nevada state contractors board billboard 2009_billboard.pdfthe contractors’billboard is published...

• Federal Bid Opportunities ...................... Page 3

• NSCB News ........................................... Page 5

• Common Tax Errors ............................. Page 8

• Disciplinary Actions ........................... 0

• Criminal Cases ................................... Page 12

• Administrative Citations ..................... Page 13

• Tips On Cost Control ......................... Page 15

• A Company Profile ............................. Page 16

How Contractors Can SuccessfullyBid On Public Works Projects

Page 1

NNeevvaaddaa SSttaattee CCoonnttrraaccttoorrss BBooaarrdd BillboardBillboardEstablished 1941

Committed to Promoting Integrity and Professionalism in the Construction Industry

Jim Gibbons, Governor www.nscb.state.nv.us July - September 2009

Inside This Issue

By Gus NunezThe first thing a contractor needs to do

to be considered for public works jobs isto get listed on our “List of QualifiedBidders.” To do this, you need to fill outan application and submit it to the Stateof Nevada Public Works Board. Theapplication, along with the NevadaRevised Statutes (NRS) and NevadaAdministrative Code (NAC) pertaining tothe requirements and process, are avail-able at our website:www.spwb.state.nv.us

There are no fees involved in gettingqualified. The forms aren’t that arduous,and if you have questions, call us at:(775) 684-4141 and ask for CeCe, whocan guide you through the applicationprocess.

Your qualifications will be based pri-marily on your company and principal

personnel experience, your license limitand/or bonding limits. Bonding is a sig-nificant part of doing business with thestate. I would point out that Nevada’slaws require a contractor to obtain bond-ing, if the project is more than $100,000.Additionally, we require a bid bond in the

Southern Nevada2310 Corporate Circle, Suite 200

Henderson, NV 89074Phone: (702) 486-1100

Fax: (702) 486-1190E-Mail: [email protected]

Northern Nevada9670 Gateway Drive, Suite 100

Reno, NV 89521Phone: (775) 688-1141

Fax: (775) 688-1271E-Mail: [email protected]

Hours of OperationMonday - Friday8 a.m. to 5 p.m.

(See OSHA, Page 4)

(See How Contractors, Page 3)

To enhance safety in the construc-tion workplace, the 2009 NevadaLegislature enacted Assembly BillNumber 148 that requires workers tocomplete an Occupational Safety andHealth Administration “OSHA” 10Hour safety course and supervisors tocomplete a 30-Hour OSHA Trainingcourse no later than 15 days afterbeing hired.

The new measure becomeseffective Jan. 1, 2010.

Once the course is completed, theconstruction worker will receive a“completion card” that must be

presented to their employer. The“completion card” is valid forfive (5) years.

OSHA’s 10-hour constructioncourse is an introduction to OSHAand its Construction Standards,covering several subparts of thestandard with emphasis on Nevadaenforcement activities.

OSHA’s 30-hour supervisortraining provides training in OSHA’sConstruction Standards, and is anexpanded version of the 10-hour

OSHA-10 & 30 Training CoursesRequired Starting January 1, 2010

How To Contact The Board

Jim Gibbons, Governor

Board MembersGuy M. Wells, Chair

Jerry Higgins, TreasurerWilliam “Bruce” King

Michael EfstratisKevin E. BurkeJohn C. Ellison

Nathaniel “Nat” Hodgson III

Margi Grein, Executive Officer

Mission Statement“The Nevada State Contractors Board is

committed to promoting public confidenceand trust in the competence and integrity oflicensees and to protect the health, safety

and welfare of the public.”

Website:www.nscb.state.nv.us

Art Nadler, EditorRanya Botros, Editorial Assistant

Phone: (702) 486-1139FAX: (702) 486-1176

The Contractors’ Billboard is published by the Nevada State Contractors Board as a service to licensed contractors to promote a better understanding of Nevada contracting law and to provide information of interest to all construction professionals. This information is believed to be accurate at the time of publication.The Contractors Board and the State of Nevada assume no responsibility for any damage that arises from any action that is based on information found in this publication.

C. 2009 Nevada State Contractors Board

Across The BoardApril 1, 2009 through June 30, 2009

Investigations Division

Compliance InvestigationsInvestigations Conducted ........................................ 862Investigations Closed .............................................1,000Licenses Revoked ....................................................... 57Fines Assessed .................................................$166,100Investigative Costs Assessed .........................$140,451Recovery Fund Claims Awarded ................................. 0

Criminal InvestigationsInvestigations Conducted ........................................ 331Investigations Closed ............................................... 359Felony Cases Filed ......................................................10Criminal Complaints Filed with District Attorney ..... 14Citations Issued ........................................................... 85Convictions .................................................................. 76Restitution Ordered by Court ......................... $136,067Fines Assessed by Court .................................. $21,071

Licensing Division

New License Applications Received ....................... 673New Licenses Issued ................................................ 490License Change Applications Received ............... 1,391 Licensed Nevada Contractors ..............................17,641

amount of 5 percent of the bid at bid open-ing. Some of our projects are constructedusing Construction Management at Risk,but the majority of our projects are award-ed based on the lowest responsive bid.

Since many of our projects do go out tobid, the next question is, “What are somegood tips for submitting a responsive bid?”This can best be answered by reading our“Instructions to Bidders” and becomingfamiliar with our “General Conditions.”Both of these documents (as well as all ourprimary documents) are available on ourwebsite.

