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Nevada · Contractor Law & BusinessNevada Construction Business & Law Practice Test 2026 (CMS Exam)
To get a Nevada contractor's license, your qualifying individual has to pass two exams: the trade exam for your classification and the general business and law exam, which PSI calls the Contractor Management Survey (CMS). This page explains how the CMS works: format, fees, scheduling, the content outline, and how to study for an open-book test built on Nevada statutes and federal employer rules.
ExamCleared is an independent practice test. We are not affiliated with the Nevada State Contractors Board (NSCB) or PSI Services LLC. Our bank has 150 original questions written from NRS/NAC 624, the lien law in NRS 108, IRS publications, OSHA rules and other public sources. It covers the business and law exam only, not your trade exam. Access is a one-time payment with no subscription: $39 for 60 days or $59 for 120 days.
- Questions
- 63 (60 scored + 3 non-scored)
- Time
- 120 minutes + 6 minutes for the non-scored items
- To pass
- 45 correct out of 60 (75%)
- Exam fee
- $95 PSI exam fee ($140 for trade + CMS together); $300 NSCB application fee
- Required course
- None required
Free Nevada construction business and law practice test questions
Five sample questions from the bank — open each answer to see the explanation and the legal source. Take the free 10-question test to practice with a timer and a score.
1. A contractor filed an accurate income tax return with no fraud and no large omission of income. Generally, how long is the period of limitations, which tells the contractor how long to keep the records that support the return?
- 2 years
- 6 years
- 7 years
- 3 years
Show answer
Answer: D. 3 years
Records that support income or deductions should be kept until the period of limitations runs out. In the general case (owing additional tax, with no omission over 25%, fraud or failure to file), that period is 3 years.
Source: IRS Pub. 583 – How Long To Keep Records, Table 3. Period of Limitations · verified 2026-11-07
2. Under NAC 624.600(2), the Board will waive the examination for a qualified employee who has passed which kind of exam (with the required application documentation)?
- Any contractor licensing exam given by a Nevada city or county building department for a local business license
- The final exam of an OSHA 30-hour construction safety course taken through an authorized outreach trainer
- A manufacturer's product-installation certification exam taken within the 15 years before the application
- An exam accredited by the National Association of State Contractors Licensing Agencies that the Board finds substantially equivalent
Show answer
Answer: D. An exam accredited by the National Association of State Contractors Licensing Agencies that the Board finds substantially equivalent
The Board will waive the exam if the qualifier passed an exam offered by an endorsing state and approved by the Board, or a NASCLA-accredited exam that the Board finds substantially equivalent. The application must include proof, such as the endorsing state's verification or the NASCLA transcript.
Source: NAC 624.600(2)(a)(2) · verified 2026-11-07
3. A Nevada local government plans to contract out a public work with an estimated cost of $60,000. Under NRS 338.13862, from how many properly licensed contractors must it solicit bids at minimum?
- At least three
- At least one
- At least two
- At least five
Show answer
Answer: A. At least three
For public works estimated at more than $25,000 but not more than $100,000, the State or local government must solicit bids from at least three licensed contractors. For $25,000 or less, one bid is enough.
Source: NRS 338.13862(1)(a) · verified 2026-11-07
4. A subcontract has a "pay-if-paid" clause. The subcontractor submits a payment request on March 10, and the general contractor is never paid by the owner. Under NRS 624.626, if the subcontractor is still unpaid after what date may it (with proper 10-day notice) stop work?
- May 9
- April 24
- April 9
- June 8
Show answer
Answer: A. May 9
Even with a pay-if-paid clause, the subcontractor may stop work if not paid within 45 days after the 25th day of the month in which it submitted the request. March 25 + 45 days = May 9.
Source: NRS 624.626(1)(b) · verified 2026-11-07
5. A contractor makes a required federal employment tax deposit 9 calendar days after its due date. What failure-to-deposit penalty rate applies to the late amount?
- 5%
- 2%
- 10%
- 15%
Show answer
Answer: A. 5%
The penalty is 2% for deposits made 1 to 5 days late and 5% for deposits made 6 to 15 days late. A deposit made 9 days late falls in the 5% tier.
