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5 Common Questions About Contractor Licensing Answered

Want to be a successful contractor? If yes, you’ll have a lot of learning to do and a lot of highly significant skills to master. You, however, know that already. Excelling in this business requires you to constantly strive towards providing your clients with the best possible services, as well as towards establishing yourself as a trusted professional on the market. Read more about what great contractors have in common.

One thing that great contractors have in common is the fact that they are all properly licensed to perform the necessary work. If you’re planning on working without a license, you should get ready for some troubles. Among other things, you’ll be highly unlikely to get as much clients as you would like, as people don’t really like working with unlicensed professionals, since that carries higher risks for them.

If you’re new to this world, though, it is completely normal for you to be confused about the entire licensing process, as well as about the importance of it all. In short, you’re bound to have quite a lot of questions about this on your mind. Questions the answers to which will help you get a clearer idea on everything and then decide how to proceed and what to do about licensing. Questions I’ll answer for you below.

  1. What Is Contractor Licensing?

Every contracting project requires a lot of planning, coordination, as well as experience. Local, state and federal governments have, therefore, imposed certain rules and regulations that contractors have to follow and codes that they have to adhere to so as to perform the work in a safe and successful manner. When all of those imposed requirements are met, a contractor can get a license to perform.

Apart from the federal requirements, each state has its own requirements to keep in mind, and the city may sometimes impose some of those as well. In some cases, a license is required only for those contractors that are bidding on projects that exceed specific amounts. In any case, checking all the rules on the federal, the state and the local level is necessary if you want to get the license.

  • What Are the Types

In short, a contractor license is granted to those contractors that have extensive skills and experience in this field and that have, of course, met those board requirements mentioned above. Among the FAQ’s about licensing, one stands out as highly important and it is related to the types of licenses. Basically, contractors are divided into 3 licensing classes.

Class A entails general engineering contractors, responsible for overseeing public work and consisting of several subcategories. General building contractors are in Class B, and their responsibility is to oversee, manage and coordinate an entire project. Specialty contractors, which are in Class C, handle smaller specific tasks that are parts of a larger project. All of these classes have their own licensing requirements to meet.

  • Why Is It Important?

If you’re now wondering whether you really need this kind of a license and why it is so important, let me explain. First things first, by getting it, you’ll show that you’re in compliance with the law, which is absolutely significant. And then, it can also make your entire business more profitable.

How can it make your business more profitable, though? By providing you with several benefits. First off, it will give you a boost in credibility that you’ll absolutely need if you want to land clients. Then, you’ll become eligible for certain larger and higher-paying projects, which is also a huge plus. Put simply, if you really want your business to achieve great success, you’ll undeniably need to have a license.

Speaking of, here’s a great success story that may motivate you: https://www.cnbc.com/2016/11/02/how-a-31-year-old-general-contractor-built-a-multi-million-company-in-2-years.html

  • So, Should You Get It?

The above made the importance of contractor licensing clear, but you may still not be sure whether you should actually get it. While this is a decision that only you can make for yourself, here’s what you should know. If you want to be able to land clients, and serious ones for that matter, and if you want to be eligible for those larger projects that bring in more money, you will absolutely need to get this license. So, the simple answer is this. Yes, you should get it.

  • How to Get It?

Wondering how to get it, though? Well, the process may seem a bit complicated if you’re doing it for the first time, but it is actually pretty straightforward. You start by determining what kind of a license you actually need, and then proceed towards checking the requirements for it and meeting those. After that, you’ll have to choose and get a contractor bond and liability insurance, fill out the licensing application, pass the necessary exam and obtain the license you are after.

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