# What does it mean to be a "licensed" contractor?



## BayPointArchitect

So I got into an argument today with a self-proclaimed licensed contractor.  Within my jurisdiction, the only tradesmen that are required to be licensed are the plumbers, electricians, and HVAC contractors.  There are also licensing requirements for other specialties such as fire sprinkler contractors, alarm companies, and demolition contractors.  But the typical framer, roofer, deck builder, and general contractor are NOT required to be licensed.  We do not maintain a list for these types of contractors.

Now this old fellow did not know that I was speaking as any type of building official.  Instead he thought that I was weighing in on a botched deck project as someone who can help fix it - as a competing contractor.  That was his opportunity to say that he has been a licensed contractor in (insert city name here) for twenty years.  Furthermore, he did not see my name appear after searching through the Department of Labor's website.  He said I would get into big trouble if he reported me to the local authorities.  He told me to shut my mouth.

What I find interesting is that he equates "registry" with the Department of Labor as being "licensed".  To be sure that I was well informed, I went through the registry process myself.  It took me less than five minutes and cost me nothing.  I'm not saying that registering with the State's Department of Labor is worthless.  But I am saying that it is worth only about five minutes of my time.  Because it does not make me more qualified to build anything.

So my questions to you are simple:

(1) Does your jurisdiction require general contractors to be licensed?

(2) If so, what are the requirements for becoming licensed?  Testing?  Proof of insurance?  Bonds?  References? Continuing education?

As always, thanks again.

ICC Certified Plan Reviewer
NFPA Certified Fire Plan Examiner


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## e hilton

My company does business as property managers in essentially all 50 states, through regional and local offices.  They have one or two people who take the test and become licensed in most states, the ones that require a gc to be licensed.  I did that for WV.  The company holds the license, but i am the qualified person, i took the tests.  After i passed, the company had to put up some kind of bonds and provide proof of insurance. 

 If i leave, the company has to name another qualified person, or else their gc license expires.  If i leave, i can use my qualifications to form my own gc company, but i have to meet the insurance and bond requirements.  

The WV test had 3 parts: Business law, general construction, and ibc.   I think almost anyone can take the tests.  To me the code part was by far the hardest.  As far as i know, my test scores do not expire, and there are no continuing ed requirements.  

The company also asked me to sit for the exam in NM.  Couldn’t do it. One of the requirements is that you have to have 2 yrs of cnstruction experience within past 5 yrs, and it has to be verified and signed off by the employer.  I have the experience, but it was many years ago.  My current role as a project manager / owners rep does not meet the requirements because its not as an employee of the contractor.


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## TheCommish

Massachusetts has a number of licenses, the trades, plumbing, electrical, gas the Construction Supervisor license up to 35,000cf  1 & 2 family home are exempt from the  35,000cf cap, unrestricted CSL, and specialty licenses; roofing, siding, and windows,  masonry, solid fuel appliances. The licenses all require some time in the trade and passing a written tests with continuing education requirements for renewal. complete information linked here

Also if you are working on owner-occupied  up to 3  family home you need to be a Register Home Improvement Contractor (HIC), this is consumer protection law, that has to do with contracts language requirements, right to cancel and payments. complete information  linked here

Of course, because a man's home is his castle, you can take out the permit as the home owner "supervise and doing the project yourself"  the by allowing  unlicensed and unregister work persons do the project and get in to all sorts of trouble because the work person told you what  they wanted  you to here.


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## Rick18071

In PA it depends where you work. But most places you only need to be registered to work on existing homes only and nothing for new homes or commercial. It's so little old ladies won't get ripped off but most people never know to check for this and Code Officials can't enforce it.

Anyone who owns or operates a home improvement business or who offers, performs, or agrees to perform home improvements in Pennsylvania must register with the Office of Attorney General unless they are specifically exempted1 under Pennsylvania’s Home Improvement Consumer Protection Act (“HICPA”). Any home improvement contractors who are not registered will be prohibited from performing home improvements in Pennsylvania.


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## Pcinspector1

Licensed in the municipality your working in, Business License and proof of insurance.
Certified in some fields like Home inspections. 
Home Builders Association program requiring $$, then your a certified builder.
MEP licensed, you took a test to become a master or apprentice licensed. 
Licensed: Something a contractor puts on a business card to help con the client into hiring them!

I have a fishing license so I'm licensed contractor!


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## ICE

https://www.cslb.ca.gov/

The link takes you to the California license board.  There is all one needs to know about obtaining a license.  