Additionally, questions that are specificto the work can best be answered by theproject manager assigned to the project.Deputy Manager Chris Chimits, who canbe reached at: (775) 684-4141, can directyou to the correct project manager for theproject you are interested in.

Next, I would recommend obtaining aset of bid documents from local planrooms, or from the architect’s office thatdesigned the project. Becoming familiar

with the contract documents and all that isrequired in them is the most critical ele-ment of submitting a responsive bid.

We emphasize fair treatment for all par-ties to the contract. Our architects arerequired to answer any questions you mayhave regarding documents and will do sovia addendum. This insures that all bid-ders have access to the same informationin preparing their bids. Also, we advertiseour projects in the local newspapers, aswell as on our website prior to the bidopening.

Common mistakes that we see at ourbid openings, which may render your bidnon-responsive, would be not providing acomplete list of first-tier subcontractorsperforming work that exceeds 5 percent ofthe prime contractor’s total bid. Thisincludes listing the prime contractor, if theprime is self performing work in theamount exceeding 5 percent. Also withintwo hours of the completion of the bidopening, the contractors who submitted thethree lowest bids must submit a list con-taining the name of each first-tier subcon-tractor who will be providing work in an

amount exceeding 1 percent of theprime’s bid or $50,000, whichever isgreater.

Other details, such as forgetting tosign the Bid Bond or listing a subcontrac-tor who is not properly licensed, can initi-ate bid protests by the other bidders.Attention to all details is very critical fora successful bid. I would also recom-mend that any contractor looking to dobusiness with us should not forget tocheck to see if he or she meet the qualifi-cations to apply for a certificate of eligi-bility from the Nevada State ContractorsBoard, as this certificate will give a 5 per-cent preference in bidding on certain pub-lic works projects.

Lastly, if at any time you feel you arenot getting straight answers to your ques-tions, please call me at: (775) 684-4141. Iam very interested in any contractor whodesires to do business with us and in sub-mitting a responsive bid.

Gus Nunez is manager of the NevadaState Public Works Board.

How Contractors Can Bid On Public Works Projects (Continued from Page 1)

By Rick Horn Where’s the commercial

market gone, and when willit return? It may be a goodtime to look at the publicsector of the contractingbusiness. Consider the fed-eral, state, cities, counties,Regional TransportationCommission, conventionauthorities, etc. No two procuring activitiesare the same, and it’s a continuous learningprocess.

The regulations, bidding process, evalu-ation procedures and administrationrequirements all have variables from oneprocuring activity to another. Let meexplain what I’m alluding to in my open-

ing remarks:In the federal construction contracting

arena, there are buying activities, which areconsidered “CENTRALIZED CON-TRACTING ACTIVITIES” that supportnumerous functions and award contractsregionally, nationally and even world wide.Examples of these are: the Army Corp ofEngineers (COE), Naval FacilitiesEngineering Command (NAVFACENG-COM), Air Force Center for EngineeringExcellence (AFCEE) and General ServicesAdministration (GSA) Public BuildingService.

The GSA Public Building Service sup-ports federally owned and leased real prop-erty outside of the Department of Defense.The nature of these contracts is to be pre-

negotiated agreements allowing a projectowner the opportunity to place an orderagainst the basic contractual instrument.

“DECENTRALIZED CONTRACT-ING ACTIVITIES” are normally consid-ered site specific, such as a base contract-ing function that supports internal require-ments not satisfied through a previouslymentioned centralized contracting activi-ty. These projects are normally publi-cized, and contracts awarded based onevaluation criteria. Additional direct mar-kets may involve requirements identifiedby what are called “Tenant” organizationslocated within a federal location. Forexample: military Reserve Units, military

Many State, Local And Federal Bid Opportunities Available

(See Many State, Page 4)

National Guard, non-appropriated fundactivities (NAFI), exchange services andcommissary services. Government WideAcquisition Contracts (GWACS) issuedunder the previously mentioned centralizedcontracting concept, cover primarily theremainder of projects; unless covered by aconcept not mentioned.

The last, but not least, consideration iswhat’s called “OUTSOURCED ACTIVI-TIES,” which refers to contracted-outfunctions. A list of examples, in the mili-tary construction world, would be: JOC(Job Order Contracts), SABER (SimplifiedAcquisition of Base EngineeringResources) and MATOC (Multiple AwardTask Order contracts). If you are not awareof these so called “indirect markets,”you’re really missing the boat. This marketaffords companies the opportunity to perform as the general contractor, or

become part of the team as a subcontrac-tor/supplier/service provider under thegeneral contractor. The contracted-outfunctions are ever increasing in all aspectsof today’s business world. Businessesshould definitely understand these con-cepts and position themselves according-ly.

The aforementioned only addresses the“tip of the iceberg” in the federal world ofconstruction contracting. As I mentionedpreviously, it is a continuous learningprocess, but can be a very lucrative mar-ketplace.

I’m sure you were required to learn inthe private sector and this isn’t much dif-ferent. Our Procurement OutreachProgram under the Nevada Commissionon Economic Development is here toassist you in all of these markets irrele-vant of whether you’re a GeneralContractor, trade contractor,material/equipment supplier or service

provider. We’re the “behind the scenes folks” for

your firm. POP provides you with morethan 1,500 clearinghouses of bid informa-tion (e-mail downloads daily to you), avery informative weekly newsletter, one-on-one technical assistance, marketingevents, workshops, seminars and individu-alized marketing strategies. It is essentialto understand the structure of these activi-ties, what’s needed to position yourselfsuccessfully and ensuring that a sizeableprofit is made to sustain your business.

