• Surety bonds are a means of protecting the owner of a construction project from losing money if the contractor cannot complete the work or delivers substandard work. Nevada has strict laws dealing with contractors and surety bonds. These laws are found in the state's collection of codified laws, the Nevada Revised Statutes.
  
  

License

• A contractor must post a surety bond or a comparable cash deposit with the the state Contractors' Board to obtain a Nevada contractor's license in 2010. The amount of the bond can vary according the size of the contractor's business and the types of projects he is likely to construct, but the bond cannot be less than $1,000 or more than $500,000.
  
  

Cancelling the Bond

• A surety company may cancel a bond if it gives the contractor and the state Contractor's Board 60 days' notice by certified mail. The board must then inform the contractor he has 60 days to find a replacement bond or may have his license revoked or suspended, according to Nevada Revised Statutes, Section 624.275.
  
  

Claims

• Certain people have a claim against he bond if the contractor does not meet his responsibilities. The owner of the property has a claim if the contractor does not perform to his contract. An unpaid employee or supplier of the contractor and anyone injured through the contractor's negligence may also have valid claims. The individual must file her claim within two years of the act on which the claim is based.
  
  

Pools

• A contractor who works on residential polls or spas faces additional surety bond requirements. Depending on the size of the contractor's business, the minimum amount of the required bond is $10,000, with a maximum of $400,000. The bonding company must have an "A"`rating from a nationally recognized rating agency.