Know Your Responsibilities As An Owner-Builder

Who Is An Owner-Builder?

An owner-builder is a person who owns the property and acts as their own general contractor, and either does the work themselves, or hires licensed subcontractors on the project. An owner-builder is either building or improving his or her residential structure on the property for his or her own occupancy and does not intend to sell or lease the residence within one (1) year. An owner of property who requests an exemption pursuant to NRS 624.031(5) must apply to the Nevada State Contractors Board for an exemption.

Should I Hire A Consultant To Oversee The Job?

Consultants who contract to direct a project and supervise workers must have a state contractor’s license. Consultants do not take over the legal responsibility for the job. The homeowner still has all responsibility. The NSCB urges you to only hire licensed contractors to perform work on your property.

How Do I Know If My Contractor Is Licensed For The Project?

By law, anyone who contracts for or bids on a construction project valued at $500 or more (total labor and materials) must be licensed by the NSCB.

Ask to see the contractor’s pocket license ID card.

Click Here to Verify the license number, or call the Board offices for information.

Owner-Builder Affidavit Of Exemption

If you are seeking an exemption from licensure pursuant to NRS 624.031(5), you must complete an Owner-Builder Affidavit of Exemption form, which is also available by calling the Board’s offices at: (702) 486-1100 in Southern Nevada, or (775) 688-1141 in Northern Nevada to request that the affidavit be mailed to you. An owner-builder must also obtain the required signatures and submit the original to the building department with their application for a building permit.

As an owner-builder, you must acknowledge the following obligations and duties:

  • I may not sell or lease this property. If I sell or lease, or offer to sell or lease the newly built structure within one (1) year after completion, it may be presumed that I have violated the provisions of the exemption and Chapter 624 of NRS.
  • I may not hire an unlicensed person to act as my contractor, agent or construction manager.
  • I must directly supervise the construction.
  • Any subcontractor(s) working on this project must be properly licensed by the Nevada State Contractors Board.
  • Any person working on my project who is not a licensed contractor must work under my direct supervision and must be employed by me. I must comply with all state and federal laws as an employer in the State of Nevada, including payroll deductions (FICA and Income Tax withholding), provide industrial insurance coverage and pay required unemployment compensation for that employee.
  • If my project requires the repair, restoration, improvement or construction of a pool or spa, I acknowledge my obligation and duty to comply with the provisions of NRS 624.900 – NRS 624.930 (Inclusive).
  • I acknowledge that I have received copies of NRS 624.900 – NRS 624.930 (Inclusive) and NRS 278.573

For More Information

Nevada Department of Business and Industry Nevada Division of Industrial Relations

(775) 684-7260

Internal Revenue Service

Local Offices:

Southern Nevada: (702) 868-5005

Northern Nevada: (775) 824-2218