Nevada State Contractors Board Business and Law (CMS) Exam Guide: NRS 624 and the PSI Nevada Manual
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The Nevada State Contractors Board Business and Law exam, also called the Contractor Management Survey (CMS), is a 60-question, open-book PSI test. You need 75% to pass. It covers licensing under NRS Chapter 624, finance, lien law, tax and labor law, contracts and safety. This guide covers the format, the fees, the retake limit, how to tab the manual and the NRS 624 numbers worth knowing. Our free practice test has 153 questions, and each one cites its statute.
Nevada CMS Exam at a Glance
- Questions: 60 scored, plus 3 unscored.
- Time: 120 minutes, plus 6 minutes for the unscored questions. The tutorial of up to 15 minutes does not count.
- Passing score: 45 correct (75%).
- Fees: $95 for one portion, or $140 for a trade exam plus the CMS.
- Format: open book, on a computer, at a PSI test center.
- Reference: the Construction Business and Law Manual for Nevada (PSI).
- Retakes: 2-week wait. After a third failure, your application is void.
All of these facts come from the PSI Nevada Contractors Candidate Information Bulletin, updated March 25, 2026. Our mock exam uses 60 questions, 120 minutes and a 75% target. It is an unofficial practice set, not a copy of the PSI exam.
What the Nevada Business and Law Exam Covers
The PSI content outline lists the number of questions for each subject:
- 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 make up 22 of the 60 questions. Our practice bank covers the licensing, enforcement, payment and Recovery Fund parts of NRS Chapter 624. It does not cover the accounting and estimating math, so use the PSI manual for that.
Who Has to Take the Nevada CMS Exam
According to the Board's License Examinations page, each applicant must pass the business and law (CMS) exam and a trade exam for the license classification. The Board sends an exam eligibility letter after your application is filed and staff have verified your experience. You then book with PSI online or by phone at (855) 205-5827. PSI also has test centers outside Nevada.
Nevada CMS Fees, Rescheduling and Retake Rules
- Fees: $95 for one portion. $140 applies only when the second exam is the CMS. Two trade exams cost $95 each.
- Refunds: fees cannot be refunded or transferred, and they expire with your eligibility.
- Cancelling: you keep your fee if PSI gets your notice 2 days before the exam. For a Monday exam, that means by Saturday. Voicemail does not count.
- Missed appointment: arriving late, not bringing a valid photo ID, or cancelling too late means you lose the fee.
- Retakes: wait 2 weeks after a failure. You cannot rebook on the same day you test.
- Third failure: your application becomes void, and you must re-apply with the Board.
How to Tab the PSI Construction Business and Law Manual for Nevada
The bulletin allows highlighting, underlining and indexing before the exam, using permanent tabs only. Temporary tabs such as Post-it notes must come out before you start. Writing in the book is not allowed, and neither are loose or attached papers. A silent, nonprinting, non-programmable calculator is allowed, which you will need for the financial management questions.
Tab the manual to match the PSI outline above, starting with financial management (12 questions) and licensing (10). On test day, answer what you know first and save the lookups for the end.
NRS 624 Licensing Rules on the Nevada Exam
These rules come from NRS Chapter 624 (Nevada Legislature). Each one is a question in our practice test.
- Handyman exemption (624.031): repair work under $1,000, including labor and materials, is exempt. The exemption does not cover plumbing, electrical, refrigeration, heating or air-conditioning work, or work that needs a permit.
- Owner-builders (624.031): may build for their own use, but must apply to the Board for the exemption. Selling within 1 year after completion creates a presumption that the house was built for sale.
- Branches (624.215): general engineering, general building and specialty contracting.
- Monetary limit (624.220): this is the most you can contract for on one site for one client. Ask for a single-project increase at least 5 working days before bidding.
- Bond (624.270): between $1,000 and $500,000, by surety bond or cash deposit.
- Restricted license (624.244): needs 2 years of experience and a bond of at least $2,000, and is valid for 2 years.
- Renewal (624.283): licenses last 2 years and are automatically suspended if not renewed. A licensee in good standing may reinstate within 6 months.
