New rule change this year by the Arkansas State Contractors Board .
Any person involved in” contracting ” with a said amount of 20,000 thousand dollars or more material and labor in commercial must be lisensed as per the requirements of this board. new rule> In the event the prime contractor or owner should buy the material, only labor will be counted in said 20,000 dollars . [or something to that effect since Im not coping out of the text.
If there were two partners unofficially that bid separate that amount could be increased to 40 thousand with two contracts which could be pulled off on something like a church that was trying to save money.
Ive done a lot of commercial sub contracting and often would be nubbed by the old rule. The boys should like it a little better now.
Feed back from your state ?
Tim Mooney
Edited 8/10/2004 8:58 pm ET by Tim Mooney
Replies
MA requires a license for contractor performing $5000+ of work.
Renaissance Restorations
Antique & Victorian Home Restoration Services
http://www.renaissancerestorations.com
It's kind of a scam in MA, isn't it? I looked into it and all you really have to do is pay off the state and, bam, you're a registered contractor. Clients really think you have to pass a test or something to get the reg.
I know it's a little different for a contruction sup. license; I'm talking about the basic GC reg.
Is it like that everywhere else?
Here in Michigan you have to have a Builders Licence to do anything over $600. I think there is some exception for projects that you work as an hourly contractor and don't pull the permit.
Actually in Massachusetts a home improvement license is required for anyone doing more than $1,000 worth of work in a calendar year. Not sure what the cutoff is for the construction supervisor's license.
-Ray
Again, huh-I thought it was required for anyone who did any "bona fide" job for over $500. I suppose I should look closer.
"It's kind of a scam in MA, isn't it? I looked into it and all you really have to do is pay off the state and, bam, you're a registered contractor. Clients really think you have to pass a test or something to get the reg. "
I would like to respond to that .
I had a talk with a state investigator last week about the same subject with the State Contractors Board.
That very subject was brought up by me.
The contractors test is on business law , not how to do the work such as mechanical lisenses. The requirement after the test is to be "bonded" , "liability insurance", and maintain a positive net worth in the bank at all times . The amounts are different as to the class of license desired. A trade lisense such as trim carpentry starts at 5,000 dollars and goes up. The amount of bond also goes up with the dollar figgure of jobs you bid. A positive financial statement is required for the past three years and also Income tax returns if requested.
The above is to protect the public , not to gage quality. My thought would be that chances are good that anyone that hires a state liscensed contractor that has surely met the above credentials would be legit. The customer has somthing more than a contract to fall back on and of course the customer pays extra for that security of the added responsibility the contractor bears.
There is a lot to say on this subject .
The conditions above make it almost impossible not to get payed working as a sub under one of these contractors iif the sub or employee have done their job correctly with out negligence . So , the customer and the employee are then covered .
If I did a job here under 20,000 for such a contractor and perform my contract to legal leaps and bounds , I will get payed with the exception of bankruptsy. Its then good that the little guy can breath easier working for a state licensed contractor in this state.
I gave the above examples because it fits a lot of us here .
Tim Mooney
Huh, I must have misunderstood the application then. It doesn't really apply to me because I do only small jobs on weekends and nothing has ever gone over $400. But clearly I'd have to look into it deeper should I step up production, so to speak.
Thanks for the update.
RE: Scam
After what I've seen in the past year or so, I tend to agree on the "Scam" issue. For the Home Improvment Contractor Registration in MA, all they basically want is one's money. The Construction Supervisor License issue is another thing. Take a course taught by a state approved firm, folowed by a 4 hour exam, and more $fees$.
One issue I've seen, is if a client gets shafted by a contractor in MA, and they didn't have a contract with specific provisions mandated by the State of MA, and if that contractor is not registered with the state, then they basically have no recourse with filing a claim with the state, and have to go the small claims/etc route. MA has a guarantee fund that contractors pay into for claims, but getting claims settled is a horrow show from what I've heard.
On a side issue, both CT and RI require proof of liability insurance on no license. They also have on-line database's of contractors, as well as a "bad contractor database" which is updated on a regular basis.
IMHO, Massachusetts needs to crack down on the number of unlicensed and unregistered contractors which seem to be growing in number..Renaissance RestorationsAntique & Victorian Home Restoration Serviceshttp://www.renaissancerestorations.com</P
In WNY, licensing is done by individual towns/cities. I only do jobs for friends and word of mouth referall in towns where licensing is not necessary. All of my work is weekends since I took employment full time however I maintain ins. and corp. status. The licensing is only required in various towns. Also, I have built homes for owner/builders (lack of knowledge makes it a pain in the a@@ but when they make a change, $$) and nothing is required for them to get a permit other than a licensed electrician and plumber as long as they are listed as the GC on the permit. Kind of odd seeing as though this state has its hand in everyones pocket on everything else. On any work that I do that does require permits, I simply have the homeowner apply as the GC.
In Oregon, anything over $2500 requires a written contract, a "Limited" license allows up to $30K (labor) per year, over $30K requires a general contr. license. And I believe a limited is limited to 5 SIC codes of work.
License requirements involve some classes involving business, taxation issues, workers com, safety, building codes, etc. Nothing about actual building practices or skills.
Some parts of the system are annoying, but, ultimately, if you play by the rules and apply yourself to good craftsmanship, customer relations and strive for constant improvement, you will do OK at the very least.
I'm somewhat libertarian by nature, but I rejoice when the hacks and fly-by-nighters are exposed and put out of business or put in jail.
For me, the licensing issue is nothing compared to the liability insurance problem that, at least in Oregon, is putting some very competent builders out of business.
Meanwhile, building is booming out here in one of the worst areas in the country for unemployment. I'm just a small guy with a small crew and I'm booked for the next 12 months, as is anyone else here who has a good history. No need to waste money on signs, advertising or truck logos!
In a former life I worked as a general super for a medium sized GC operating in the southeast.
Only inspector that ever gave me any problems was Fire Marshal and Elevator. Happened on several different jobs and couldn't ever make them both happy at the same time.
One particular incident involved a wooden accordion door used as a passthru in the serving line at an old folks home. Common corridor on back wall of serving area, one hour rating, and it was FM's interpretation that the accordion door in the interior, unrated wall should be a 20 min door. Yes sir, no argument (heated, polite, discussion), spent three weeks sitting on that job waiting for new unit, Ke Sera Sera.
Best Regards