For more information go to:www.expand2nevada.com, or call:(775) 687-1813 or (702) 486-2716.

Rick Horn is the director of theProcurement Outreach Program under theNevada Commission on EconomicDevelopment.

Many State, Local And Federal Bid Opportunities Available(Continued from Page 3)

course. Both training courses emphasize

construction safety, health hazardrecognition and prevention standardsdeveloped by the Occupational Safetyand Health Administration of theUnited States Department of Labor.

The State of Nevada Departmentof Business and Industry’s Division ofIndustrial Relations is responsible forapproving the OSHA-10 and OSHA-30courses. Federal OSHA training guide-lines that parallel Nevada’s require-ments are available at the OSHApublic website at: www.osha.gov

OSHA-10 and OSHA-30 courses

are offered by numerous organizationsincluding: Associated Builders andContractors; Southern Nevada HomeBuilders Association; AssociatedGeneral Contractors in SouthernNevada and Construction TrainingCenter in Northern Nevada, as well asthe Safety Consultation and TrainingSection (SCATS) of the Departmentof Business and Industry. In addition,the College of Southern Nevada andTruckee Meadows CommunityCollege offer courses, and some on-line courses are available.

For more information concerningthe new requirements, the followingwebsites may be helpful:

• The Safety Consultation and

Training Section (SCATS) website:http://www.nv1030.org/main.asp?pID=1

• College of Southern Nevada,http://www.csn.edu/workforce/index.asp

• Truckee Meadows CommunityCollege,http://www.tmcc.edu/WDCE/ISRCC/

The Department of Business andIndustry’s Division of IndustrialRelations may be reached at thefollowing telephone numbers: inSouthern Nevada (702) 486-9140; inNorthern Nevada (775) 824-4630 andin Northeastern Nevada (Elko)(775) 778-3312.

(Continued from Page 1)

OSHA-10 & 30 Training Courses Required January 1, 2010

Here’s What’s Happening at the Board

A contractor who is not activelyengaged in contracting may apply toplace his license on Inactive Status.The board may grant the application ifthe license is in good standing.

While the license is inactive, alicensee shall not bid, contract orengage in any work or other activitythat would require a contractor’slicense. Inactive status does notdeprive the Board of jurisdiction toproceed with any investigation ordisciplinary action against the license.

What you should know:• The Board will not refund any por-tion of the renewal fee that was paidbefore the license was placed on inac-

Placing Your License On Inactive Status tive status. • While a license is on inactive statusit is not necessary to maintain a quali-fied individual, a license bond, orindustrial insurance.• The fee to renew an inactive licenseis one-half the renewal fee of anactive license. An inactive renewalapplication will be sent to you.• Corporations, Limited LiabilityCompanies and Limited Partnershipsmust remain in good standing with theNevada Secretary of State.• A license may remain on inactivestatus for a maximum of five (5)years. If not returned to active statusat the end of the five-year period, the

license is cancelled.To return a license to active status

anytime within the five-year period,you will be required to complete anapplication, pay applicable fees andassessments, provide a current financialstatement to establish financial respon-sibility, provide a license bond and evi-dence of industrial insurance and com-ply with other requirements of anactive license.

If you need further clarification orhave questions, please contact theBoard’s Licensing Department inSouthern Nevada at: (702) 486-1100,or in Northern Nevada at:(775) 688-1141.

Since its launch on April 20,2009, the “Unlicensed ContractorAwareness Campaign” has sparkedthe interest of many contractorsstatewide. This program was devel-oped by the NSCB to help licensedcontractors take-a-stand againstunlicensed contractors.

By participating in the cam-paign, licensed contractors distrib-ute and display NSCB brochures,along with a poster, in their busi-nesses to help educate homeownersabout the dangers of hiring unli-censed contractors.

So far, more than 50 licensed

contractorsstatewidehaverequestedfree infor-mationalpackets.This freepacketincludessamples ofbrochures, an UnlicensedContractor Hotline card to reportunlicensed contractors, handoutsand a laminate “UnlicensedContractor Awareness” poster.

Unlicensed Contractor Awareness Campaign Off To Good Start, But More Contractors� Participation Is Needed

To request your free informa-tional packet, please send yourname, company’s name, licensenumber, address and phone numbervia e-mail to: [email protected]: Ranya Botros

(See Here’s What’s Happening, Page 6)

Here’s What’s Happening at the Board

The process for promulgating regu-lations concerning license bondamounts and financial statementrequirements was initiated by theBoard in late June.

The proposed license bond regula-tion will set a schedule of the requiredbond or cash deposit required forlicensees.

The proposed financial statementregulation establishes criteria for finan-cial statements provided to the Boardby a licensee or applicant for a license.

In order to adopt a regulation, anagency must first send its proposedregulation to the Legislative CounselBureau for review. It is a requirementof law that an agency that intends toadopt a regulation must determine the

economic impact the regulation wouldhave on small businesses. In addition,a public workshop must be held toreceive input from any affected indi-vidual. After the workshop is held, apublic hearing must also be conduct-ed. After consideration of written andverbal comments, an agency maychoose to change the language of aproposed regulation.

If substantive changes are made,an additional workshop and hearingare required. The final regulation isthen adopted by the agency and is sentto the Legislative Counsel Bureau andthen to the Legislative Commissionfor its consideration. If theLegislative Commission approves theregulation, it is then filed with the

Secretary of State and becomes effec-tive on the date it is stamped by theSecretary of State.

The process for adopting a regula-tion can take from four to 12 monthsdepending upon the complexity of thematter and the public input that isreceived.

