Managing designs, estimates, bids and budgets of 26% for more predictable projects is essential for any home repair contractor. It is important to put the right people in the right jobs and track their productivity in real time. With Procore, you can boost projects by uniting teams with relevant financial information and learn from the data captured to align stakeholders. You can also put your risk data to work to obtain the insurance conditions you have earned and create workflows that reveal information, protect margins and boost growth.
Licensing for contractors is one of the most initial steps important to becoming a legitimate construction company. Having the right license lets your customers know that you are a professional with a certain level of experience and helps protect their payment rights. Most states require contractors to have a license by law, and working without a contractor's license is illegal in some cases. But what license do you need? What are the contractor licensing requirements in your state? What do you need to do to operate your construction business the right way? At first glance, a contractor license may seem like just another obstacle to starting a business.
However, there are plenty of reasons why having the right license is important. Most of these reasons are to ensure that the contractor is capable and responsible at several different levels. Construction isn't the only aspect of running a contracting company; contractors must also conduct fair and ethical business, and states must ensure that they do so to protect consumers. Between the trade and business sections, contractors must prove their worth to carry a license and contract with the public.
One of the most important reasons why contractors must carry licenses is for security reasons. State regulatory boards want to ensure that the contractor knows the proper thicknesses of the headers, how to wire an electrical panel, how to ensure that a gas water heater works properly, and how to handle many other potentially dangerous situations. The state gains a foundation on the contractor's industrial knowledge by testing the contractor's business knowledge. Contractors who don't have licenses may very well know what they're doing, but there's no proof of that at the state level.
For that reason, states will track unlicensed contractors, close their jobs, and force them to pay fines before applying for a license. Hiring is highly regulated, and one of the best ways states can keep track of individual contractors is by licensing. States want contractors to have certain insurances, such as liability insurance and workers' compensation insurance. Some states and cities also require contractors to obtain bonds.
By making these regulations part of holding a license, the state can ensure that all new contractors are in full swing. In addition, by requiring contractors to renew their licenses every one, two, or three years, the state can also ensure that they meet those requirements. From the contractor's point of view, another good reason to have a license is to protect your lien rights. Some states that require contractors to hold licenses do not grant lien rights to unlicensed contractors.
An unlicensed contractor might do an excellent job and treat his client like gold, but he might have bad luck if the customer doesn't pay. And even if unlicensed contractors can file a mechanical lien, it could be problematic if they need to collect their lien or enforce it. If they have to take the customer to court and they don't carry the license required by the state, the court may not examine their claim so lovingly. States often have different types of subcontractor licenses for certain trades.
A general contractor license is a requirement in many states for anyone taking on the main contract for a construction project. In some cases, it depends on the value of the project, and this threshold determines whether or not a general contractor needs a license. Some states also require separate licenses for commercial and residential work; in those states, general contractors must test and maintain eligibility for both licenses if they want to make both types of contracts. General contractors may also need to have a license bond.
The requirements surrounding a specialized contractor or subcontractor license vary widely from state to state; some states require nearly all subcontractors and specialists to hold and maintain a license while others are much more relaxed and leave licensing up to individual municipalities. The process of obtaining a license is usually quite rigorous; you must meet certain requirements including experience, insurance, and education; you may also need another merchant to answer for you; most importantly obtaining a license generally requires you take and pass an exam or prove your work history. Certifications are generally not required in most states unless a certain aspect of your business has environmental health or safety impacts such as removal of asbestos or mold; while environmental agencies and commercial organizations teach certification courses many contractors' certifications come from private companies; for example a particular window manufacturer can....