It has been my experience that possession of a contractor's license is not necessarily a testament to qualification.  Some of the damnedest mistakes that I have encountered were made by licensed contractors.  

The public thinks that a contractor who has a license has to adhere to rules.  The public assumes that the CSLB is riding herd on contractors. That couldn't be further from the truth.


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## my250r11

e hilton said:


> The company also asked me to sit for the exam in NM. Couldn’t do it. One of the requirements is that you have to have 2 yrs of cnstruction experience within past 5 yrs, and it has to be verified and signed off by the employer. I have the experience, but it was many years ago. My current role as a project manager / owners rep does not meet the requirements because its not as an employee of the contractor.



As E Hilton has stated you have to qualify to take the exams. Business law, and codes thru PSI. Also most cities require so sort of business license. 
No cont. ed. I REALLY wish we did.

As ICE has said just because your licensed doesn't mean you are qualified. Generally the licensed GC isn't on site. MEP have to have at least 1 journeyman on site.


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## BayPointArchitect

Thank you everyone.  Very helpful.


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## Tom Baugh

Licensing requirements in our area are by municipality. Several of the municipalities around Kansas City reciprocate with each other. Johnson County Kansas seems to have the best system of G.C. licensing in my opinion. Maintaining license requires annual documented Continuing education and maintenance of insurance.  The Johnson County Contractor Licensing agency is the division of the Planning Department responsible for issuing and tracking ten types of construction contractor licenses. There are different levels of G.C. contractor licensing for residential and commercial CG's. More here.. https://www.jocogov.org/dept/planning-and-codes/cls/contractor-management-system


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## Mark K

Licensing of contractors is considered as restraint of trade which means that the Federal antitrust laws apply unless the State has set up the system for licensing.  The Supreme Court has stated that in the absence of a state system of licensing, local jurisdictions are subject to antitrust law.  Home rule authority is not relevant.  It seems that many jurisdictions are in legal jeopardy.

Have your city attorney read Community Communications Co. v. Boulder


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## jj1289

Contractors in Connecticut use the term licensed but they are only required to have a registration for new home construction and home improvement.  In other words, pay the state money for a number.  We have a Major Contractor license which is only applicable to "threshold" structures which is defined by our state statute.


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## Ruby Smith

Contractors with a license mean they have the minimal requirement for their work as required by the jurisdiction. Being a licensed contractor avoids financial risks and other problems that may arise due to unlicensed operations. If you want to work on any project that requires labor and materials that are valued at $500 or more, you must be a licensed contractor in California. Contractors license seems to be excessive, but it is a valuable investment and affordable. When we consider the potential penalties, it is worth avoiding the problems faced by unlicensed contractors.


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## rktect 1

Registered vs licensed?  In Illinois the state may issue a license such as to architects or plumbers.  Electricians and mechanical tradesmen are not licensed through the state but are registered with each city or village that they want to work in.


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## ADAguy

Mark K said:


> Licensing of contractors is considered as restraint of trade which means that the Federal antitrust laws apply unless the State has set up the system for licensing.  The Supreme Court has stated that in the absence of a state system of licensing, local jurisdictions are subject to antitrust law.  Home rule authority is not relevant.  It seems that many jurisdictions are in legal jeopardy.
> 
> Have your city attorney read Community Communications Co. v. Boulder



Pulled a rabbit out of the hat eh? Means the "suits" are in charge of licensing subject to the contract conditions then?


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## Mark K

What do you mean by the suits?

Contractual requirements are separate from licensing.

In California the state has preempted the licensing of contractors and it is well established that the local jurisdiction can only assess local business taxes.


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## Zoeston

If a contractor is licensed, it means they have the authority to call themselves a professional in their field.


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## jar546

Zoeston said:


> If a contractor is licensed, it means they have the authority to call themselves a professional in their field.


Anyone can call themselves a professional in their field.  A licensed contractor can legally work in their field.


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## fatboy

and has met minimum requirements to get that license.


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## TheCommish

Licensed means you had the prerequisite and  past the test, it does not mean you know the code requirmenst for all situations.


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## classicT

Zoeston said:


> If a contractor is licensed, it means they have the authority to call themselves a professional in their field.


In WA, it means they have liability insurance... and that's it. Does not indicate any level of experience or knowledge.


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## Pcinspector1

This from the web:

How do you become a licensed contractor?