If you have any questions concern-ing either of the proposed regulations,or would like to receive a copy ofeither of the proposed regulations,please contact a Licensing Supervisorin either of the Board’s offices at:(702) 486.1100 (Southern Nevada), or(775) 688.1141 (Northern Nevada).


Board Considers Regulation Changes

Nevada State POP A Good Resource For Contractors The Nevada Procurement Outreach

Program (POP) of the NevadaCommission on Economic Developmenthelps increase the flow of governmentcontract dollars to Nevada businesses.

POP simplifies the contractingprocess and connects Nevada’sbusinesses, large and small, withlucrative opportunities.

For a one-time $50 enrollment fee,Nevada businesses gain full access to allPOP services and benefits.

The goal of POP is to provideNevada’s businesses with the necessarytraining and technical assistance to

identify, submit bids and be awardedfederal, state and local governmentcontracts.

Procurement specialists guide busi-nesses through the bidding process andcan suggest partnering, teamingarrangements or subcontractingstrategies for managing large projects.

POP sponsors workshops andseminars, as well as Vendor OpportunityDays and Business Matchmakingevents. Businesses can use these eventsto meet potential clients, establish team-ing arrangements and meet with com-mercial supplier diversity program

representatives.For more information, contact the

POP offices at: 108 E. Proctor St.,Carson City, NV 89701. Phone: (775) 687-1813, or 555 E. WashingtonAve., Suite 5400, Las Vegas, NV 89101.Phone: (702) 486-2716.

You can also visit the POPwebsite at: www.expand2nevada.com/procurement.html

Pre-Construction Meeting A Must To Control Costs

(See Pre-Construction, Page 8)

By Mark Hayes

There should be NO QUESTION . . .having a pre-construction meeting is amust. With the start-up of new projects atan all time low and everybody bidding onthe few projects that are out there, it isimportant now more than ever to controlunexpected costs.

As a Clark County inspection specialistwho deals daily with quality assuranceagencies and special inspections, one ofthe biggest – and costliest – problems I seeis that required special inspections are notbeing performed prior to covering workand/or completion of the project. Thiserror can be expensive, as contractors arerequired to uncover work in order forrequired special inspections to beperformed.

The reason for foregoing these requiredinspections often seems to be that contrac-tors fail to hold a pre-construction meetingor fail to include the Quality AssuranceAgency (QAA) in that meeting. The pre-construction meeting provides the besttime to discuss the project’s specialinspection requirements to ensure thecontractor and the QAA are on the samepage and avoid problems later on downthe line.

Section 1704 of the InternationalBuilding Code (IBC) requires specialinspections to be performed during con-struction for certain types of work,including: concrete, masonry, soils,welding, high strength bolting and fireproofing, just to name a few.

If Clark County requires specialinspections for the project, the buildingpermit issued for the project will indicate aQAA is required about half way down onthe right hand side of the permit document.Prior to permit issuance, the project owneror his representative is asked which ClarkCounty Approved QAA they will hire to

perform the required special inspections.Clark County then issues the permit and aQuality Assurance Agency SpecialInspection Agreement (QAASIA) identi-fying the project owner, project name, siteaddress, work description and the selectedClark County-Approved QAA.

When a contractor receives thesedocuments, it is in the best interest of allparties involved to have a pre-construc-tion meeting.

Many benefits can be obtained andproblems avoided by just taking an houror so to go over what is expected of allparties to complete the project on time,on budget and in compliance with theapproved plans, specifications and build-ing codes. By having the designatedQAA attend the meeting, the followingspecial inspection issues can be discussedand negative ramifications avoided:

• QAA’s Awareness of the Project -Many times the QAA is not aware that ithas been designated as the project’s QAA.The QAA’s awareness will be accom-plished by requesting the agency’sattendance at the meeting.

• Special Inspection Scope - Sometimesthe contractor may not fully understandthe types of work that require specialinspections and the inspection intervals.The QAA can assist the contractor inassessing the types of work and when

special inspections are needed.

• Special Inspection Scheduling - In somecases, the QAA may not be made awarethat work requiring special inspection isready for inspection. The contractor andthe QAA can agree on a procedure forspecial inspection notification.

• Special Inspection Reporting - Workrequiring special inspection may not beallowed to proceed without having thespecial inspection reports available toClark County inspectors. The QAA caninform the contractor of the report typesand format.

• Special Inspection Corrective Action -Occasionally, work may be found to notcomply with the approved drawings,project specifications and/or codes, thusrequiring a Non-Compliance Report to beissued. It is very important to understandthat this report is not a “negative” markon the contractor, but a helpful reminder toall parties of what needs to be corrected.The QAA and the contractor can discussthe process of addressing and clearing anynon-compliant issues, should they arise.

• Special Inspection Final Report - Atthe completion of special inspection duties,the QAA compiles all reports in adesignated format to be submitted to ClarkCounty for review and approval. TheQAA can inform the contractor of the finalreport submittal requirements and assist inthe overall understanding of the specialinspection process.

Any of the above noted issues canresult in construction delays and costoverruns. Work requiring special inspec-tion that is found not to have been properlyinspected and/or documented may be

subject to correction or removal and re-construction. By simply taking some timeprior to the start of a project to meet withall parties and discuss any questions orissues involving special inspection require-ments, a project can be completed withoutsome of the common unexpected costs.

Therefore, there should be no questionthat having a pre-construction meeting is amust. Just remember: there might neverseem to be enough time to get somethingdone right, but there’s always enough timeto do it over.

