The Importance of Getting a Contractors License in Construction

There are about 9.9 million people in the construction industry in the United States. However, how will people know you are a qualified and trustworthy construction worker?

A contractor’s license will ensure people that you have the skills and services of a professional. Not only that but it may also be illegal in your country as it may compromise the quality of homes. There are many scammers endangering homeowners and you don’t want them to think that you are one of them.

So read on to learn why it’s essential to have a license before offering and accepting construction jobs.

Boost Your Credibility

Credibility is a much-needed factor for your construction career. It not only builds the trust you have with clients but also provides better business relationships in the construction industry.

The license also ensures your clients that you as a professional in your field. This labels you as skilled, responsible, and knowledgeable in construction. Also, many larger construction companies hire licensed contractors, providing more profitable jobs in government, residential, and commercial projects.

Obtain Better Projects

Many specialty services like HVAC, electrical, mold remediation, and other projects are often provided by contractors. There are typically fewer qualified people who are able to do these services, allowing a higher demand rate. If you’re unlicensed, you offer services that anyone can do which means there’s more competition and lower pay rates.

With a license, you are able to get more specialized jobs and bigger projects. It also allows you to work independently, which will increase your income and sell your services on a wider scale.

Better Job Security

It’s important to know that some states will fine or arrest you if you’re a licenseless contractor bidding on jobs. For other states, it may even be illegal. For instance, it’s illegal in California for contractors without a license to bid on jobs that are worth $500 or more.

In Florida, you may get fined up to $1000 or put in jail for up to one year. If you get caught for a second time, you may end up with a five-year jail sentence.

Live in Florida and need a contractor license asap? Click for more information!

If you are still considering contracting without a license, you may be quite limited in the services that you can provide. So be sure to research your state, city, and county ordinances to make sure that you are on the right side of the law.

Get Insurance and Bonds

Having proper permits and licenses shows that you are a legitimate contractor. As a licensed contractor, you are able to purchase insurance and bonds that reassure clients that they won’t be liable for any issues during a costly project. Some clients also require these insurances before they hire you.

Construction Jobs: Work With A License

It’s essential for both you and your clients to have a contractor’s license. These licenses and permits show your clients that you have the qualifications to handle construction jobs. So be sure to grab your license before starting your construction career.

Consider browsing through the rest of our guides for more need-to-know tips and information!

Leave a Comment