*In order to obtain a license you are required to:*

Show proof of insurance.
Show proof of a Surety Bond.
Provide financial statements.
Show proof of 4 years of work experience within the last 10 years in a related field.
Pass trade, business, and law exams.
Option: Work for Chris Kennedy the "Romex King", become an apprentice, this form of license is a rarity, but legit! This also sets you up for becoming an inspector in some areas.


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## Sifu

I was a licensed general contractor in a former state.  It was required, and there were multiple types and tiers.  In addition to actual testing (which wasn't impossible but did require some attention), they had insurance requirements and a homeowners recovery fund.  I liked the system, as I could work all over the state, and it did somewhat discourage the grossly unqualified from bad work and ripping people off as much.  Maybe more importantly, it provided a penalty by suspension or revocation if you behaved too badly.  (I still enjoy reading the newsletter to see who got nailed.)  I also think (can't remember for sure) that the state licensing board defined what constituted being a GC.  I did a few jobs where I was asked to be GC by out of state commercial entities who just wanted my license.  I told them no, I needed to be on site a minimum amount of time to actually be the GC and they would have to pay for it.  

Where I am now I think it is largely a joke.  Each municipality can require "registration", not sure if they can call it licensing, some have testing, some don't, some accept other municipality testing, some the ICC test.  Most collect a fee and verify some insurance.  Pretty sure some don't even bother to do any of it.  As a contractor I would need to have many, many "licenses" or "registrations".  The state "licenses" some trades but not the GC trade.  This has always bothered me, because it allows the GC to be the least qualified entity on site.  Personally, I would like to see some minimum standards and licensing that requires at least a basic knowledge and more *continuing education*.  IMO, the market used to provide a level of self-policing.  If you were really bad or ripped people off then you didn't stay in business long.  Seems today that isn't the case, which is counter-intuitive with all the interconnectedness we have.


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## Sifu

Out of my wheel-house for sure, but I would think that insurance and bonding would at least be interested in their customer being qualified.


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## Mark K

By requiring that an individual must be licensed to do some work the State can prevent the individual from doing that work if the individual has violated one of the State's rules.  Licensing thus acts to restrain trade but this is something that only a state legislature can do.


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## Genduct

Mark K said:


> Licensing of contractors is considered as restraint of trade which means that the Federal antitrust laws apply unless the State has set up the system for licensing.  The Supreme Court has stated that in the absence of a state system of licensing, local jurisdictions are subject to antitrust law.  Home rule authority is not relevant.  It seems that many jurisdictions are in legal jeopardy.
> 
> Have your city attorney read Community Communications Co. v. Boulder


Great Insight, just when I was thinking about "Licensed Drivers" vis a vis "Licensed Contractors" 
The State has the authority to determine if a person has  Insurance to assure they have the financial backing to protect another driver / passenger or the public from negligence of the operator.  They may even give them an initial TEST.  No test can really be designed to keep us from making a mistake or having an accident,  So as long as we have that financial "Safety Valve" to protect others from a loss then I guess that is all the State can do is the answer

Or who believes the State can Do More?


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## Mark K

The state has the authority, but cities and counties have much more limited authority.


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## ICE

Licensed contractors come in all shapes and sizes.  Some are competent, some are not.  Some are honest, some are not.  Some are righteous, some are bandits.  What they have in common is a license.  The license is a ticket to a decent living or permission to steal.

If the licensed contractor is inept, inexperienced and clueless, every dollar taken is a stolen dollar.  I have encountered all stripes; human nature is to remember the demons.  Angi's List should have an emoji with horns but alack and alas, making the list is making money.  Angi makes money, the contractor makes money, the AHJ makes money.....it's a crap shoot if that money bought anything worthwhile.

There are contractors that care about their fellow man.  They know where they are headed.  Their best is good enough and they deliver it always.  You can find them on a tiger's list....for free.  But then of course you would have to know a tiger and the tiger would have to like you*.....a tiger's list that's exclusive....you can't buy a seat on a Tiger list.



*Bad people tend to attract likewise, bad people.


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## Zoeston

Well, this only can be verified with time, and at the very end everyone will get what he deserves.


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## Zoeston

If a contractor is licensed, it means they have the authority to call themselves a professional in their field.


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## Zoeston

An unlicensed contractor, for example, will be unable to obtain any building permits or other permits that are required for a specific task. It has a lot of benefits from my experience, and it's always good to have. To find more about how to get a license and how the prices vary, just read that article which has all the necessary information.


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