Nevada Undercover Operation Opens 42 Criminal Cases. In Nevada, the Bid Itself Counts

From October 12 to 23, 2026, the Nevada State Contractors Board (NSCB) ran a statewide undercover operation. It was part of a national effort coordinated by the National Association of State Contractors Licensing Agencies (NASCLA). Twelve unlicensed contractors offered bids on decoy jobs, and the board's wider enforcement work during the operation resulted in 42 criminal cases.

This article covers what the board reported and what Nevada law says about bidding and advertising without a license. It also covers the penalties in the statute, and what the operation means for licensed contractors and for companies that want to work in Nevada. For the full picture of how the state licenses contractors, start with the Nevada contractor license page.

At a glance

• Who: the Nevada State Contractors Board, as part of a national effort coordinated by NASCLA.
• When: October 12 to 23, 2026. Results reported October 26.
• Undercover work: four operations, with a residential property and a commercial property as decoys. Twelve unlicensed contractors bid, from $6,000 to $100,000.
• Field work: 45 unannounced job site visits statewide and 406 contractor license details verified.
• Results, all efforts together: 42 criminal cases, 24 cease and desist orders, 15 administrative citations and 12 violation letters.
• The law: under NRS 624.700, submitting a bid on a Nevada job without an active license is unlawful, not only doing the work.

What the board found

The board conducted four undercover operations, using a residential property and a commercial property as decoys. Twelve unlicensed contractors offered bids ranging from $6,000 to $100,000. The work they bid on covered garage conversions, painting, drywall, plumbing, electrical work, flooring, framing, heating and air conditioning, and signage.

Beyond the undercover operations, board staff made 45 unannounced job site visits statewide and verified 406 contractor license details. Those efforts together resulted in 42 criminal cases, 24 cease and desist orders, 15 administrative citations and 12 violation letters. The reports name no contractor and describe no arrests.

Dan Whitmarsh, the board's executive officer, said: "We are pleased to see the same initiatives taking place across the country as we unite to send a clear message that adherence to the construction laws of our respective states is taken seriously and serve to safeguard the public from becoming financially harmed when engaging in construction projects."

In Nevada, the bid itself is unlawful without a license

Section 624.700(1) of the Nevada Revised Statutes makes it unlawful to engage in the business or act in the capacity of a contractor within the state without an active license. It is equally unlawful to submit a bid on a job situated within the state without one. The exception is a person exempt under NRS 624.031.

The twelve contractors in the undercover operations were identified by the bids they offered. Under Nevada law, no work has to start for a bid to be a violation.

The same section says a bid submitted or a contract entered into in violation of that subsection "shall be deemed void ab initio," which means void from the start. A person convicted under it may also be required to pay court and prosecution costs, the board's reasonable investigation costs, and damages the person caused by the violation, up to the amount of the person's gain from it.

Advertising without a license

Section 624.720 covers advertising. It is unlawful to advertise as a contractor without a license in the appropriate classification. It is also unlawful to advertise construction work using a license number that does not belong to a valid license issued to that person.

For licensed contractors, the same section sets a rule worth checking against every ad you run: all advertising by a licensed contractor must include the name of the contractor's company and the license number.

The penalties in the statute

Section 624.750(2) sets the criminal penalties for violating NRS 624.700(1) or 624.720, unless a greater penalty applies under a specific statute:

• First offense: a misdemeanor, with a fine of $1,000 to $4,000, and up to 6 months in county jail.
• Second offense: a gross misdemeanor, with a fine of $4,000 to $10,000, and up to 364 days in county jail.
• Third or later offense: a category E felony, with a fine of $10,000 to $20,000, and 1 to 4 years in state prison.

For a violation of NRS 624.700(1), section 624.750(3) lets the maximum fine be raised by up to 10 percent of the value of any contract if the person started work or received money on it. Separately, section 624.710 lets the board impose an administrative fine of $1,000 to $50,000 for each violation.

Under NRS 624.700(2), district attorneys prosecute violations of that section in their counties, and the Attorney General prosecutes them at the board's request. How any one case is charged is up to prosecutors.

What homeowners are being told

The board's advice to consumers planning home improvement work:

• Check a contractor's license through the board's website, its mobile app, or by calling the office.
• Get at least three bids and review the contract terms before signing.
• Be cautious of contractors who demand cash or large deposits before work begins, refuse to provide a written contract, show up uninvited, or use aggressive or misleading sales tactics.

Consumers who hire licensed contractors have four years from the start of a project to file a complaint with the board. They may be eligible to seek up to $40,000 in damages through the Residential Recovery Fund. The board's home improvement contract checklist is at nscb.nv.gov.

That advice favors licensed contractors. A license that checks out and a written contract are what homeowners are being told to look for.

For companies that want to work in Nevada

Nevada issues the contractor license to the business. The business is qualified through a bona fide member or employee who supervises the company's work, under classification A, B or C. Every applicant passes the Business and Law exam plus a trade exam for the classification, and applicants generally need at least 4 years of experience within the last 10 years. The Nevada contractor license page covers the classifications, monetary limits, financial statements and the rules for replacing a qualifier.

An owner with the experience can qualify the company personally. A company whose owner does not yet have the experience or the exams can be qualified by a licensed qualifying agent who is a real employee of the company. Contractor qualifier services explains how The Licensing Company helps with that.

Frequently asked questions

Is it illegal to bid on a Nevada job without a contractor's license? Under NRS 624.700(1), submitting a bid on a job situated in Nevada without an active license is unlawful, unless the person is exempt under NRS 624.031.

What happens to a contract signed without a Nevada license? NRS 624.700(4) says a bid submitted or a contract entered into in violation of subsection 1 is deemed void ab initio, meaning void from the start.

Do licensed Nevada contractors have to put their license number in their ads? Yes. NRS 624.720 says all advertising by a licensed contractor must include the company name and the license number.

How do homeowners check a Nevada contractor's license? Through the Nevada State Contractors Board's website at nscb.nv.gov, its mobile app, or by calling the board's office.

Was this only happening in Nevada? The board ran its operation as part of a national effort coordinated by NASCLA, and its executive officer said the board is pleased to see "the same initiatives taking place across the country."

This article is general education, not legal advice. The Nevada State Contractors Board or a Nevada construction attorney can confirm how the law applies to a specific job.

Marshall Schofield, one of the nation's leading contractor exam prep instructors, has helped thousands upon thousands of contractors get licensed. Jeremiah Jaskulski is a licensed contractor who has lived the licensing process across multiple states. Together they founded The Licensing Company, and they help contractors get licensed the right way in Nevada and nationwide. Sources: Nevada State Contractors Board news release, October 26, 2026, 2 News Nevada, October 26, 2026, KSNV News 3, October 27, 2026, and NRS chapter 624 (sections 624.700, 624.710, 624.720 and 624.750).