Under NRS 624, what is the minimum net worth requirement for a Class A General Engineering contractor license in Nevada?
Correct Answer
C) $250,000
NRS 624 requires Class A General Engineering contractors to maintain a minimum net worth of $250,000 to demonstrate financial responsibility.
Why This Is the Correct Answer
Option C is correct. NRS 624 establishes financial responsibility requirements for contractor licensing. Class A General Engineering contractors — who perform the largest scale and highest dollar value projects — must demonstrate a minimum net worth of $250,000.
Why the Other Options Are Wrong
Option A: $500,000
$500,000 exceeds the required minimum net worth for Class A. This figure might be confused with bond amounts or net worth requirements for specialty or exceptionally large licensees, but it is not the NRS 624 minimum for Class A.
Option B: $45,000
$45,000 is the minimum net worth requirement for a Class C specialty contractor, not a Class A General Engineering contractor. Mixing up the financial requirements across license classes is a common exam error.
Option D: $100,000
$100,000 is the minimum net worth threshold for a Class B General Building contractor. It falls between the Class C and Class A requirements and should not be confused with the Class A threshold.
Memory Technique
Scale up: C=$45K, B=$100K, A=$250K. Think of the letters in reverse order of the alphabet as the net worth goes up: A is the top class, A = the top net worth ($250K). '250 for Class A, as in A-list projects.'
More Nevada Questions
Under NRS 624, what is the minimum net worth requirement for a Class A General Contractor license in Nevada?
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According to Nevada building codes, which edition of the International Building Code (IBC) is currently adopted for commercial construction?
A contractor receives a Notice of Disciplinary Action from the NSCB. Within how many days can they request a hearing to contest the action?
Which Nevada building code edition is currently adopted for commercial construction in most Nevada jurisdictions?
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A contractor's employee is injured on a Nevada job site. The contractor lacks workers' compensation insurance. What is the potential penalty under NRS 624?
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A Nevada contractor fails to carry required workers' compensation insurance. What penalty can the Nevada Industrial Insurance System impose per day of non-compliance?
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