JV Licenses & Out of State Partners, NV Applications, Bid Limits & Financial Statements

Attending conferences, CSLB Board meetings and other events important to contractors is part of my job. For many contractors seeking contracts and new bid opportunity also takes them out ‘on the road’…

 Q:  We are a CA “B” General Building contracting company and are applying for a new license in the State of Nevada.  We typically do smaller remodeling jobs; we don’t build new homes or buildings.  We submitted our application and requested a bid limit of $50,000.  The Nevada Board sent a letter stating that as “B” contractors we are required to request at least a $200,000 bid limit, and further stated that our financial statement must “support” that bid limit request.

We don’t need a bid limit that high, nor are we sure that our financials “support” a limit that high. My boss suggested I contact you to see if you know of any way around this requirement.  Just to throw in another wrench, we need this license in a hurry and we don’t have time to wait for our accountant to prepare a new financial statement!


A: There is no way around the bid limit requirement for “B” contractors, nor is there any way around the requirement that you must be able to show some equity to support your requested limit. The Nevada Board assumes that most “B” contractors are doing ground-up construction and therefore the majority of their jobs will go over $200,000.

Q:  I represent a construction company Incorporated in Delaware.  They are planning on conducting business in Los Angeles but do not have a CA contractor’s license.  My client would like to know if in place of taking the law and general building exams, he can associate or Joint Venture with an established company that possesses a General contractor’s license?

A:  Your client may only “Joint Venture” with an established company if they themselves have a CA contractor’s license.  By definition, a Joint Venture (JV) consists of two or more entities that are licensed, active and in good standing.  This would mean having someone qualify a license for the out-of-state company by taking the law and trade exams. If you go through this process, there would be no need for the JV.

Q:  I would like more information on getting my Nevada state contractor’s license for remodeling homes.  Other than passing the exams, what obstacles am I likely to encounter during this process.

A:  The Nevada license application runs 20+ pages.  Among the requirements are securing a statement from your bank; providing a detailed financial statement (or one compiled by your CPA); and getting 4 notarized references that attest to your 4 plus years experience in the building trades. Once the application is submitted and reviewed, the State Board will notify you regarding their testing requirements.  After you pass both the business management and trade exams, the Board will notify you regarding the contractors’ bond amount.  This bond is on a sliding scale and is tied to the bid limit you list on your application.