How Much Deposit Can a Nevada Contractor Ask For?
On an owner-occupied home, the law puts a number on it, and the number is smaller than most people expect.
Most advice on this question is vague on purpose. You will read that a third up front is normal somewhere, that half is a warning sign, and that you should trust your instincts. In Nevada there is a statute instead.
Assembly Bill 39 took effect on 1 October 2023 and added NRS 624.970 to the contractors chapter. Among other things it fixes the maximum deposit a residential contractor may take before work starts.
What NRS 624.970 says about money up front
The cap
The initial down payment or deposit may not exceed $1,000 or 10 percent of the aggregate contract price, whichever is less. On a $60,000 kitchen, 10 percent would be $6,000, so the lesser figure applies and the deposit is capped at $1,000.
Who it protects
Contracts for improvements to a single-family residence occupied by its owner. It covers remodeling, repairs and improvements rather than new construction or multi-family work.
The one exception
A contractor who has filed a consumer protection bond of $100,000 with the Nevada State Contractors Board, in addition to the ordinary license bond, is not held to the cap. Some larger firms carry one. If a contractor asks for more, that bond is the thing to ask about.
It is not the only requirement
The same statute requires a written contract carrying the license number and monetary limit, a payment schedule tied to identifiable stages, and written change orders for any alteration to the scope or the price.
What this does not mean
It does not mean a contractor is only ever allowed $1,000 of your money before the job is finished. Progress payments tied to real stages are normal, expected and how everybody works. The cap applies to the deposit taken before work starts, not to the schedule that follows it.
It also does not mean a large deposit request is proof of dishonesty. It may mean the firm carries the consumer protection bond. It may mean they work mostly on new construction and have not caught up with a rule that changed. Ask which it is. An answer that is straightforward is reassuring, and an answer that gets irritated tells you something.
Where it genuinely helps is that it converts a judgment call into a checkable fact. You no longer have to decide whether a request feels excessive. You can read the number, read the statute, and ask a direct question. The full chapter is published by the legislature at NRS Chapter 624.
Where your money should sit while work goes on
The same statute requires the contract to carry a payment schedule showing dollar amounts against stages of construction, which means the schedule is not a courtesy you have to ask for. It should already be on the page you are being handed.
What that schedule is protecting is your position rather than your budget. If the money paid runs well ahead of the value of what has been built, your leverage is gone at the moment you are most likely to need it. Keeping a meaningful final payment until the punch list is finished is the most useful line in any contract, and the one most often given away by people trying to be agreeable.
Material deposits are a fair exception worth understanding. Custom cabinets and stone are ordered specifically for you and the supplier wants paying, so a payment tied to that order is legitimate. What makes it legitimate is that it is tied to a named order with a documented cost rather than to a date. We set this out on paper before anything starts on a general contracting job, and if the worst happens there is also the Nevada Residential Recovery Fund behind you.
Deposits and payment terms in Nevada
What is the maximum deposit a Nevada contractor can take?
On an owner-occupied single-family residential improvement, $1,000 or 10 percent of the contract price, whichever is less. For most remodels of any size that means $1,000.
Does the cap apply to new home construction?
No. NRS 624.970 is aimed at improvements to an existing single-family residence occupied by its owner. New construction and multi-family projects sit outside it.
What if a contractor asks for 30 percent up front?
Ask whether they hold the $100,000 consumer protection bond that exempts them. If they do, the request is lawful. If they do not, and the property is your own home, the request does not comply.
Is it legal to pay a large deposit if I want to?
The obligation sits on the contractor rather than on you, so this is not something you can get in trouble for. The protection exists whether or not you invoke it, and there is rarely a good reason to give it up.
Do change orders have to be in writing?
Yes. The same statute requires alterations to the scope or the price to be recorded in a written change order, which is a considerable improvement on remembering a conversation from six weeks ago.
What should the contract itself contain?
The contractor name, address, license number and monetary limit, your details and the property address, the start and estimated completion dates, a description of the work, the total price, and a payment schedule tied to stages. You should be handed a signed copy and a receipt for anything you pay.
Want someone to look at it?
Describe what you are seeing, or send a photograph. We will tell you whether it is cosmetic or structural, and we will say so plainly when the answer is that you need a different trade.
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