NOTE: The Las Vegas Valley iscomprised of several building jurisdic-tions. The information provided above isbased on Clark County’s special inspec-tion process. Always check with theappropriate building jurisdiction havingauthority regarding its process forperforming special inspections.

Keep up to date with building permitand inspection news by subscribing toelectronically receive Clark CountyDevelopment Services’ monthly newslet-ter and periodic updates. Visit the coun-

ty’s “Direct Connect” Web page to signup:http://www.accessclarkcounty.com/depts/public_communications/Pages/direct_connect_signup.aspx

Mark Hayes is an inspection specialistwith Clark County Development Services.


Common Sales Tax Errors Made By Contractors

By Paulina Oliver

Pursuant to the Sales and Use Tax reg-ulation NAC 372.190 a construction con-tractor is a person who acts solely in a pro-fessional capacity to construct, alter, repair,add to, remodel or otherwise improve anyreal property.

The term includes subcontractors, inte-rior decorators and specialty contractors,but does not include licensed architects,licensed engineers or manufacturers of fac-tory built homes or units.

A construction contract is defined in theregulation as a contract to erect, construct,affix a structure to real property, andremodeling, altering, adding, or repairingan improvement to real property. A contractmay be formal or informal and includesadvertised, negotiated, cost reimbursable,lump-sum, and time and material contracts.

When a contractor purchases materialsin the performance of a construction con-tract, he or she should not use a resale cer-tificate. They must pay tax directly to theirvendors. If purchasing material from anout-of-state vendor, who does not chargeNevada sales tax, the contractor is respon-

sible for reporting and paying use tax,which is at the same rate as sales tax.

There is a special “Consumer Use TaxReturn” provided by the Department ofTaxation to report this use tax. Frequently,contractors make retail sales that may ormay not be in conjunction with a con-struction contract.

The tax treatment of these retail salesof tangible personal property is differentthan tax treatment of the improvement toreal property.

Unlike retailers that must charge salestax on full retail price, including anymark-up, of the tangible personal propertythat is sold to a customer who is the enduser, a contractor who enters into a con-struction contract for improvement of realproperty is considered the end user andmust pay sales tax on the cost of all mate-rials purchased.

A retailer typically sells materials, butdoes not install or affix material to real

property themselves. Contractors who arealso retailers must use the regular “Salesand Use Tax Return” to report both typesof transactions.

Some of the most common sales taxerrors made by contractors include:

• Adding sales tax or any wording aboutsales tax on their construction contracts,invoices or receipts. When sales tax ischarged on an invoice or receipt, thetransaction is deemed to be a sale. By including the words “sales tax,” acontractor may unknowingly change thenature of the tax liability of the transactionfrom a use tax on materials cost to salestax on the full retail price. Where thisoccurs, the contractor is no longer eligibleto pay the tax on their purchase price.All sales tax charged to customers mustbe remitted to the Department of Taxation.

• Not paying sales tax on material involv-ing contracts with exempt organizations,like schools and churches. It is thecontractor that is the end-user, not theexempt organization, so their exempt

Pre-Construction Meeting A Must To Control Costs

(See Common Sales Tax, Page 14)

Elko Building Department Issues Opinion On Mechanical CodeBy Ted Schnoor

Many contractors are not sure when apermit is required. The City of ElkoBuilding Department has issued this opin-ion regarding the “Mechanical Code.”

The purpose of the mechanical code isto provide minimum standards to safeguardlife or limb, health, property, and publicwelfare by regulating and controlling thedesign, construction installation, quality ofmaterials, location, operation, and mainte-nance or use of heating, ventilating, cool-ing and refrigeration systems; incinerators;and other miscellaneous heat-producingappliances.

A Mechanical Permit IS NOT requiredfor the following:1. Portable heating appliances.2. Portable ventilation appliances.3. Portable cooling unit.4. Steam, hot or chilled water piping withinany heating or cooling equipment regulatedby code.5. Replacement of any minor part that doesnot alter approval of equipment, or makesuch equipment unsafe.6. Portable evaporative cooler.7. Self-contained refrigeration systems con-taining 10 pounds or less of refrigerant, orthat are actuated by motors of 1 horsepow-er or less.8. Portable fuel cell appliances that are notconnected to a fixed piping system and arenot interconnected to a power grid.

In some cases, emergency replacementand repair work must be done as quickly aspossible, so it is not practical to take thenecessary time to apply for and obtainapproval. However, a permit for the workmust be obtained the next day that thebuilding department is open for business.Any work performed before the permit isissued must be done in accordance with thecode and corrected, if not approved by thebuilding inspector.

A Mechanical Permit IS REQUIRED for

the following:1. Any work not described in the exemp-tions listed above.2. A mechanical permit is required for theerection, installation, alteration, repair,relocation, replacement or remodel, addi-tion to, use or maintenance of anymechanical system, such as heating, cool-ing, ventilation, refrigeration system,incinerators, or other heat producingappliances.3. If any concealed trap, drainpipe, water,soil, waste or vent pipe becomes defec-tive, it becomes necessary to remove andreplace the same with new material.

To whom permits may be issued:Any permit required by this code may

be issued to any of the following persons:• A person holding an appropriate validstate contractors license and anappropriate valid city business license.• An owner of property who is building orimproving a residential structureon the property for his own occupancyand not intended for sale orlease within one year after its completion.

