What amount is considered a lawful deposit for residential contracting before work must commence within a specified time?

In residential contracting in Nevada, the law specifies that a contractor may request a deposit from the homeowner to secure the work. The allowable deposit amount is set at a maximum of 10% of the total cost of the project before work begins. This is designed to protect consumers from being overcharged upfront and ensures that contractors have an incentive to begin the work promptly.

Additionally, this regulation helps maintain transparency and fairness in the contracting process, assuring homeowners that they are not paying an excessive amount before any services are rendered. If a contractor were to demand a larger deposit, it could be seen as a violation of state regulations, which exist to safeguard the interests of both parties in a construction contract. Understanding this limit is crucial for compliance with Nevada's contracting laws and is an essential aspect of responsible contracting practices.