Becoming a licensed contractor is a great way to expand your business and get the opportunity to work on bigger construction projects. To become a licensed general contractor, you must first pass an exam as well as complete several other requirements, depending on your state.
Due to the cumbersome nature of taking exams as well as paying fees, some contractors opt to work without a license. This might be okay for some smaller handyman jobs, but for anything bigger you could pay consequences. Working without a license can lead to working in possibly dangerous and illegal scenarios that can compromise your safety and ability to work.
Read on to learn 5 reasons why general contractors licenses and why getting one is worth it.
Table of Contents
1. It’s the Law
Every state requires general contractors to have a license. But each state is different as to where the line is drawn between legally and illegally doing handyman work without a license.
If you’re considering contracting without a license, you’re going to be extremely limited in what services you can actually provide. Be sure to read up on your state, county, and city ordinances so you can make sure you are on the right side of the law.
If you get caught operating illegally, there can be some serious repercussions. For example, in the state of Florida, contracting without a license can get you fined up to $1,000, put on probation, or jail time for up to one year. And if you get caught a second time, you can end up with a 5-year jail sentence.
These kinds of punishments are hardly worth the risk when compared to the requirements for getting a license.
2. It is Educational
When you pass the exam to become a licensed contractor, you will not only be proficient in the process of construction based on the Uniform Building Code, but also in law and business.
Passing the exam will ensure that you have a thorough understanding of the correct way to perform construction on various projects. You’ll also walk away with proper business practices.
3. It is Passable
There are companies such as Contractor Training Center that operate in multiple states and offer training and test prep for a variety of licenses. Their goal is to help people pass their contracting exams the first time. They do this by utilizing teaching practices such as live seminars, webinars, prerecorded lessons, and training quizzes.
Because each state has its own requirements and qualifications, you are going to want to do your research and see which exams and licenses are required for your location of business. The best way to find the answers you need is to contact your local planning and development board or contractors’ state license board.
Online research is helpful, but speaking directly with people who are involved with the licensing process is the best way to get the most up to date information on how to take exams.
4. It Will Bring You More Customers
Thanks to the proliferation of online reviews and social media, customers are becoming more dependent on their own online research to find businesses with good business practices. Being licensed gives you a leg up as it proves your knowledge and competence. It’s a great thing to brag about!
Another big bonus of being licensed is that it means you are insured. This is extremely appealing to customers. If an uninsured contractor falls or has an accident on a client’s property, they can potentially sue the homeowner for damages. An insured contractor doesn’t bring this risk.
5. It Makes You A Better Service
Getting a general contractors license may seem like an unnecessary expense at first. But after you consider its benefits, as well as the ramifications of not having a license, you should realize that it’s totally worth it. It makes you more professional and open to clients. Why shut yourself out from more business?
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