A notice that those persons may record a notice of lien on the residence and its improvements under NRS 108.226.
- Board Informational Forms: The Board's prescribed forms about contractors (NAC 624.6932) and about mechanics' and materialmen's liens (NAC 624.693).
What the Board's Forms Tell the Owner
- Contractors form (NAC 624.6932): Contractors must be licensed. The Board investigates complaints, and the owner can check a license or file a complaint online or by phone. A contractor must show its license number on all advertising, vehicles, bids and contracts.
- Lien form (NAC 624.693): Anyone who provides work, materials or equipment worth $500 or more may give a "Pre-Lien Notice" or "Notice of Right to Lien," which is not a lien. If unpaid, that person may record a Notice of Lien. Every paid contractor, subcontractor or supplier should give an Unconditional Waiver and Release. The owner should insist on unconditional releases upon final payment from every subcontractor and supplier, and should consider consulting a lawyer.
Since 2025, NRS 624.600 also applies to residential photovoltaic work on qualified multifamily affordable housing.
Recovery Fund Notice (NRS 624.520)
Every residential contractor must notify the owner of its rights regarding the Recovery Fund. This includes a written statement in any agreement or contract for qualified services, substantially in the statutory form headed "RESIDENTIAL CONSTRUCTION RECOVERY FUND." The statement says that payment may be available if the owner is financially damaged by a project on the residence because of certain violations of Nevada law by a licensed contractor, and that the owner may contact the State Contractors Board.
- Fines: Up to $250 for a first violation and $500 for each later violation, deposited in the Recovery Fund.
- Discipline: Failing to give the notice is a ground for discipline (NRS 624.3016(4)).
Mandatory Contract Elements for Residential Improvements (NRS 624.970)
Since October 1, 2023, every contract between a residential contractor and the owner-occupant of a single-family residence for work on a completed residence must contain, in writing (NRS 624.970(2)):
| Element | Requirement |
|---|---|
| (a) Contractor | Name, address, license number and monetary limit |
| (b) Owner and Property | Owner's name and mailing address; property address or legal description |
| (c)–(d) Dates | Date of execution; estimated completion date |
| (e)–(f) Scope and Price | Description of the work; total price including taxes |
| (g) Deposit | Any down payment or deposit, not to exceed $1,000 or 10% of the contract price, whichever is less. The cap does not apply if the contractor has a $100,000 consumer-protection bond on file or has been relieved of the bond requirement under NRS 624.270(5) |
| (h) Notices | Statement that the owner received the NRS 624.520 and 624.600 notices and forms |
| (i) Change Orders | Statement that scope or price changes must be agreed in writing as change orders; a change order is unenforceable unless it sets out all changes in scope and price and the owner accepts it |
| (j) Plans | For new work: plan and scale drawing, specifications, materials, equipment and price. Repair-only contracts are exempt |
| (k) Payment Schedule | Each progress payment in dollars and cents and the stage at which it is earned. Payments may never exceed 100% of the value of work performed, apart from the deposit, unless a payment and performance bond covers the job |
The contract must also:
- Let the owner initial provisions to show they were read.
- Include, near the signatures, a notice that the owner may contact the Board for help understanding the contract, request a payment and performance bond, consult an attorney, and ask for a translated contract if it was explained in another language.
- Be printed in at least 10-point bold type. At signing, the contractor gives the owner copies of everything signed and a signed receipt for any money paid.
Consequences: A contract missing an element other than the deposit term may be modified by the owner to comply, and a reasonable modification binds the contractor. A contract that violates the deposit term is voidable by the owner. Any clause waiving the owner's rights is void, and the contractor must obtain all permits. Pools, spas and residential photovoltaic systems have their own rules.
Residential Pools and Spas (NRS 624.920 – 624.965)
- License: Only a properly licensed person may perform or offer pool or spa work, or consult on it, for a fee (NRS 624.920). The qualified employee or officer must directly supervise and control the work (NRS 624.930).
- Mandatory Elements: A contract with the owner of a single-family residence that omits the Board's mandatory elements is void and unenforceable against the owner (NRS 624.940(1)). A contract over $1,000 must include items such as the parties, dates, description, total price, a deposit not exceeding $1,000 or 10%, whichever is less, a statement that the NRS 624.600 notices were given, a written change-order rule, and a scale drawing with specifications (NRS 624.940(2)).
- Payment Schedule (NAC 624.6964): State each payment in dollars and cents tied to work performed. No stage may be scheduled to take more than 30 days without written agreement. Payments may not exceed 100% of the contracted amount for any stage, and each stage's payment is not due until that stage is complete. Final payment may be required after plastering and final inspection, unless contract equipment, decking or fencing is unfinished.
- Performance Duties (NRS 624.935): After receiving the deposit, start work within 30 days after permits issue unless the owner agrees in writing to longer. Do not stop work for any 30-day period. After each satisfactory payment, give the owner a full and unconditional lien release for that portion before further payment, unless a payment and performance bond or joint control covers the job.
- Penalties (NRS 624.965): Violations are grounds for discipline. A first criminal offense is a misdemeanor with a fine of up to $1,000, and a second is a gross misdemeanor.
Exam Tip: The lesser of $1,000 or 10% deposit cap appears in both NRS 624.940 (pools and spas) and NRS 624.970 (residential improvements). On a $65,000 contract, 10% is $6,500, so the cap is $1,000. On an $8,000 contract, 10% is $800, so the cap is $800.
A licensed pool contractor signs a $65,000 contract to build an in-ground pool and spa for a Las Vegas homeowner. Under NRS 624.940, what is the largest initial down payment the contract may provide for?
$6,500 (10% of the contract price)
$5,000 (a flat statutory maximum)
$1,000 (the lesser of $1,000 or 10%)
$3,250 (5% of the contract price)
Under NRS 624.600, which disclosure must a general building contractor give in writing to the owner of a single-family residence?
The name, license number, address, and phone number of each subcontractor and $500+ supplier, plus a lien notice.
The contractor's federal income tax return for the prior year and a current profit-and-loss statement.
The surety company's financial rating, the bond amount, and the premium the contractor paid for the bond.
A written guarantee that no subcontractor or supplier will ever record a mechanic's lien against the residence.
On October 15, 2026, a residential contractor signs a $40,000 bathroom remodel contract with an owner-occupant and collects a $4,000 deposit. The contractor has no consumer-protection bond and no bond relief. What is the result under NRS 624.970?
The deposit is lawful because it equals exactly 10% of the contract price and the owner agreed in writing.
The deposit exceeds the lesser of $1,000 or 10%, so the owner may void the contract.
The contract is automatically void and the contractor's license is revoked without a hearing.
The deposit is lawful because bathroom remodels are exempt from the NRS 624.970 contract rules.
Sections you finish are checked off in the contents.