With a license, you have a significant competitive advantage in the home renovation market and other construction and renovation contracts. More and more owners are becoming savvy and opting for licensed general contractors. Licensed entrepreneurs are subject to laws passed to protect consumers. You will find links to an article for each state a little further down this page. Some states have complex requirements and processes for obtaining a license, but the following articles should answer all your questions and guide you through the process. You can also visit our „Toolbox“ page to get useful resources that every general contractor should know. DIYers also need a certificate of insurance worth at least $50,000 for bodily injury to a person, $100,000 for more than one person in a single accident, and $10,000 for property damage in a single accident. Take a look at our breakdown of contractors` liability insurance and make sure you have full coverage before you start your projects! Various other criteria determine whether a contractor can be licensed in each state. B e.g. own funds, proven financial literacy, maintenance of a bankruptcy bond, minimal experience and generally commercial and commercial audits. The procedure often takes several months.
New licensed general contractors have worked under the direction of another licensed contractor and have identified the things they need to do (or what they shouldn`t do!) Your experience working for someone who has done all the wrong things and knowing that you could do better can lead you to get your contractor license. You could potentially start a brand new fully licensed business by mixing your own license and credentials with other licensed general contractors. You may want to recruit education students as well as unlicensed professionals in the construction industry. In general, all published marketing materials such as business cards, newspaper ads, and phone book ads should display your contractor`s state license number. Unlicensed contractors will attempt to create workarounds to reduce costs below project costs that trigger the mandatory use of an authorized contractor in a certain state. They will do this to preserve the construction work, although this may mean breaking the law. This is simply not good business practice. More and more consumers (with the help of government agencies that want to protect the public from fraudulent businesses) have begun to stay away from anyone who offers to perform construction work or special work that does not have a contractor`s license.
Operating in the district without a proper permit can result in a Class 1 violation, resulting in a fine of at least $2,000 for the first offence. If an unlicensed subcontractor is used, a Class 1 violation may be issued to both the authorized contractor and the unauthorized subcontractor. In addition, all subcontractors (including plumbers and electricians) hired by the general contractor or construction manager must be duly authorized and registered in accordance with The Law of the District of Columbia, usually by the D.C. Board of Industrial Trades. You can search for a licensed contractor in Virginia in 3 simple steps: If you are paid to supervise and coordinate the work of design professionals and/or multiple general contractors overseeing their specific projects and operations, you are considered a construction manager and you also need to have a license to have a general contractor/construction manager in Washington DC.