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Nevada water authority

Truckee Meadows Water Authority: Contractor License, Guarantee and Security Rules

Rule 5 of the Truckee Meadows Water Authority calls for a contractor holding a Nevada "A" General Engineering license or the "A-19" subclassification, a Water Service Agreement and a one-year guarantee on material and workmanship after final acceptance. It allows a bond, letter of credit or guarantee tied to the required cash advance and a cash deposit or surety bond when grades are not settled. The copy read for this page is a redline uploaded in October 2024, so confirm the adopted version of Rule 5 with the Authority before relying on any term.

A project bonds form on a desk beside rolled drawings and a pen, carrying a gold surety seal, with a city skyline and a building under construction behind it

Key Decision Points

  1. The Rule 5 copy read here is a 2024 redline; confirm the clean adopted version with the Authority.
  2. Contractors need a Nevada "A" General Engineering license or the "A-19" subclassification.
  3. The applicant enters a Water Service Agreement, and the one-year guarantee is made part of it.
  4. Security can be a bond, letter of credit or guarantee tied to the cash advance, replaced with cash before construction.
  5. Easements on private land narrower than 10 feet on either side of the centerline are not considered.

Rule 5 and the Version Read for This Page

The Truckee Meadows Water Authority serves the Reno area and sets its facility requirements in Rule 5, Water System Facilities. The copy available on the Authority site is a redline file uploaded in October 2024. Its amendment footers list dates up to January 1, 2015. Some sections may have changed after that. Every term on this page comes from that redline, and the adopted version and its date should be confirmed with the Authority before a bid or agreement relies on it.

Rule 5 B.2.e(8) says the applicant must enter into a Water Service Agreement with the Authority. That agreement is the document a developer, its contractor and the surety typically read together, because the guarantee and the security terms tie back to it.

Contractor License Class: "A" or "A-19"

Rule 5 B.2.e(3) asks for a valid contractor's license of a proper classification, naming the "A" General Engineering license or the "A-19" subclassification. The Nevada State Contractors Board issues those licenses under NRS 624. A firm that holds a different classification may be qualified for other work in Nevada and still not meet the Authority's rule for water facilities.

Naming the class in the rule is uncommon among the districts in this cluster. The Las Vegas Valley Water District, for example, requires a Nevada licensed contractor without naming a class in its Service Rules. For a contractor working in both regions, the license page in each bid package is worth checking against the agency's own wording.

Stamped Plans and the Pre-Construction Meeting

Under Rule 5 B.2.e(1), plans are stamped by a Nevada Professional Engineer. Rule 5 B.2.e(2) requires a pre-construction meeting with the engineer, the contractor's superintendent and the Authority's inspector. That meeting is a practical checkpoint: it is where license, schedule and inspection expectations get confirmed before the first pipe goes in.

Contractors often use the meeting to confirm what the inspector expects at final acceptance, since the guarantee year starts from that date. Keeping the meeting notes with the bond and insurance file can help later if a question comes up about when acceptance occurred.

The One-Year Guarantee in the Water Service Agreement

Rule 5 B.2.e(6) says the contractor must guarantee all material and workmanship against defects for one year following final acceptance, and that this guarantee shall be made a part of the Water Service Agreement. Because the guarantee is written into the agreement the applicant signs, the developer and the contractor both have a stake in how it is handled.

Developers typically pass that year down in the construction contract and may ask for a maintenance bond from the contractor. Whether a particular defect falls under the guarantee, the contract or an insurance policy depends on the facts and on the terms of the bonds and policies issued.

Security Forms: Bond, Letter of Credit, Guarantee or Cash

Rule 5 B.3.d says the Authority may require an acceptable bond, letter of credit or guarantee related to the required cash advance. That security is replaced with cash 30 days before construction, so the bond or letter of credit typically bridges the period between agreement and construction rather than staying in place through the work.

Rule 5 C.1 adds a separate case. Where grades are not settled, the applicant may need to deposit cash or post an acceptable surety bond in the amount of the Authority's estimated cost of relocation. A developer whose street grades are still moving can therefore face a relocation bond on top of the advance-related security.

Easement Width on Private Land

Rule 5 C.2 says easements on private lands less than 10 feet in width on either side of the centerline will not be considered. Site plans that squeeze a main between building pads or along a lot line can run into that limit, and a redesign late in the process can push the schedule and the security terms with it.

For projects in unincorporated Washoe County, the county's own improvement guarantee and right-of-way permits sit beside the Authority's requirements, and each agency issues its own security terms.

