Contractor

A contractor prices and does repairs and pulls permits. Each license covers certain types of work. In Nevada, each license also has a dollar limit. An unlicensed person may do only small repair or upkeep jobs under $1,000 that need no permit, and never plumbing, electrical, or heating and air-conditioning work, and you can’t split a bigger job into small contracts to stay under the limit. In California, an unlicensed handyman may take only jobs under $1,000 (labor and materials) that need no building permit. A job under $1,000 also needs a license if the worker has any helpers, and you can’t split a bigger job into small contracts to stay under the limit. In Arizona, an unlicensed handyman may take only jobs under $1,000 (labor and materials) that need no building permit, and you can’t split a bigger job into small contracts to stay under the limit. In Utah, the handyman exemption (not a limit on licensed contractors) lets an unlicensed worker take small jobs, under $7,000 a project (labor and materials). For a job over $3,000, the worker must first file a one-time affirmation with the Division of Professional Licensing (DOPL) showing liability insurance, plus workers’ compensation if they have employees. That registration isn’t a contractor license, and plumbing, electrical, gas and heating work still needs a licensed trade. Check DOPL’s current requirements. Texas has no statewide license for general contractors or remodelers: the state licenses electricians, plumbers and air-conditioning contractors, and some cities register contractors, so check those, plus insurance and references.

When you need one

• Before you buy: a repair estimate, even from the outside, to set your maximum bid.
• After you own it: the full scope once you have the keys.

How to find one

• Get at least three written bids for the same scope of work.
• Ask for proof of insurance, and never pay large sums upfront.

Questions to ask

• Which licenses do you and your trades hold, and does the job fit their type of work (and dollar limit, where the state sets one)?
• Texas: which trade licenses and city registration cover this job?
• What’s the payment schedule?
• Who pulls the permits?

A licensed contractor is a builder or tradesperson the state has tested and licensed for a type of work. Investors who buy at auction or buy bank-owned homes usually need repairs, so picking the contractor is often the biggest money decision after the purchase itself. In Nevada, the license comes from the Nevada State Contractors Board (NSCB). In California, the license comes from the Contractors State License Board (CSLB). In Arizona, the license comes from the Registrar of Contractors (ROC). In Utah, the license comes from the Division of Professional Licensing (DOPL).

In Nevada, the license matters most when something goes wrong. A state recovery fund can repay homeowners hurt by a licensed contractor, and people who hire an unlicensed worker usually lose that protection. The NSCB also warns that unlicensed workers often skip workers’ compensation insurance and trade exams. In Arizona, the license is what protects you when a job goes wrong. A state recovery fund can repay homeowners hurt by a licensed contractor, and people who hire an unlicensed worker usually lose that protection. In Utah, the license matters if a supplier files a lien on your home. You can clear a supplier’s lien on a home you or your tenant live in if you paid a licensed contractor under a written contract, and people who hire an unlicensed worker usually lose that protection.

In Nevada, read the fine print on the recovery fund before counting on it. The Residential Recovery Fund covers owners who own and live in a single-family home, so a rental or flip you don’t live in may not qualify. In Arizona, check the recovery fund’s limits before counting on it. It covers work on the homeowner’s primary residence, so a rental or flip you don’t live in may not qualify, and it has paid only part of some losses when many victims claim against the same contractor.

How they’re paid

• Pay in stages tied to finished work, not up front. Nevada's contractor board (NSCB) tells homeowners to put payment schedules in a detailed contract and never pay in cash.
• In California the legal cap on a home-improvement down payment is 10% or $1,000, whichever is less.
• In Texas, also hold back 10% of the contract price until 30 days after the work is done (Property Code 53.101), and pay that part only then; if you don’t, unpaid subs and suppliers who gave the required notices can claim a lien for that amount (53.105).
• Keep receipts, contracts and photos. Arizona’s ROC asks for these documents when a homeowner files a recovery fund claim.

Check before you hire

• Check any license or registration the work requires (state trade licenses, city registration) on the official lookup (below), and confirm it covers the type of work.
• In Texas, there’s no statewide general contractor license, but electricians and air-conditioning contractors need a state license from TDLR, plumbers need one from the Texas State Board of Plumbing Examiners, and your city may require registration and permits.
• Get at least three written bids and call references.
• Sign a detailed written contract listing materials, scope, timeline and payment schedule.
• Don’t pay cash, and keep any deposit small.
• Ask about workers’ compensation and liability insurance and permits before work starts.
• Keep proof of every payment. In Utah, proof of a written contract and full payment is what lets you clear a supplier’s lien on a home you or your tenant lives in. In Texas, you can ask for a sworn statement that the contractor has paid its subcontractors and suppliers before you pay (Property Code 53.085).
• In Nevada, check whether your property qualifies for the state recovery fund before relying on it (the fund covers owner-occupied homes).
• In Arizona, check whether your property qualifies for the state recovery fund before relying on it (the fund covers owner-occupied homes).

Real stories

Licensed contractor failed, recovery fund repaid owners (2024)

The NSCB awarded 24 homeowners a total of $394,068 from the Residential Recovery Fund after licensed contractors failed them. Nearly half had paid S&E Contracting Inc. (doing business as Made in the Shade) for work that was never done. The board revoked that license. One owner had paid $8,750 for a patio cover the licensee never built, and was paid back.

Lesson: Hiring a licensed contractor gave these owner-occupants a state safety net that people who hire unlicensed workers don’t get.

Paid-in-full roof job, supplier lien lifted (2026)

A couple hired a roofing company and paid in full. Then a materials supplier put a lien on their home because the roofer hadn’t paid it. The roofer and supplier settled, and the lien was lifted. Utah’s director of professional licensing explained the rules. Homeowners who hire a licensed contractor, sign a written contract and pay as agreed can still get a Certificate of Compliance. It requires a lien to be removed within 15 days. That holds even though the state’s lien recovery fund is out of money.

Lesson: A license, a written contract and proof of payment are what protect a Utah owner from paying twice.

Unlicensed “Re-Bath Reno” took $160,000 (2024)

The owner of Re-Bath Reno, an unlicensed contractor, had been convicted of unlicensed contracting in 2015. The owner took about $160,000 from at least 14 homeowners. Most victims were seniors who paid and never saw any work done. The owner pleaded guilty to two felony counts of obtaining money under false pretenses and faced more than $133,000 in restitution.

Lesson: Unlicensed contractors leave you with no recovery fund, so check the license before you pay a dollar.

Licensed pool builder vanished; fund paid one-third (2025)

A Phoenix-area homeowner was one of more than a dozen who paid Unity Pools. Its owner abandoned jobs and left “concrete holes.” The ROC revoked the licenses and tapped its Recovery Fund. But payouts are capped at $200,000 per license, so eight homeowners were cut to $25,000 each. He was out about $75,000 and got a $25,000 check.

Lesson: Even with a licensed contractor, recovery funds have caps, so don’t prepay large sums ahead of the work.