Nevada as compared to many other states is one of the stricter states in its building codes and requirements for general construction. The Nevada State Contractors Board typically have three classification of licenses, A, B, and C. The A Classification is your general engineering which is typically your heavy civil work like roadways, plumbing, refineries, petroleum and all of the infrastructure that would encompass a master planned community like water, sewer and your dry utilities. The B Classification is your general building and vertical construction. There are 6 sub categories in the B Classification like a B2 which is a Classification for home builders. The C Classification is for your specialty contractors like plumbers, hvac, electrical etc. Contractors are limited in the scope of work performed by a monetary figure depending on the size of their company and the work they have performed in the past.
Many construction and remodels are being held up due to supply issues. Product is literally sitting on ships waiting to be offloaded at harbors all around the country. Raw material prices are fluctuating constantly. Most bids are being limited to 30 days and then they are being re-evaluated and rebid based on current prices that are rising as much as 15% per month. Some contractors are limiting their bids to 5 business days.
On projects that take a lot of time they are sitting down with the contractor every 30 to 60 days and re-evaluating the entire project cost. Even though money is cheap to borrow, approximately 10% of the projects are being cancelled because costs have risen so much that the project isn’t feasible any longer.
Building permits can also be a problem. Permits have a shelf life and do expire. With COVID and supply chain issues, approved permits expire and the process is then again held up with the permits having to be reissued. Gone are the days when you could physically go in and talk to someone. Everything is digital and is handled remotely. This causes problems because there is no direct oversight of City Building Dept employees and slowdowns are the norm.
