Your Georgia general contractor license is the gateway to doing business in the state. It allows you to join the nearly 2,000 contractors in the state. Whatever commercial or residential project you are planning to lead, you would need a license before starting.
Here’s the thing; a general contractor license is required for any work worth more than $2,500.
That’s not all…
You will need to meet the general contractor insurance requirement before registering your business.
In this article, we will look at 3 things:
- How can you become a contractor?
- Who can be considered for a general contractor license in Georgia?
- What are the license requirements?
How can you become a contractor?
To start a contracting business in the state, you will have to pass the licensing exam, show proof of insurance, meet the general educational requirement (provided by the licensing board), and register the business.
You can ease up the application process by getting your paperwork and information ready and prepared.
Who can be considered for a general contractor license in Georgia?
In Georgia, all general contractor work that is worth $2,500 or more must be licensed.
Licenses are in two categories — general and residential contracting work.
Applicants must opt for any of these four types of a contractor’s license.
- General Contractor:
This license is ideal for contractors who would love to work on various projects. The project must be worth $2,500 or more, and it has to be private, industrial, commercial, and other building projects. However, contractors cannot work on projects like plumbing, utility, or HVAC with the general contractor’s license. Generally, they will need Builders Risk Insurance for every project as required by state or their client.
- Residential Basic Contractor:
This license is ideal for contractors who would love to work only in family homes.
- Limited Tier General Contractor:
This license is quite similar to the general contractor license, but the project limit is $500,000.
- Residential Light Contractor:
This license is similar to the residential basic contractor, but you work on multifamily and multi-residential projects.
General license application requirements
Applicants must be 21 years of age and can provide proof of any of the following:
- Minimum of 4 years’ experience in the construction industry. The applicant must also have a year’s experience in the engineering, project management, accounting, administration, marketing, or supervision industry.
- A transcript or diploma from an accredited university in project management, architecture, building construction, or engineering. Additionally, the applicant should have a year of work experience under a licensed contractor.
- College-level course work from an accredited college or university. Additionally, the applicant should have work experience equivalent to four years of university study.
Now you have identified the various types of contractor license and the application requirement, you would have to apply for the contractor’s license.
Application for the contractor’s license
If the minimum educational and work experience is met, you’ve got to choose your most preferred contractor license and proceed with the application process.
First off, you will need to show proof of your net worth, workers compensation, and the general contractor liability insurance.
If you apply for the light commercial and residential basic license, the proof of net worth could be a $25,000 surety bond. And the surety bond can be in your business or individual name.
A signed financial letter is needed for other license applications.
Finally, you would have to pay a $200 non-refundable application fee before heading to process your application with the Secretary of State’s office.
Exam requirement
Upon the application approval, you would need to take the NASCLA exam. And it has to be taken within one year of the approval.
Furthermore, you would need to submit proof of workers’ liability insurance. The minimum amounts are.
General contractor — $500,000
Limited tier general contractor — $500,000
Residential light contractor — $500,000
Residential basic contractor — $300,000.
All in all, you should have a construction lawyer to help you through the application process.
Interesting Related Article: “What Skills Do You Need for A Successful Career in Civil Construction?“