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Georgia Contract Licensing: The Basic Requirements and Rules


Georgia has a State Construction Industry Licensing Board that governs contractor licensing and all that it entails. Contractors in this state are required to be licensed by law unless they perform certain trades or do work under a certain dollar amount. Therefore, if you're going to be working professionally as a contractor, it's a safe bet to get licensed.

Types of Contractor Licensing in Georgia

There are four main classifications for contractor licensing in Georgia

1. Residential Basic: These are contractors who work on one- and two-family homes and single-family townhouses under three stories.
2. Residential Light: These contractors handle everything above, along with work on multifamily and light commercial structures designed for multi-use.
3. General Contractor: This license provides permission to perform unlimited work in the construction field, for the most part.
4. General Contractor Limited Tier: These contractors have the ability to perform any work, as well, but they are limited to contracts of $1 million or less.

In addition to these general contracting license options in Georgia, the state also has specialty contractor services and licensing boards. These include:

* Electrical contractors
* Plumbing contractors
* Low-voltage contractors
* A/C contractors
* Utility contractors

All of these contractors will have to find and follow the requirements for the license they desire in order to get licensed and approved.

Requirements for Contractor Licensing

In Georgia, the general requirements for getting a contractor license include:

* Must be over age 21
* Must be a U.S. citizen (or qualified alien)
* Must pay the application fee
* Must pass a background check (for "moral character")

In addition to this, each license may have its own requirements that need to be added, as well. Be sure to ask questions of the licensing board if you're not sure about how to proceed.

Insurance Requirements

General contractors in Georgia must also show proof of insurance when they are applying for a license. This needs to be in the form of general liability coverage, but the amount needed will vary depending on the exact license classification. Residential basic contractors must have $300,000 in coverage while others must have $500,000 as a minimum coverage amount.

Contractors may also have to prove their financial responsibility, which can be done by using net worth, a letter of credit, or a bank reference form. The financial responsibility requirements vary by license type, too, so be sure to double-check that information when filling out your application.

Reciprocity

In Georgia, contractors share reciprocity with a few other states. However, the contractor will still need to take and pass Georgia's business and law exam before a reciprocal license can be issued. The states involved here include:

* South and North Carolina
* Tennessee
* Mississippi
* Florida
* Louisiana
* Alabama

Where Can I Learn More?

If you are ready to get your Georgia contractor license or are trying to get more details before you dive into the application, visit the state board that is responsible for the licensing that you need. You can also reach out to the team at Nationwide Notice, Inc. to get help with Georgia contract licensing and other needs. Lien rights are a great way to keep construction project workers from losing their own money in a project. Nationwide Notice, Inc. focuses on assisting construction companies to get their construction payments. As a self-service and full-service lien service and preliminary notice company, that's just what we do.

If you want to make sure you're doing everything you can to keep your lien rights, contact Nationwide Notice, Inc. We'll help ensure all your paperwork is filed correctly and on time, based on your local laws so you can be protected by your right to file a lien if the need presents itself. Check out the full Nationwide Notice, Inc. website here to learn more about us, or check out our services page to see all the solutions we offer. No matter what size or kind of construction company you work for, our goal is to always protect your receivables.