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A Class C contractor wants to bid on a $180,000 project. What is required under NRS 624?

Correct Answer

B) They must upgrade to Class B license

Class C contractors are limited to $100,000 projects. A $180,000 project requires a Class B license.

Answer Options
A
They can bid as-is since it's under $200,000
B
They must upgrade to Class B license
C
They need special NSCB approval
D
They must partner with a Class A contractor

Why This Is the Correct Answer

Under NRS 624, Class C contractors are limited to projects with a value of $100,000 or less (including labor and materials). A $180,000 project exceeds this limit, so the contractor must upgrade to a Class B license, which allows projects up to $1,000,000.

Why the Other Options Are Wrong

Option A: They can bid as-is since it's under $200,000

There is no $200,000 threshold for Class C contractors. The actual limit is $100,000. Assuming any amount under $200,000 is permissible for a Class C contractor is factually incorrect under NRS 624.

Option C: They need special NSCB approval

Special NSCB approval is not a mechanism that allows a Class C contractor to exceed their monetary limit on a case-by-case basis. The license classification system is the controlling authority, and the appropriate path is to obtain the correct license class.

Option D: They must partner with a Class A contractor

Partnering with a Class A contractor does not automatically authorize a Class C contractor to take on work beyond their license limit. Each contractor must hold the appropriate license for the work they are performing and contracting for.

Memory Technique

Class C = $100K cap. Class B = $1M cap. Class A = no cap. Think C-B-A as climbing levels: each class unlocks bigger projects. $180K > $100K β†’ must climb from C to B.

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