We regularly hear from customers who have worked with local contractors here in Reno and Sparks and been asked for 50% deposits before any work begins. According to the Nevada State Contractor’s Board (NSCB), that’s outside NRS 624 as of September 2023. In other words, if your Nevada contractor is asking for a 50% deposit, as many do, that’s not right!
Contractor Deposit Amounts According To The NSCB
In September 2023, a new statute under NRS 624 specified enhanced contract requirements and consumer protections for residential contractors performing improvement work on single-family residences. In addition to required information on all contracts, it specifies the amount of money a contractor can request and accept upfront (i.e., a deposit):
“The amount of money a contractor can take up front can’t exceed $1,000 or 10% of the aggregate contract price, whichever is less of any initial down payment or deposit before the start of work.”
This is news to a lot of people, including our customer Pat. She describes her experience researching local companies for a patio cover project:
“Contracting for patio covers in Reno is treacherous,” she says. “We know and can speak from experience. Even after checking with the BBB, reviews, and getting manufacturer recommendations we have suffered significant disappointment, property and financial damages at the hands of three different companies, [names redacted].”
After the installation of her lattice patio cover, Pat was interested in converting it to a solid roof. Apprehensive but committed, she began her research to find a company for the job:
“We checked the existing engineering and got estimates. Like before there was a range of contractors. Some did not return calls. Some came to inspect the job but did not submit a quote. Some came out telling us we did not need a building permit (red flag raised), relatively uninterested in engineering or material choices, with prices ranging from very high to moderate. All wanted a 50% deposit up front (contrary to Contractor Board mandates).”
According to Pat, Golden Eagle Builders was the only company to openly disclose that the Contractors Board now stipulates that contractors may collect only a 10% deposit. Clearly, knowing your rights is important. It also puts you in the best position to find an honest, reliable contractor deserving of your trust.
The Takeaway
To be very clear, no contractor should be asking for a deposit above $1,000 or 10% of the aggregate contract price (whichever is less) before beginning your project. At Golden Eagle Builders, we’re committed to doing things the right way, from start to finish, and misleading homeowners about deposit amounts just isn’t something we’re willing to do. If you’re looking for the services of experienced finish carpenters, we’d love to answer your questions. Contact the Golden Eagle Builders team in Reno and Sparks today.
