Answers to your questions about remodeling and construction
Your home is your castle. A contractor can be a trojan
horse waiting to be invited inside the gates of your
castle.
Beware of Contractor provides answers you need to questions about construction issues. No one can provide you total protection but with knowledge and
information, you can take steps to protect yourself.
Homeowners and consumers face any number of almost impossible tasks when it comes to their homes. For most
people, their home is their single biggest investment. It's also their largest debt. Your home is critical to your family and its well-being. It ages. It needs repairs. At times, it needs remodeling or an addition to meet the needs of your family. Sometimes you just want more comfort or a more efficient building system to live in. These days there are too often serious problems with even a newly constructed home.
Learn about the potential problems before you get into a repair or construction issue. Whether your issues are the result of a disaster, a repair, an update to your home or a full remodel, or purchasing a newly constructed home, being informed is one of the best protections you have against any contractor, especially an unscrupulous or dishonest one.
Not all contractors are bad. There are many good contractors, but even a good contractor can have a bad project.
We have all seen them. Advertising mailers, TV ads, magazine ads or signage on a truck......"Licensed, insured and bonded." What does this really mean?
First, don't believe any answer you get without proof. I cannot tell you the number of times I have received phone calls from salespeople who tell me they are working in my neighborhood and can do any construction project. I ask if they have a state license and their company name. Inevitably, most every one has told me that they are licensed by the state. While they were on the phone, I checked online. When I tell them that they are not licensed by the state, I get a variety of responses (some too rude to mention here), hang-ups, outright lies and claims that they are licensed, backtracking and then claiming that they mean a local business license. So let's talk about Licenses.
Not all contractors and construction people are required to have state contractor's licenses. There are a number of "exemptions". It is confusing, even to those in construction.
State contractors licenses are needed to perform many remodeling projects but not all projects. A state contractor’s license is issued by the State of Georgia to reflect that the company meets the minimum standards set by the state to perform that type of construction. ALL state licensed contractors have a pocket card to show you and that you may check their license online at the Secretary of State's office to confirm their licensed status (the license should be in the company that actually contracts with you-not the owner, not a "buddy", not a related company). Additionally, many contractors have professional certifications which reflect their dedication and training to certain types of projects but are not state licenses. ALL contractors and businesses must have a local business license for occupational tax purposes and is NOT a state contractor’s license. The phrase “Licensed and Insured” (or variations like “licensed and bonded”) does NOT mean that the contractor holds a state contractor’s license. Do not let the phrase “Licensed and Insured” mislead you. If your project requires a state contractor’s license, be sure your contractor has the required state contractor’s license.
If a contractor is claiming they are "licensed" and they are referring to their business license, who are they trying to mislead?
Business License or Occupational Tax License.
Every business should have this license and should be able to provide you a copy. If they don't have it, they may not be paying taxes to their local authority. THIS is NOT a state contractor's license. It is not a professional occupation license. It is merely a license issued to any business who submits the right form and a check in the right amount. I have a business license. Some business licenses also indicate a "profession". This is self-reporting and is generally not verified by the local agency, although some have become more sophisticated and have started asking for a state contractor's license if the contractor seeks a business occupation license for a licensed profession. But note: The state contractor's license is the REQUIRED prerequisite license.
State Residential or General Contractors License
Certain contractors who perform remodeling or new home construction, basically anything to do with the building structure should usually be presumed to be required to have a state license. They have a "pocket card" they can show you. You can look up their state license information on websites for the State of Georgia. Contractors who have a state license should be able to provide a license number that begins: RB (for Residential Basic), RLC (for Residential Light Commercial) or GC (for General Contractor). Any of these state licensed contractors may perform construction work on single family homes other than work which requires a license under Chapter 14 (explained below). Be sure to have the contractor specifiy in their contract with you that they are state licensed and their license number.
Another clue your "contractor" may not hold a required state contractors license: They recommend that building permits not be pulled. Building permits are not OPTIONAL and many require they show a state contractor's license. Check with your local building officials to see if a permit is required and if so, is a state licensed contractor required. Building permits help to protect you and if you do work without a building permit, you may be required to disclose that at the time of sale of your home (and you may lose value in your home).
horse waiting to be invited inside the gates of your
castle.