Source: IRS Pub. 15 (2026), sec. 11 – Deposit Penalties · verified 2026-11-07
What the Nevada contractor business and law exam is and who takes it
The NSCB says Nevada requires each applicant to pass a general business and law (CMS) exam and a trade exam for the license classification they applied for. The person who sits the exams is the business's qualifying individual, who can be an owner, officer, member, manager or employee of the company. The license is issued to the business, not to the qualifier.
PSI Services LLC runs the exam for the Board. The CMS covers the business side of contracting in Nevada: licensing rules, estimating and bidding, lien law, financial management, taxes, labor law, project management, contracts, risk management, and environmental and safety rules.
In some cases the Board waives the trade exam, for example licensure by endorsement or a NASCLA Accredited General Building Exam for certain classifications. Official sources do not describe a general CMS waiver, so plan on taking the CMS. The new B-7 restricted license also requires the Business and Law (CMS) exam.
Nevada CMS exam format: questions, time, passing score, open book
- Questions: 60 scored multiple-choice items plus 3 non-scored pretest items. The non-scored items do not count toward your score, but they do use exam time.
- Time: 120 minutes, plus 6 minutes for the non-scored items. A tutorial of up to 15 minutes before the exam does not count against your time.
- Passing score: 45 correct (75%).
- Open book: the only reference allowed is the Construction Business and Law Manual for Nevada (PSI). You may highlight, underline and add permanent tabs ahead of time. You may not write in it, and Post-it notes and loose papers are not allowed.
- Calculator: a silent, nonprinting, non-programmable calculator is allowed.
- Delivery: on a computer at a PSI test center, in English or Spanish. You get your score right after you finish.
Our timed full-length mode copies this format (60 scored questions in 120 minutes), so you can practice your pacing before test day.
Fees and how to register and schedule with PSI
- Apply to the NSCB. Send the New License Application with the nonrefundable $300 application fee. First you will need a Nevada State Business License (Nevada Business ID).
- Wait for your eligibility notice. After your application is filed and staff verify your experience, the Board sends an Examination Eligibility form with a Candidate ID. You cannot schedule an exam before that.
- Book with PSI online at test-takers.psiexams.com/nvcon or by phone at (855) 205-5827. The PSI fee is $95 for one exam portion or $140 for two portions when the second one is the CMS. Registration fees are not refundable or transferable.
- Pick a location. Nevada test centers are in Las Vegas, Reno and Elko, and PSI sites in other states can also be used.
Under NAC 624.600(4), qualifiers have 6 months from the date the application is submitted to finish all testing. To cancel or reschedule without losing your fee, PSI must receive your notice 2 days before the exam date.
Prerequisites for a Nevada contractor's license
- No education requirement. The NSCB states you do not have to meet any education requirements, and no pre-licensing course is required for a standard license. The Board offers a free Business Assistance Program.
- Experience: the trade qualifier needs at least four full years of experience as a journeyman, supervising employee or contractor in the requested classification, within the 15 years before applying. Accredited training can count for up to 3 of those years.
- Financial statement: required at every monetary limit. The type of statement (self-prepared, CPA-compiled, reviewed or audited) depends on the limit you request.
- Bond: the Board sets the license bond between $1,000 and $500,000. You can use a surety bond or a cash deposit.
- Background check: everyone listed on the application submits fingerprints for a state and FBI criminal history check.
The B-7 restricted license has its own rule: applicants must complete a business counseling or similar class set by the Board. If you take one, use this practice test alongside it, not instead of it.
What topics are tested on the Nevada CMS exam
PSI's official content outline lists how many of the 60 scored items come from each area:
- Financial Management: 12
- Licensing: 10
- Estimating and Bidding: 7
- Contracts: 6
- Tax Laws: 5
- Labor Laws: 5
- Environmental and Safety: 5
- Risk Management: 4
- Lien Law: 3
- Project Management: 3
Financial management and licensing together make up 22 of the 60 scored items. Expect math such as current ratio, working capital, markup vs. margin and break-even, as well as NRS 624 rules on monetary limits, bonds, advertising and discipline. Our bank uses the same weights. Each question has an explanation and a citation to the statute or official source, with the date we verified it.
Study tips for the NSCB business and law exam
- Tab the manual before test day. You can't write in it during the exam, but you can highlight it and add permanent tabs in advance. Tab the sections that hold numbers you'll need to look up: NRS 624 licensing and bond rules, the NRS 108 lien deadlines, payroll tax deposit rules and OSHA recordkeeping.
