While the requirements and laws regarding a contractor’s
license vary slightly from state to state, most states have requisites
(and penalties) that mandate certain procedures for working as a
contractor and for getting a contractor’s license:
1. A contractor’s license is mandatory. You cannot work without
it, and if you do do a construction job without a license, you can
suffer in two ways: a) you can be penalized with a monetary fine; and
b) you can be taken advantage of by a client who doesn’t pay—and since
you are not licensed, will have no leverage (won’t be able to sue, for
instance).
2. To get a contractor’s license, you usually have to take and pass a
written exam that shows your knowledge of the construction business,
the laws involved, and the specifics of the construction skill sets
necessary for a contractor to know.
3. Applying for a contractor’s license exam, therefore, typically
requires that you
a) are at least 18 years of age
b) have a high school diploma or equivalent
c) are a legal citizen of the U.S. and can provide proof
d) provide two passport photos
e) provide documentation for any other licenses (occupational) you have
f) provide explanation for any construction-related citations, liens,
or violations you have against you
4. In addition to the above requirements, to work a construction
job, you may be called upon to
a) provide proof of financial ability
b) provide letters of reference
c) provide proof of prior construction experience
d) post a state license bond
5. And special requirements are involved for special
circumstances:
a) If you are incorporated, you must register with the Secretary of
State.
b) If you bid on a state project/job, you will likely be expected to
pre-qualify.
So, depending upon the state in which you reside and/or work, you will
have to meet the requisites involved with getting, keeping, and using a
contractor’s license. And you may have to carry a business
license as well as the contractor’s license, will have to heed the
protocol of the tax authority in the state in which you work, and must
carry both liability and worker’s compensation insurance. Such
are the current demands of such demanding professionals as asbestos and
lead abatement contractors, electrical contractors, plumbing
contractors, and any others who work a state’s buildings, highways,
roads, railroads, parking facilities, excavation sites, and
more.
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