- Inactive status (624.282): no bond is needed, and the status is good for 8 years.
- Advertising (624.720): every ad must show the company name and license number.
Discipline, Fines and Unlicensed Contracting Penalties Under NRS 624
- Fines (624.300): the general maximum is $10,000 per violation. For violations such as misusing a license, it is up to $50,000.
- Records (624.3013): keep contracts and receipts for at least 3 years after the project is complete.
- Complaint deadlines (624.331): a complaint must be filed within 4 years of the act. The Board must start discipline, or dismiss the complaint, within 2 years of filing.
- Cease and desist (624.212): you have 48 hours to protest.
- Unlicensed contracting (624.750): a first offense is a misdemeanor with a $1,000 to $4,000 fine. A second offense is a gross misdemeanor with a $4,000 to $10,000 fine. A third offense is a category E felony.
- Void contracts (624.700): a bid or contract made without a license is void from the start.
Prompt Payment and the Residential Recovery Fund in Nevada
- Owner payments (624.609): without a payment schedule, the owner must pay within 21 days of the request. Retention is capped at 5%. Notice of any withholding is due on or before the payment date.
- Recovery Fund (624.510): pays up to $40,000 per injured person. The total for all claims against one contractor is capped at the lesser of $750,000 or 20% of the account. An owner who pulled their own permit cannot claim.
A 4-Week Study Plan for the Nevada CMS Exam
- Week 1: licensing and NRS 624. Take our practice test in study mode until you reach 85% or higher.
- Week 2: financial management and estimating. Practise ratios, markup versus margin, and depreciation with your calculator.
- Week 3: tax, labor, contracts, lien law and safety. Tab those chapters of the PSI manual.
- Week 4: two timed 60-question mock exams. Aim for 80% or higher to give yourself margin above 75%.
PSI also sells official practice exams on its Nevada contractors page. You can take them any number of times, but you pay each time. Studying for another state too? Compare our Arizona and Utah guides.
Nevada Contractor Exam FAQ
Frequently Asked Questions
How many questions are on the Nevada Business and Law (CMS) exam?
60 scored questions in 120 minutes, plus 3 unscored questions with 6 extra minutes. That is from the PSI Nevada Candidate Information Bulletin updated March 25, 2026.
What score do I need to pass the Nevada CMS exam?
45 correct out of 60, which is 75%. That is higher than the 70% many other states use.
Is the Nevada Business and Law exam open book?
Yes. The bulletin says the exam is open book. The allowed reference is the Construction Business and Law Manual for Nevada, published by PSI. You bring your own copy.
How much does the Nevada contractor exam cost?
PSI charges $95 for one exam portion, or $140 for two portions when the second one is the CMS. Two trade exams cost $95 each. Registration fees cannot be refunded or transferred, and they expire on the same date as your eligibility.
How many times can I retake the Nevada contractor exam?
You must wait 2 weeks after a failed attempt, and you pay the fee again each time. If you fail a third time, your application becomes void and you must re-apply with the Nevada State Contractors Board.
What exams does a Nevada contractor license require?
The Board says each applicant must pass the business and law (CMS) exam and a trade exam for the license classification. You get an eligibility letter after your application is filed and staff verify your experience.
Can I take the Nevada CMS exam in Spanish?
Yes. PSI lists NV CMS - Spanish, along with some trade exams. Call PSI at (855) 205-5827, or email [email protected], to switch languages.
What tabs and markings can I use in the manual?
You may highlight, underline and index before the exam, with permanent tabs only. Post-it notes and other temporary tabs must be removed. You may not write in the book, and loose papers will be confiscated.
Can I bring a calculator?
Yes. A silent, nonprinting, non-programmable calculator is allowed.
How hard is the Nevada CMS exam?
The 75% pass mark and 12 financial management questions make it harder than many state law exams. You have about 2 minutes per question. Know the NRS 624 numbers by heart and practise the finance math before test day.
This is an independent study guide, not affiliated with the Nevada State Contractors Board or PSI. Check current details in your eligibility letter and the latest PSI bulletin.