Note: The city requires that all gener-al and subcontractors must maintaina valid state contractor’s license and anappropriate valid city businesslicense. Any company or individual thatbids work, not hired on an hourlybasis by a licensed contractor, must belicensed as stated above. The administra-tive authority shall require a completelist of all contractors prior to theissuance of the building permit and

request an update at any time until thecertificate of occupancy is issued. (Ord.647, 8-23-2005).

Are plans required with the permitapplication?

NO — Application only—no plansare required for the following:• Like for like replacements• AC condenser installations (not includingelectrical work)• The authority having jurisdiction shall bepermitted to waive the submission ofplans, calculations or other data, if it isfound that the nature of work applied for issuch that review of plans is not necessaryto obtain compliance with themechanical code.

YES — Application with plans (forreview) required for the following:• Replacements or new installations thatrequire new gas or electrical lines• Mechanical plans are required for theerection, installation, alteration, repair,relocation, replacement or remodel, addi-tion to, use or maintenance of any mechan-ical system, such as heating, cooling, venti-lation, refrigeration system, incinerators orother heat producing appliances.

Mechanical plans require the follow-ing:

For heating / cooling unit cfm (cubicfeet per minute) capacity, location andworking space:• Evaporative Cooler—Number ofHorsepower (HP)• Heat Pump—Tonnage and KW strip• Electrical AC/Furnace Total KW demand• Gas Furnace—BTU / h demand or input• Energy Code Compliance (if applicable)

Access and working space must be pro-vided for all concealed equipment.Detail how combustion air is provided.

Size and type of duct work with registersizes, cfms and material used:• Duct sizes

(See Elko, Page 14)

Board Disciplinary Actions: May 1 - July 31, 2009Code:IC = Investigative Costs F = FineR = Restitution Please refer to the NSCB websiteAdmin. F = Administrative Fine for a list of violations

(See Disciplinary Actions, Page 11)

Board Disciplinary Actions: May 1 - July 31, 2009Code:IC = Investigative Costs F = FineR = Restitution Please refer to the NSCB websiteAdmin. F = Administrative Fine for a list of violations


Criminal Cases Prosecuted: May 1 - July 31, 2009Code:IC = Investigative Costs F = FineR = RestitutionPB = Plea Bargin

* By Nevada law, the Nevada State Contractors Boardhas the authority to issue citations and pursueprosecution of individuals for violations ranging fromcontracting without a license to fraud. The following arethe convictions and penalties imposed by the courts.

By Don C. Jeppson, AIA

Two issues facing building depart-ments is work being done by licensedcontractors who don’t verify that there isa valid permit before starting a job, andupon completion of the work notarranging for final inspections.

About 10 percent, or more than 300permits, go uninspected and expire eachyear in Washoe County. Unpermittedwork is estimated to be two or three timeshigher. To make matters worst, thereseems to be a trend among licensed con-tractors to make the homeowner responsi-ble for obtaining permits as anOwner/Builder, or to make the homeown-er responsible for inspections on permitsobtained by the contractor.

While homeowners are allowed toobtain permits as Owner/Builders on theirprimary residence, licensed contractorswho do the work are still required toensure a permit was obtained beforebeginning any work. Licensed contractorsneed to verify the work they are hired foris covered by a valid permit, and the workfollows the approved drawings.Contractors who do not verify the work iscovered by a permit are subject to fines,penalties and could be subject to furtheraction by the Nevada State ContractorsBoard. NRS 624.3011 (2) states: “If acontractor performs construction withoutobtaining any necessary building permit,there is a rebuttable presumption that thecontractor willfully and deliberately vio-lated the building laws of this state or ofits political subdivisions.”

The next issue is more complex.When the contractor obtains a permit,then the contractor has the responsibility

and duty to schedule and pass all necessaryinspections, including the final inspection.This duty cannot be discharged to thehomeowner. Section 109.1 of theInternational Building Code states that, “Itshall be the duty of the permit applicant tocause the work to remain accessible andexposed for inspection purposes.” Thisproblem occurs mostly with simple permitswhere the contractor is relying on thehomeowner to provide access, such as forfurnace or hot water replacements, poolbarriers and utilities. The contractor needsto ensure access to the site and that allinspections are finalized. Contractorsallowing permits to expire without inspec-tions are also subject to fines and penalties.

These issues are frustrating for every-one involved. Not only do these issues costcontractors and homeowners unnecessarytime and money to correct, but moreimportantly, they can pose a serious lifeand safety threat to our community.

In the near future, the Washoe CountyBuilding Department plans to provide use-ful tools through its website to help home-owners and contractors better track the sta-tus of permits and the results of inspec-tions. The department also plans to haveworkshops for contractors this winter todiscuss ways of improving the permittingprocess. For more information, please callthe Washoe County Building Departmentoffice at: (775) 328-2020, or visit our web-site at: www.washoecounty.us/bldgsafety/

Don C. Jeppson is the director of theWashoe County Building and SafetyDepartment.

AdministrativeCitations:

May 1 - July 31, 2009(All Paid Investigative Costs)

Contractors: Obtain A Valid PermitBefore Starting A Job;

Make Sure To Arrange Final Inspection

• Exhaust fan size, type and location• Dryer vent size and location. Provide cal-culations if over length limitations (UMC504.3.2.2)• Attic mounted / roof mounted equipmentto show method of support and engineeringcalculations if required. Access and a plat-form are to be detailed when a roof pitchexceeds 4:12 (UMC 910.5)• Energy Code Compliance (if applicable)

TWO COMPLETE SETS OF PROP-ERLY STAMPED & SIGNED PLANSARE REQUIRED. PLANS THAT ARESTAMPED “PRELIMINARY,” “FORREVIEW ONLY” AND/OR “NOT FORCONSTRUCTION” ARE UNACCEPT-ABLE.

