• SAFETY - Licensed Contractors (LCs) need to be 'Building Code' experts, with a commitment to building to code. Building Codes are a complex legal standard that are constantly undergoing improvements. To be eligible for licensure, LCs have to meet state requirements to prove that they're:
  • sufficiently knowledgeable
  • understand construction means and methods
  • can keep everyone safe, both during and after construction
    
• PERMITS - LCs can (and are required to) pull permits for their work. It's to protect the owner and the public from dangerous or non-code compliant work.
• INSURANCE (both home owners' and contractors' insurance) will only cover claims if the contractor is licensed - If a license was required by law for the work being done. Active insurance ≠ valid insurance.
  
• INSPECTIONS - The work will be independently inspected by the city/county and will be checked to meet code. This is solely in place to protect the owner/end user. Inspections are not for the benefit of the contractor. Contractors that indicate permits and inspections aren't necessary are doing it to cut corners.

1. They offer to do the work without pulling permits
2. They say they'll 'borrow' someone's license for the project to pull permits; this is illegal.
3. They present a BUSINESS LICENSE instead of proof of a GA STATE ISSUED CONTRACTOR'S LICENSE
4. Their license can't be verified. If they do not show up personally or company wise on the state website, they are NOT LICENSED. There is no other secret way to be licensed to build.

Anyone offering more than $2,500 worth of work §43-41-2(9)

or

$10,000 for Specialty Trade Licensed Contractors offering work outside of their trade §43-41-17(f). (Electricians, plumbers, HVAC, etc.)

Example: An electrician offering to replace drywall or a plumber replacing tile that was impacted by their primary work.

Market research indicates: Company vehicles with "Licensed & Insured" printed on the side, or business cards, websites, and flyers stating it... Most of the time, it's a boldface lie.

Fact: Most contractors claiming to be L&I in Georgia ARE NOT licensed... at all; also in most cases their Unlicensed status invalidates their active general contractor insurance, if a claim was to be made.

A BUSINESS LICENSE is not a GA STATE ISSUED Contractor's license!

• Be affiliated by full-time Employment or Ownership with the Contracting Entity §553-4-.03(1)
• Entity must hold the Contract directly with the owner. § 43-41-2
• Have at least one (1) licensed person in the business who is actually engaged in the practice of general contracting for that specific business organization or entity. §553-4-.03(1)
• Provides adequate supervision and is responsible for the projects of such business organization or entity. §553-4-.03(1)
• Be Responsible to Supervise, Direct, Manage, and Control construction activities on any project for which he or she has obtained a building permit. Put simply, the Licensed Contractor can’t be an outside company or person that pulls the permits and doesn't actively manage and supervise the project. That constitutes unlicensed work, even if a licensed contractor pulled the permit.
• Licensed Individual Permit Applicant must have final approval authority for all construction work performed by the business organization.

• Licenses must be held individually or by LLC/Company

• Whoever holds the license, must also hold the contract with the owner, in the same legal name.

A MISUNDERSTOOD LEGAL WRINKLE...

• Individuals cannot license an LLC/Company without separately applying to be the company's QUALIFYING AGENT.
• It's a separate license and it grants the company its own license number.
• If construction contracts are with an LLC, and that LLC/Co doesn't hold its own license, work is considered UNLICENSED, even if the company owner is personally licensed. How crazy is that? I don't write the rules.

LLC/Company held License (Contract name must match license holder):

• Follow this link to VERIFY A COMPANY

Individually held License (Contract name must match license holder):

• Follow this link to VERIFY AN INDIVIDUAL

Anyone who has a Contract with an Owner for Construction Work

Any Person or Entity offering construction or construction management services who is at risk contractually to the owner (by contract) for the performance and cost of construction. §43-41-2

• Handymen & women providing work under $2,500
• A person/company offering Repair Work. §553-8-.01
  • Must disclose in writing to the Owner that they are Not Licensed before the work
  • Work must be supervised and performed by the entity who signs the contract
  • Cannot Subcontract by delegating the work to non-employees or others
  • Must obtain Permits and Inspections as required
  • Work cannot affect life safety or Structural Integrity and fall under the classification of work to be performed by a licensed contractor
  • Insurance → Confirm handyperson performing repairs has correct type of insurance that is valid under non-licensed work.