The Nevada State Contractors Board is warning homeowners and suppliers to be alert following a wave of complaints involving unlicensed people posing as contractors, taking upfront payments, and canceling payments after having materials delivered.
The scam involves people requesting payments through Zelle or other bank-draft methods, claiming the funds are needed to purchase construction materials.
Materials are then delivered to the consumer’s property, but the person who placed the order pays with a check and quickly stops or cancels the payment. No work is ever performed.
“Make no mistake, the unlicensed individuals performing this scheme are performing fraudulent acts and will be pursued criminally by the Nevada State Contractors Board when we are able to validate complaints from consumers,” said Executive Officer David Behar.
The board is urging material suppliers to take extra precautions when accepting check payments and advising homeowners to always verify that they are hiring a licensed contractor.
State law limits down payments to no more than $1,000 or 10 percent of the contract’s value, whichever is less.
Consumers can verify a contractor’s license by visiting the NSCB website, using its mobile app, or calling the board directly.
It’s important to confirm that the license is active and in good standing, and that the contractor’s contact information and license classification match what is listed on contracts or paperwork.
Red flags include:
- No contractor license number or mismatched license information
- High-pressure sales tactics and limited-time offers
- Demands for large or cash-only down payments
- No written agreement outlining the project
People have up to four years from the start of a project to file a complaint when hiring a licensed contractor and two years when the contractor is unlicensed.
The board emphasized that a business license is not the same as a contractor’s license. Only a contractor’s license provides access to regulatory protections, including investigations, corrective orders, disciplinary actions, and potential eligibility for the Residential Recovery Fund, which offers up to $40,000 for validated damages.
