Which classification of Nevada contractor license is required to perform work valued at $2,500,000?
Correct Answer
D) Class A
Class A licenses are required for projects exceeding $2,000,000 in Nevada, making Class A necessary for a $2,500,000 project.
Why This Is the Correct Answer
Nevada's Class A license is required for projects exceeding $2,000,000. Since $2,500,000 is above the $2,000,000 threshold, a Class A license is mandatory. Class A is the highest classification, allowing unlimited project values.
Why the Other Options Are Wrong
Option A: Class B
Class B licenses in Nevada cover projects up to $2,000,000. A $2,500,000 project exceeds the Class B limit, so Class B is insufficient for this project.
Option B: Class C
Class C licenses are for smaller specialty work and have a lower project value limit than Class B. A $2,500,000 project is well beyond the Class C scope.
Option C: Specialty Class
Specialty Class licenses in Nevada are for specific trades (electrical, plumbing, HVAC, etc.) and are not classified by project dollar amount in the same way as A/B/C. A specialty license alone would not authorize general contracting at this value.
Memory Technique
Class A = Above $2 million. 'A' for 'Above.' If the project amount has more than 6 digits and exceeds $2M, you need the 'A' team — Class A license.
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A Nevada contractor's bond is in the amount of $50,000. The contractor defaults on three separate projects with damages of $25,000, $18,000, and $12,000 respectively. What is the maximum total amount that can be recovered from the bond?
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