Beware of Contractor provides answers you need to questions about construction issues. No one can provide you total protection but with knowledge and
information, you can take steps to protect yourself.
Homeowners and consumers face any number of almost impossible tasks when it comes to their homes. For most
people, their home is their single biggest investment. It's also their largest debt. Your home is critical to your family and its well-being. It ages. It needs repairs. At times, it needs remodeling or an addition to meet the needs of your family. Sometimes you just want more comfort or a more efficient building system to live in. These days there are too often serious problems with even a newly constructed home.
Learn about the potential problems before you get into a repair or construction issue. Whether your issues are the result of a disaster, a repair, an update to your home or a full remodel, or purchasing a newly constructed home, being informed is one of the best protections you have against any contractor, especially an unscrupulous or dishonest one.
Not all contractors are bad. There are many good contractors, but even a good contractor can have a bad project.
We have all seen them. Advertising mailers, TV ads, magazine ads or signage on a truck......"Licensed, insured and bonded." What does this really mean?
First, don't believe any answer you get without proof. I cannot tell you the number of times I have received phone calls from salespeople who tell me they are working in my neighborhood and can do any construction project. I ask if they have a state license and their company name. Inevitably, most every one has told me that they are licensed by the state. While they were on the phone, I checked online. When I tell them that they are not licensed by the state, I get a variety of responses (some too rude to mention here), hang-ups, outright lies and claims that they are licensed, backtracking and then claiming that they mean a local business license. So let's talk about Licenses.
Not all contractors and construction people are required to have state contractor's licenses. There are a number of "exemptions". It is confusing, even to those in construction.
State contractors licenses are needed to perform many remodeling projects but not all projects. A state contractor’s license is issued by the State of Georgia to reflect that the company meets the minimum standards set by the state to perform that type of construction. ALL state licensed contractors have a pocket card to show you and that you may check their license online at the Secretary of State's office to confirm their licensed status (the license should be in the company that actually contracts with you-not the owner, not a "buddy", not a related company). Additionally, many contractors have professional certifications which reflect their dedication and training to certain types of projects but are not state licenses. ALL contractors and businesses must have a local business license for occupational tax purposes and is NOT a state contractor’s license. The phrase “Licensed and Insured” (or variations like “licensed and bonded”) does NOT mean that the contractor holds a state contractor’s license. Do not let the phrase “Licensed and Insured” mislead you. If your project requires a state contractor’s license, be sure your contractor has the required state contractor’s license.
If a contractor is claiming they are "licensed" and they are referring to their business license, who are they trying to mislead?
Business License or Occupational Tax License.
Every business should have this license and should be able to provide you a copy. If they don't have it, they may not be paying taxes to their local authority. THIS is NOT a state contractor's license. It is not a professional occupation license. It is merely a license issued to any business who submits the right form and a check in the right amount. I have a business license. Some business licenses also indicate a "profession". This is self-reporting and is generally not verified by the local agency, although some have become more sophisticated and have started asking for a state contractor's license if the contractor seeks a business occupation license for a licensed profession. But note: The state contractor's license is the REQUIRED prerequisite license.
State Residential or General Contractors License
Certain contractors who perform remodeling or new home construction, basically anything to do with the building structure should usually be presumed to be required to have a state license. They have a "pocket card" they can show you. You can look up their state license information on websites for the State of Georgia. Contractors who have a state license should be able to provide a license number that begins: RB (for Residential Basic), RLC (for Residential Light Commercial) or GC (for General Contractor). Any of these state licensed contractors may perform construction work on single family homes other than work which requires a license under Chapter 14 (explained below). Be sure to have the contractor specifiy in their contract with you that they are state licensed and their license number.
Another clue your "contractor" may not hold a required state contractors license: They recommend that building permits not be pulled. Building permits are not OPTIONAL and many require they show a state contractor's license. Check with your local building officials to see if a permit is required and if so, is a state licensed contractor required. Building permits help to protect you and if you do work without a building permit, you may be required to disclose that at the time of sale of your home (and you may lose value in your home).