Insurance and Bond Amounts: Not in Rule 5

The Rule 5 redline read for this page does not state insurance limits, additional insured wording or a performance or payment bond percentage for facilities the applicant installs. Do not assume a figure from another agency. Ask the Authority what the Water Service Agreement and its current submittal list require for a given project.

Work in public streets also needs right-of-way permits from the city, the county or the Nevada Department of Transportation, a separate process with its own security. Insurance placement is subject to underwriting and can vary by carrier guidelines and programs.

Before You Ask for a Quote

What to Gather

  • The adopted version of Rule 5 and its date, confirmed with the Authority
  • The draft Water Service Agreement and its guarantee language
  • The contractor's Nevada "A" or "A-19" license
  • Stamped plans from a Nevada Professional Engineer
  • The cash advance amount and the timing of the switch to cash
  • Grading plans showing whether grades are settled

What to Ask the Insurer or Surety

  • Is the redline we read the adopted version of Rule 5, and has anything changed since?
  • Will the Authority take a bond, letter of credit or guarantee for the cash advance on this project?
  • Are grades settled, or will a relocation bond or deposit be needed?
  • Does the Water Service Agreement call for insurance certificates or endorsements?
  • Do our easement widths meet the 10-foot minimum on either side of the centerline?
  • What does the inspector need at final acceptance to start the guarantee year?
Quick Answer

Truckee Meadows Water Authority Rule 5, in the 2024 redline read here, calls for a Nevada "A" or "A-19" licensed contractor, a Water Service Agreement with a one-year guarantee and a bond, letter of credit or guarantee tied to the cash advance.

Common Mistake

Relying on the redline as the final rule. The file read is a redline uploaded in October 2024, so the adopted version and its date need confirming with the Authority.

Broker Perspective

Advance-related security is replaced with cash 30 days before construction, so a bond or letter of credit here is typically short-term and the cash need belongs in the developer's funding plan.

Coverage Impact

Rule 5 does not state insurance limits, so whether a policy responds to a facility defect depends on the policy form, the Water Service Agreement and the facts.

The Same Requirement in Other States

Questions Buyers Ask

What license does TMWA require to install water facilities?

Rule 5 B.2.e(3) asks for a valid Nevada contractor's license of a proper classification, naming the "A" General Engineering license or the "A-19" subclassification. The Nevada State Contractors Board issues them under NRS 624. Confirm the current rule with the Authority, since the copy read here is a 2024 redline.

How long is the guarantee on facilities built for TMWA?

One year following final acceptance. Rule 5 B.2.e(6) says the contractor guarantees all material and workmanship against defects for that year and that the guarantee is made part of the Water Service Agreement the applicant signs.

Can we use a letter of credit instead of cash with TMWA?

For the advance-related security, Rule 5 B.3.d allows an acceptable bond, letter of credit or guarantee, but that security is replaced with cash 30 days before construction. For unsettled grades, Rule 5 C.1 calls for cash or an acceptable surety bond in the amount of the estimated relocation cost.

What performance bond percentage does TMWA require?

The Rule 5 redline read for this page does not state a performance or payment bond percentage for applicant-installed facilities, and it does not state insurance limits. Ask the Authority what the Water Service Agreement requires for your project.

How wide must a TMWA easement be on private property?

Rule 5 C.2 says easements on private lands less than 10 feet in width on either side of the centerline will not be considered. Plan main alignments with that width in mind before lot layouts are fixed.

Official Sources

  1. Truckee Meadows Water Authority Rule 5, Water System Facilities, Section B (redline uploaded October 2024), Truckee Meadows Water Authority. Nevada "A" or "A-19" license class; stamped plans by a Nevada PE; pre-construction meeting; one-year guarantee made part of the Water Service Agreement; Water Service Agreement requirement; bond, letter of credit or guarantee tied to the cash advance and replaced with cash 30 days before construction; Cash or surety bond for the estimated relocation cost where grades are unsettled; 10-foot easement minimum on either side of the centerline; redline status of the copy read Verified 2026-10-26.
  2. Las Vegas Valley Water District Service Rules (effective January 1, 2026), Las Vegas Valley Water District. Comparison: a Nevada water district that requires a Nevada licensed contractor without naming a class Verified 2026-10-26.
  3. NRS 624.700, contracting or bidding without a license, Nevada Legislature. It is unlawful to engage in the business or act in the capacity of a contractor, or to submit a bid on a job in Nevada, without an active license under chapter 624, unless exempt. Verified 2026-10-26.

Reviewed by the Principal, Gleason Insurance Brokers, LLCUpdated

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