PLANS DRAWN IN PENCIL, INKOR COLORED HIGHLIGHTING ARENOT ACCEPTABLE. COMPLETE

PLANS SHALL INCLUDE THE FOL-LOWING:

A Nevada state Licensed Contractor orOwner/Builder when used for his ownwork may draw plans. If a licensedcontractor draws the plans, the plans shallbe so identified with the following infor-mation on the front sheet of each princi-ple’s drawings on each set of plans:• The Contractor Company Name• State Contractor’s License Number• State Contractor Classification (C-1, C-2b, B, B-2, etc.)• State License Limit• Printed Name of Person who prepareddrawings• Original Signature of Person who pre-pared drawings

In order to utilize this exemption, thecontractor will be required to title theplans without references to beingprepared by a party other than the con-tractor who is completing the work.

Ted Schnoor, CBO, is the building offi-cial for the City of Elko. For more infor-mation, call: (775) 777-7220, or contactChristine Kuhlman, technical assistant, at:[email protected] or MelaunieLarreau, permit technician, at:[email protected]

Note: Permit requirements may dif-fer in cities and counties statewide.Check with your regulatory agencybefore beginning any work.


status does not transfer to the contractor.

• Using a re-sale certificate when purchas-ing construction materials they will usethemselves, either as part of a contract orfor tools and supplies, which are used inthe trade.

• Including material that does not becomepart of the real property and is sold sepa-rately such as furniture, equipment, anddisplay racks as part of their constructioncontract. The sale of these items is consid-ered a retail sale.

• Not taxing fabrication labor in a retailsale where no installation to real propertyis involved.

As of July 1, 2009, sales and use taxrates have increased by 0.35 percentstatewide.

The Department does allow for anexemption from this additional 0.35percent on property sold or used in theperformance of a construction contractentered into before June 30, 2009.Contractors must apply for thisexemption individually.

The application form and instructionscan be found at the Department ofTaxation website at:http://Tax.state.nv.us, under the“Common Forms” tab and is calledContract Summary Form and ContractorsExemption Letter Requirements.

Paulina Oliver is the ComplianceDivision tax manager for the NevadaDepartment of Taxation.

She is responsible for all audit andcollections activities in Las Vegas andHenderson.

For further information, or if youhave any questions, you may visit theDepartment website at:http://Tax.state.nv.us or call theirinformation line at: (702) 486-2300.

Common Sales Tax Errors Made By Contractors(Continued from Page 8)

Elko Building Department Issues Opinion On Mechanical Code

By Sheldon Schumacher

To maintain asuccessful business,it’s important tohave a current andaccurate accountingsystem in place.More than likely,you will have morethan one projectunder way at a given time.However, your business may stilllack important tools for day-to-daymanagement.

How do you manage individualprojects to control costs and stillmaintain profitability goals? Is itby the seat of your pants, or do youalso have a solid cost-accountingsystem isolating each contract’scosts - including labor, possibly bytask, materials and other directexpenses? Such a system inter-faces with the accounting systemand serves as a management toolto produce desired results. To beuseful for project management, thesystem must be updated with allproject related costs frequently,consistent with the duration andcomplexity of the contract.

If your company was awarded acontract, the bid proposal shouldhave reflected a competitive pricefor work. This price came fromskills and insight of company man-agement, competitive quotes formaterials and specific methods toobtain higher efficiencies leading tolower costs. A work scheduleshould have been included to showperformance requirements of thecontract in the project managementplan.

The project cost accountingsystem really starts with thepreparation of your bid proposal.For each project, you must pre-pare a condensed business plan.It will be the benchmark for costallocation in the cost accountingsystem where performance is com-pared and appropriate manage-ment actions are taken.

Once a contract is awardedand work begun, how do you oryour project manager use the costaccounting system to effectivelymanage the project? Completedwork-to-date should have arecorded cost for each of the vari-ous components in the costaccounting system. These are realnumbers not to be refuted.

After a project is started, pos-sibly several weeks to a monthdepending on the project, a projectreview is warranted. This reviewprocess should be performed peri-odically until the work is complet-ed.

At each review period, theproject manager should preparean honest, best judgment estimateof the labor, materials, otherdirect costs and the requiredscheduling to complete the proj-ect. The labor-to-complete compo-nent is typically estimated in anappropriate measure, such ashours or days and converted todollars when completed.

At this point in each reviewingperiod, the actual incurred costsof work completed to date isadded to the project manager’sbest judgment on estimated coststo complete. If the total of thesetwo items is equal to, or less than

the job costs prepared for the pro-posal, which the awarded contractis based on, the project is doingsatisfactorily. If the sum is greaterthan the cost anticipated in yourproposal, then the project is infinancial trouble and needs imme-diate management action.

If action is required, your costaccounting system will provide ameans by which to compare theactual execution of the work withthe estimated costs underlyingyour proposal. The comparison ofyour project budget to those costsactually incurred or anticipated, bytask, will identify those activitiesthat have exceeded the anticipatedcosts. Similarly, materials andother direct costs can be comparedto the budget.

Management actions to correctproject financial problems can takea number of different forms,including changes in personnel,changes in methods through inno-vations or changes in vendors. Ofcourse, all changes must satisfythe contract’s technical require-ments and time of performance.

To be successful, proper projectmanagement requires re-budgetingand re-scheduling of the uncom-pleted, remaining portion of workduring each and every review peri-od.

