Building a swimming pool in Nevada might seem like a dream for homeowners, but some are discovering the hard way that hiring unlicensed contractors could turn that dream into a costly nightmare. A loophole in the state’s permitting process has become a magnet for unlicensed pool builders to exploit, putting homeowners at risk of fraud and leaving them with substandard or incomplete projects. Without stronger enforcement, this issue is set to grow, potentially leaving many Nevada residents in a financial bind.
The Risks of Unlicensed Contractors
One Nevada homeowner learned the dangers of hiring an unlicensed pool contractor after paying $12,000 for a project that was never completed. “He collected payment in full but never finished the work,” she explained, requesting anonymity for her safety. “Further research indicated he had not been licensed with the Contractors Board or the state.” With no legal recourse through the Contractors Board, the homeowner filed a fraud complaint with the Reno Police. Unfortunately, this scenario is becoming all too common.
According to Terry Wike, lead investigator for the Nevada Contractors Board, unlicensed contractors are increasingly hired for pool projects, thanks to a little-known loophole in the permitting process. The issue lies with the owner-builder affidavit, a document found on the Contractors Board’s website. By signing this form, homeowners can waive the requirement for a licensed contractor—provided they agree to complete all the work themselves.
The Owner-Builder Affidavit: A Double-Edged Sword
In theory, the owner-builder affidavit gives homeowners the flexibility to manage their projects. It allows them to obtain permits for construction work, including pool installation, without needing to hire a licensed contractor. However, the system relies on homeowners taking on the work themselves. “You’re allowed to do work on your own house and get a permit through the building department,” said Wike. “But you must do the work yourself.”
The problem arises when homeowners, after obtaining permits under the owner-builder affidavit, hand off the work to unlicensed contractors. This misuse of the affidavit has become a widespread practice, according to Wike. “We believe it happens more than it should,” he admitted.
A Loophole Without Oversight
The lack of oversight during the permitting process enables unlicensed contractors to fly under the radar. While cities like Reno and Washoe County inspect construction projects for code compliance, they rarely verify who is performing the work. “We inspect for minimum code and compliance,” said Chris Pingree, head of Development Services in Reno. “Our folks aren’t going to inspect I.D. cards to see what company they are with.”
Washoe County officials echoed this sentiment, noting that homeowners are not required to disclose whom they hire for projects covered under the owner-builder affidavit. This lack of follow-up makes it easy for unlicensed contractors to operate unchecked, leaving homeowners vulnerable to poor workmanship and incomplete jobs.
The Nevada Contractors Board’s public information officer, Randy Escamilla, warns that pools built by unlicensed contractors pose significant risks. “You’ve got plumbing, you’ve got electricity, plastering, so there are major components related to health, safety, and welfare,” Escamilla explained. If these elements are improperly installed, the consequences could be severe, ranging from costly repairs to serious safety hazards.
No One Taking Responsibility
Despite the rising problem, there is little clarity on who should be responsible for enforcement. The Contractors Board believes it’s the cities and counties’ job to monitor compliance since they issue the permits. In contrast, the city of Reno points to the Contractors Board, arguing that it provides the owner-builder option, thus making it their responsibility.
This back-and-forth has created a situation where unlicensed contractors can slip through the cracks. With no agency consistently monitoring who completes owner-build projects, the permitting loophole remains wide open. Until either the cities or the Contractors Board takes ownership of enforcement, the problem will likely continue, exposing more homeowners to fraud and unfinished projects.
The Consequences of Unlicensed Work
In some cases, even contractors with revoked licenses are reportedly continuing to build pools in Nevada. Investigators visited two locations where one such contractor was allegedly working, but they were unable to track him down. Without proper enforcement, these contractors operate freely, often leaving homeowners with shoddy or incomplete pools.
For homeowners, the risks don’t end once the project is finished. If you buy a house with a pool built by an unlicensed contractor, you inherit any issues that arise. Worse, the Nevada Contractors Board offers no protection or recourse for homeowners dealing with pools constructed by unlicensed builders. “The pool industry is becoming a big industry for people getting scammed, unfortunately,” said the woman whose client lost $12,000.
Protecting Yourself as a Homeowner
Given the risks, homeowners in Nevada need to take precautions when planning a pool project. First and foremost, always verify that any contractor you hire is licensed by the Nevada Contractors Board. Licensed contractors are required to meet specific standards, and their work is subject to inspection and accountability measures.
It’s also essential to resist the temptation to use the owner-builder affidavit unless you genuinely plan to manage the entire project yourself. Handing off work to unlicensed contractors not only voids the permit’s legality but could also result in significant financial losses if things go wrong.
Finally, homeowners should familiarize themselves with local permitting requirements and follow up with city or county inspectors to ensure all work meets code standards. While officials may not verify who is performing the work, you can still insist on thorough inspections to protect your investment.
