Bidding on a Home Project? Don’t Skip This Important Step

Nevada Home Project Contracts: The Clause You Can’t Ignore

When you sign a contract directly with a homeowner for residential work, Nevada law requires you to include a notice about the Residential Construction Recovery Fund. This fund helps homeowners recover financial losses caused by certain violations by licensed contractors.

This requirement comes from Nevada Revised Statutes (NRS) 624.520, and it’s all about protecting homeowners and keeping contractors compliant. Let’s break it down in plain English.

Who Needs to Include This Clause?

Any Nevada licensed contractor working directly for a homeowner must include this notice. That means:

• Remodelers
• Electricians
• Plumbers
• Roofers
• Flooring installers
• Specialty trades

Why Compliance With NRS 624.520 Matters

Leaving this notice out can lead to fines from the Nevada State Contractors Board:

• First offense: Up to $100
• Second or later offenses: Up to $250

What the Contract Clause Must Say

Residential Construction Recovery Fund Notice

Payment may be available from the Residential Construction Recovery Fund if you incur financial damages because of this project, including construction, remodeling, repair, or other improvements to your residence, and those damages result from specified violations of Nevada law by a licensed contractor.

Your rights under NRS 624.400 – 624.560 may allow you to file a claim with the Fund. To obtain information or file a claim, contact the Nevada State Contractors Board.

Homeowner reading the contract details before signing.

How You Stay Compliant and Out of Trouble

1. Add this clause to every homeowner contract.
2. Train your team so they know why it matters.
3. Double-check your contract template before sending bids or signing agreements.
4. Perform and annual contract review with your attorney.

Bottom Line