Thursday, May 6, 2010

Do I need a License?

Some people have sent in questions on what type of work needs an actual contractor's license to perform. For the benefit of our readers, I have summarized below what types of works needs a license and what are some of the exceptions.



Do I need a license?

If you are any person, business or consultant
and any of the following, "You Need a Contractors License"
Working in all or any project 
  • new construction
  • remodeling
  • renovation
  • altering
  • moving
  • wrecking 
  • demolishing
performing work on any 
  • building
  • highway
  • road
  • parking facility
  • railroad
  • excavation
  • structure
Project, development or improvement must be licensed as a contractor if the
  • Total cost of labor and materials for a project is $500 or more.
A license is also needed to do any of this work as a subcontractor or specialty contractor. There are several exemptions to licensure, that is, situations where a license is not required. Some of these exemptions are:  Work for which the combined value of labor, materials and all other items is less than $500; employees working for wages who do not customarily engage in independent contracting or control the performance of the job; owner-builder with certain limitations; installation or sale of finished products which do not become a fixed part of the structure with certain exceptions, for example, carpets.


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