- Learn the math so you don't have to look it up. Financial management is the biggest area, and ratio, markup and job-cost questions take time if you have to search the book for formulas.
- Watch for look-alike numbers. Lien law, wage law and licensing all use deadlines and dollar amounts that are easy to mix up, such as days to give notice vs. days to record. Read every answer choice before you pick one.
- Pace yourself. You have about 2 minutes per question. Answer what you know first and look up only what you have to.
- Statutes take priority. PSI's bulletin says that when a reference text conflicts with a code, law or regulation, the law prevails and questions are based on the law.
- Start free. You can try 10 questions without an account. Paid plans come with a 7-day money-back guarantee.
After the exam: results, retakes and licensing
Your score appears as soon as you finish. If you pass, PSI sends your results directly to the Board. If you fail, you get a diagnostic report showing your strengths and weaknesses by area. You must wait 2 weeks before retaking, and you have three attempts. If you fail a third time, your application becomes void under NAC 624.600(3), and you can reapply with a new application and fee 30 days after your last exam.
Once you've passed both exams, the Board finishes reviewing your application. After the license is approved, the Board tells you the bond amount, which you must post before the license is issued.
Pricing
Practice free with 10 questions. Full access is a one-time payment — no subscription, no auto-renewal, 7-day money-back guarantee.
Full access unlocks all 150 questions with explanations and sources, practice by topic, a timed full-length practice exam and your results by topic. No account is needed: after checkout you get a personal access code — save it to use your access on your other devices. Your access period starts immediately after purchase.
Frequently asked questions
Is the Nevada business and law (CMS) exam open book?
Yes. You may bring the Construction Business and Law Manual for Nevada (PSI). You can highlight it and add permanent tabs ahead of time, but you may not write in it.
How many questions are on the Nevada CMS exam, and what is the passing score?
There are 60 scored questions plus 3 non-scored questions. You need 45 correct (75%) to pass.
How long is the exam?
You get 120 minutes, plus 6 minutes for the non-scored items. The tutorial of up to 15 minutes does not count against your exam time.
How much does the Nevada contractor business and law exam cost?
PSI charges $95 for one exam portion, or $140 for two portions when the second one is the CMS. The $300 NSCB application fee is separate and nonrefundable.
Do I need to take a pre-licensing course?
Not for a standard license. The NSCB says there is no education requirement. The B-7 restricted license does require a business counseling or similar class.
What happens if I fail?
You must wait 2 weeks before retaking, and you get three attempts. After a third failure the application becomes void, and you can reapply after 30 days.
Can I take the exam in Spanish?
Yes. PSI offers the NV CMS in Spanish. Call (855) 205-5827 or email PSI to switch from English.
Are these NSCB exam questions?
No. Our questions are original practice items written from public statutes and official guidance. We are not affiliated with the NSCB or PSI.
Is there a free Nevada construction business and law practice test?
Yes. The first 10 questions are free, with no account or email needed. Full access to all 150 questions, practice by topic and the timed full-length exam starts at $39 as a one-time payment.
Is the Nevada business and law exam hard?
It depends on your preparation. To pass you need 45 correct out of 60 (75%). The most reliable way to check is a timed full-length practice exam: ours has 60 questions and is scored against the official passing standard, and your results by topic show which areas still need work.
Related practice tests
Sources
- https://test-takers.psiexams.com/api/content/bulletin/296 — 60 scored items, 45 to pass (75%), 120 minutes, 3 non-scored items with 6 minutes
- https://www.nvcontractorsboard.com/licensing/license-requirements/ — Three attempts; reapply after 30 days; NAC 624.600(3)
- https://www.nvcontractorsboard.com/licensing/license-examinations/ — Both CMS and trade exam required
- https://www.nvcontractorsboard.com/wp-content/uploads/2026/06/New-License-Application.pdf — $300 nonrefundable application fee
ExamCleared is independent and not affiliated with Nevada State Contractors Board (NSCB) / PSI Services LLC (exam vendor). Our questions are original practice questions written from public law and official materials — not actual exam questions. Confirm current requirements with the official agency before you register.