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NCSB Warns Contractors To Be On Look Out for Out-of-State Solar Manufacturers Looking for Installation Services

Today, the Nevada State Contractors Board (NSCB) issued an Industry Bulletin confirming that, in recent months, it “has been seeing an increase in the number of out-of-state solar manufacturers entering into contracts with licensed Nevada contractors to perform solar installation services for Nevada residents.” It noted that many of these out-of-state manufacturers do not possess a Nevada contractor’s license and the Nevada contractors performing installation services for such businesses are being disciplined by NSCB for aiding and abetting an unlicensed contractor.

The provisions governing disciplinary action that may be initiated by the NCSB are set forth starting at Section 624.295 of Nevada’s contractors’ licensing law, Chapter 624 of Nevada’s Revised Code, §§ 624.005, et seq., (the “Licensing Law”), and include “[k]nowingly bidding to contract or entering into a contract with a contractor for work in excess of his or her limit or beyond the scope of his or her license” and “[k]nowingly entering into a contract with a contractor while that contractor is not licensed.” Section 624.341 of the Licensing Law authorizes the NCSB to issue an administrative Citation, which may include an order to pay an administrative fine not to exceed $50,000, except as otherwise limited by Subsection 1 of Section 624.300 of the Licensing Law.

Section 624.02 of the Licensing Law broadly defines “contractor” to include, but not be limited to, “any person …. acting solely in a professional capacity, who in any capacity other than as the employee of another with wages as the sole compensation, undertakes to, offers to undertake to, purports to have the capacity to undertake to, or submits a bid to, or does himself or herself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith….” A “contractor” includes a subcontractor or specialty contractor, but it does not include anyone who merely furnishes materials or supplies without fabricating them into, or consuming them in the performance of, the work of a contractor; Nevada Administrative Code § 624.540 governs the classification C-37 license for a solar contractor and related subclassifications, and “[a] person who holds a classification C-37 license may design, fabricate and install systems for the collection of solar energy to heat and cool water, air and chemicals.” Section 624.031 of the Licensing Law sets forth various exemptions from the licensure requirement.

The Nevada State Contractors Board Licensing Overview provides guidance on who is required to obtain and maintain a Nevada contractor’s license.