“Buyer beware” has been the traditional mantra for Georgians who contract to have work done on their homes. In the past it has been the sole responsibility of the homeowner to establish whether a contractor has the ability necessary to perform the desired work. Unfortunately, if the work was unsatisfactory there was often little recourse.
Recently, however, the state has taken steps to help protect the public from unqualified general contractors. This protection comes in the form of the State Licensing Board for Residential and General Contractors. This board has established licensing to “regulate individuals engaged in construction contracting.”
If you are considering having work performed on your home, it is a good idea for you to understand the law that regulates your contractor.
● The licensing law went into effect July 1, 2005; however, a license was not required until July 1, 2008. Anyone you hire now must have a license.
● Does the law cover all work? No, the law does not apply to projects costing less than $2,500 dollars.
The law also does not apply to contractors already holding licenses from the Georgia Construction Industry Board, or to repair contractors and certain specialty contractors.
As it applies to residential construction projects, trades licensed by the Georgia Construction Industry Board are electricians, plumbers and HVAC contractors.
Repair contractors are restricted to projects that fall under the “Repair Rule,” which defines “repair” as “fixing, mending, maintenance, replacement or restoring of a part or portions of a real property to good condition.”
The definition of specialty contractors is more difficult and the list is long. However, some examples of specialty contractors are roofers, painters, rough and finish carpenters, kitchen designers and installers, masonry contractors and siding installers.
● What is required of a contractor to be licensed? Starting July 2, 2007, all applicants for licensing must complete a two-part exam consisting of a practical section and a business and law section.
● Can I act as my own general contractor? Yes, homeowners can act as their own general contractors without being licensed as long as they will occupy the structure themselves. That means the structure cannot be constructed for sale or lease. If a person does sell or lease a structure constructed under the “owner provision,” they cannot construct another project without obtaining the appropriate license for two years.
● What else does the law require? In addition to testing, a licensed contractor must maintain insurance. The insurance limits are $300,000 for the residential-basic license and $500,000 for the residential-light commercial and general contractor license categories. A contractor holding the general contractor license must also show a minimum net worth of $150,000.
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