Sheldon Schumacher is a retiredcivil engineer with more than 50years of experience. He currentlyserves as a volunteer counselorwith SCORE of Southern Nevada.

Tips On Managing Individual Projects To Control Costs

Every so often relationships people buildwith others leads them to building theirown company. In 1943, Tom Macaulayfounded Desert Glass Contracting Co., Inc.(license number 0061A, Sparks, NV).

Jack Meich knew Macaulay’s son whilehe was in the Navy. Through his friend-ship with Macaulay’s son, Meich becamean office manager at Desert Glass in 1949.“Dad and Tom grew fairly close workingtogether,” says Mark Meich, Jack’s son.

At that time, Macaulay was simultane-ously running two companies: MacaulayIronworks and Desert Glass. In 1954, theelder Meich purchased the company fromMacaulay and became sole owner.

Mark Meich grew up working in hisfather’s company. He worked until he wasa teenager on Saturday mornings cleaningthe shop. In addition to working on week-ends, Meich worked his vacations and hol-idays at Desert Glass. After graduatingfrom college, he took over the companyfrom his father.

The friendship between Jack Meich andMacaulay that led to his ownership in 1954paved the way for the father-and-son rela-tionship that led to Mark Meich’s owner-ship several years later.

Meich learned many admirable

qualities from his father - hard work,dedication and honesty. All of thesequalities, he believes, helped him becomea successful contractor.

“We are (a) residential and small com-mercial, glazing subcontractor,” he says. The company specializes in installing andrepairing glass mirrors, showers, patiosand glass commercial doors.

In every type of trade, contractors willhave their likes and dislikes. For Meich,he enjoys the variety of projects in vari-ous types of buildings. Meich also workson different designs for store fronts thatinclude aluminum framings that support

glass walls or doors. Quality workmanship is something

Meich greatly values, which is what hetries to instill in his employees. “Ofcourse, I want it done right the first time,so we don’t get call backs,” he says. Hefeels quality workmanship and honestydistinguishes reputable contractors fromdisreputable contractors.

Being a relatively small company,Desert Glass still manages to provide itsemployees with benefits. “I try to paythem the best that I can for the work theydo,” Meich says.

One of his main priorities is safety.Meich says he needs to “keep everyonesafe because dealing with glass is noteasy.” Dealing with glass can bedangerous, unpredictable and sharp.He encourages his employees to take theirtime and be careful.

The economy, union issues and officerelocations are all issues Mark Meich hashad to deal with recently. He remainshopeful that someday his company willgrow.

“Well, I’d love to see it grow, I alwayshave.”

Mark Meich

Company Profile

Desert Glass Built Its Reputation On Relationships

The 4th Annual Mission Cool Off pro-gram assisted three recipients this year. Itwas sponsored by the NSCB and SouthernNevada Air Conditioning RefrigerationService Contractors Association(SNARSCA).

Laurie Whitaker, 48, of Las Vegas wasthe first recipient. She and her husband,Mark, care for their 22-month-old grandson,who was recently diagnosed with leukemia.“It gives us great peace of mind to have areliable system…Our family is extremelygrateful to the Nevada State Contractors

Board (and) the SNARSCA group…” T H Peter Tso, 62, of Las Vegas also

received a new AC unit. Tso suffers fromkidney disease and undergoes dialysistreatment three times per week.

“I’m really glad you guys can help mebecause I don’t have that much income,”Tso said.

The final recipient of the 4th AnnualMission Cool Off program was 77-year-oldDorothy Hypes of Las Vegas. Hypes is awidow living on a fixed income. Hypes wasthrilled when her new unit was being

installed. “I’m going to love the air condi-tioner,” Hypes said. Her old unit, whichstopped working two years ago, forced her touse a swamp cooler to keep cool during thesummer.

The following SNARSCA member com-panies either donated equipment or labor forthe 4th Annual Mission Cool Off program:Sierra Air Conditioning, Inc.; Yes! AirConditioning & Plumbing; LennoxIndustries; Sahara Air Conditioning andHeating, Inc. and Walker Crane.

4th Annual Mission Cool Off Recipients Grateful For AC Units

2009 Nevada State Contractors Board Meetings

The following 2009 Nevada State Contractors Board meetings will take place at: 2310 CorporateCircle, Suite 200, Henderson, NV 89074 and 9670 Gateway Drive, Suite 100, Reno, NV 89521beginning at 8:30 a.m.

• August 27• September 24• October 22• November 19• December 17

Agendas can be viewed on the website at: www.nscb.state.nv.us under “Meeting Agendas &Minutes,” three business days before each meeting. All dates are tentative and subject to change,until a meeting agenda has been officially posted.

Frequently Asked QuestionsMay a general building contractor perform all parts of a project?

No. A general building contractor shall not perform specialty contractingin plumbing, electrical, refrigeration and air conditioning or fire protectionwithout a license for the specialty.

If a contractor wants to bid a multi-phase project that exceeds hislicense limit, may he bid each phase individually?

No. A contractor may only bid each phase individually if the owner/lender is requesting bids for the phases as separate contracts. Acontractor is prohibited from bidding or contracting in excess of themonetary license limit established by the State Contractors Board.

Reprinted from: “The Blue Book, A Reference Guide For The Nevada Construction Industry,” 2009 edition.

For more information, visit the NSCB website at: www.nscb.state.nv.usTo download a copy of The Blue Book,

click on the “Nevada Law” icon. After that, click on the “Blue Book” link.

nevada state contractors board billboard 2009_billboard.pdfthe contractors’billboard is published...

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