Most remodels end with a punch list, not a dispute. When a job does go wrong, Nevada homeowners have specific options through the Nevada State Contractors Board, including a complaint process and, for some owners, the Residential Recovery Fund. Knowing the steps before you need them helps you keep the right records from the start.
Key takeaways
- Try to resolve problems with the contractor first, in writing.
- You can file a complaint with the Contractors Board within four years after completion.
- The Recovery Fund may help owners of single-family homes who hired a licensed residential contractor.
Step 1: talk to the contractor, then write
The Board advises that if problems occur, you first contact the contractor to try to work them out. Keep notes, notify the contractor of your concerns and consider documenting them in a letter. Any agreements should be in writing, and you should keep copies.
Step 2: document everything
Photograph the problem before anything is repaired. The Board’s Recovery Fund FAQ warns that if work is repaired before a Board investigator validates it, the claim may be difficult to prove, and advises homeowners to fully document the condition of the home with photographs. Keep the contract, change orders, payment records and correspondence together in your How to Set Up a Remodel Project Binder.
Step 3: file a complaint with the Board
If you cannot resolve the problem and believe the law may have been violated, you can file a complaint with the Board. The Board says you can file up to four years after completion of the work. There are forms for complaints against licensed contractors and separate forms for reporting unlicensed contractors, both available online or on paper.
What the Residential Recovery Fund is
The Residential Recovery Fund was created by the Nevada Legislature in 1999. Licensed contractors who do residential work pay into it, and the Board administers it. The Board describes it as offering limited compensation to owners of single-family homes who were damaged by a licensed contractor’s failure to properly perform the work and who have exhausted other means of recovery.
Who may be eligible
| Condition | Eligible | Not eligible |
|---|---|---|
| Contractor | Licensed residential contractor | Unlicensed contractor |
| Home | Single-family residence the owner occupies | Home you do not live in |
| Permit | Contractor obtained it | Claimant obtained any building permit for the project |
| Scope of contract | Within the license classification and monetary limit | May be denied if outside the classification or over the limit |
| Other recovery | Other means pursued first | Amounts recovered elsewhere are deducted |
The Board’s FAQ also says an owner-builder who built the residence is not eligible, and that certain people, such as a licensee’s spouse, cannot file.
Tip: Hiring a licensed contractor and letting the contractor pull the permit are two simple choices at the start of a job that keep the Recovery Fund open to you if something goes wrong.
What the claim needs
- The completed claim form and a notarized verification form.
- Proof of every payment on the contract, such as front and back copies of checks, receipts and bank records.
- The original contract and all change orders, credits and refunds.
- Photographs and a statement explaining how the claim was calculated.
- Bids from three properly licensed contractors to complete or correct the work.
How the process works
Board staff first check eligibility, then investigate. The contractor receives copies of the documents you provide. Validated claims go to a Recovery Fund Committee hearing, with at least 30 days’ notice. You may attend and speak, but you are not required to attend or hire an attorney. A written decision follows the hearing. The Board states the Committee’s decision is final and not subject to judicial review.
What the Fund does not do
The Board does not recommend or select a contractor to make repairs. Awards are generally based on the low bid, and the homeowner hires the contractor of their choice and pays any difference. There is no guarantee of full reimbursement, and attorney’s fees are generally not covered. Upgrades beyond the original contract are not considered.
Liens during a dispute
If a lien is filed against your property during a dispute, the Board’s advice is to consult an attorney. See Mechanic’s Liens and Lien Releases in Nevada for how liens work.
Common mistakes
The most common mistakes are repairing the problem before documenting it, paying in cash without receipts and waiting too long to file. Another is pulling the permit yourself at the contractor’s request, which can make you ineligible for the Fund.
Frequently asked questions
Is my claim public?
Yes. The Board says the claim and the investigation report are public records.
How long does it take?
The Board says the law requires it to act on a complaint within six months, and committee meetings are held about every 60 days.
Can I appeal the award?
No. The Board states the decision is final.
Prevention starts with How to Check a Nevada Contractor License.