Licensed & Insured

bjg5240

That sucks!

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Mitch M

Licensed and Insured. I think they do it on their signs to make it look professional and pretty. I am a GC and specifically ask my subs if they have workman's compensation and general liability and that I must have a certificate of insurance with me as the certificate holder. I had one sub tell me that I asked him if he had insurance and he said yes. All he had was general liability. So now I make it a requirement that I have it before they start.

Unfortunately for the HO, if they ask the contractor if they have insurance, the contractor will say yes. Of course they may only have general liability and if an employee gets hurt it is on the HO. They just don't understand. Of course, these people are my competitors who I have no way of competing against because the can low ball the job.

Grumpy

"Mr Customer, before I go I want to leave you with these three documents. This is my state of IL roofing contractor's license. If anyone wants to install your roof without one, THEY ARE BREAKING THE LAW.

Also here is a copy of my certificate of general liability insurance. THIS PROTECTS YOU if we cause any damage to your property. However here is a copy of our workmans compensation insurance... Oh yes, theya re SEPERATE POLICIES. Are you familiar what will happen if you hire anyone without workmans comp and they get injured on your property?

It's important to make sure anyone you hire to work on your property for anything have workmans compensation and general liability insurance."


My brother called a guy over to estimate carpet. I hapened to be there because I was helping him install some doors. I asked if he had insurance. His answer "Oh we are licensed, insured and bonded." My answer: "Really sicne when did the state start requiring carpent licenseS? Last I checked the only licensed trades were roofing, plumbing and electric." his answer: Silence.

Me: "Can you show me a certificate of insurance?" Him: "I'll have my installer fax you his certificate."

I'm sure you see where I am going with this. The guy is a liar saying he has what he does not have.

RenaissanceR

[deleted]

CogentRES

It is interesting to read about the licensing requirements of other states.


Here in Michigan any job not related to electrical, plumbing or mechanical work not valued at over $600 including labor and materials requires a Residential Builder's license.


In order to obtain a Residential Builder's license one must simply pass a written exam with a mediocre score.


The requirements to obtain a Plumbing, Electrical or Mechanical License are much more rigorous. An applicant must pass an exam and document work hours in order to progress from Apprentice to Master.




I think state licensing is much more about reducing competition than ensuring public safety or work quality.

It is funny how the trades with very strong unions also make licensing more restrictive.

Any thoughts?

RYANINMICHIGAN

Our contractor licensing is a joke. I think the whole idea is a joke honestly.. A license does not guarantee the quality or safety of my craft. Codes insure safety not quality. I can build something that is safe and looks terrible.

Dale S.

Ahhh, a topic near and dear to my heart!!! (NOT!!)

In Oregon, you must have:
a) a contractors license, (their are multiple levels depending on how complex a project you want to do and what your activities will be, all require the passing of an open book test)
b) a bond (size depends on your license type)
c) liability insurance (size depends on your license type)
d) workers comp coverage
e) pay state and federal income taxes
f) pay state unemployment taxes.

Don't you love it!!

The part that gets me going is that in the last 12 months we have been: (a) audited by our workers comp carrier to make sure we were paying the correct rate for the type of work (we weren't,but didn't have to pay a fine), (b) audited by the State of Oregon to make sure we were paying the Oregon income and unemployment taxes (passed that audit), and (c) have had multiple discussions with the IRS about back payments.

What really gets to me is that I KNOW of some competitors who don't do any of the above and never get caught. In our area, everyone knows who the enforcement officers are for each of these agencies and when they pull into a job, a lot of people can be seen piling out the windows in the back of the house and hiding until the all-clear signal is given. Meanwhile, their overhead is a LOT lower than mine and I lose jobs due to it....big sigh....

Please don't misunderstand, this is not a rant against hiring illegals, I have mixed feelings about that, but at least pay all of the taxes, fees, licenses, etc. that I do so that we are all on a level playing field!

I like the idea of putting our licenses, etc. in our bid packet and pointing them out to customers! Gonna have to start doing that!

dale

Sorry for the long rant, this topic just hit my hot spots...

Dale S.

Oh yeah, the most difficult license to get in Oregon? Nope, not plumber or electrical, but ..... landscaper. You would not believe how tightly they have that license locked up. To the landscapers credit, licensed landscapers make a LOT of money. Due mostly to supply and demand...lots of demand, VERY controlled supply....

dale

TBALL

In order to renew my licences I must have proof o general Liabitiy ins. The cheapest is $5000 a year. I am just a small guy trying to get started and do things the right way and here comes uncle sam with his hand out.

Does anyone have any contacts in teenesse to keep me in business,I dont mind paying but I think it ought to b based on how many you build a year!

manu

so we got alot of restriction on west coast. I'm from Seattle and it's same here. with plain business license just mowe a lawn nothing more and very smal jobs otherwise sey hello to LNI, and you don't wanna get on their list

ElliottDoor

Right, California here also. $500 dollars is permitable without a license but that also includes material cost!! So basically you can build a 6' fence, maybe.

Its $750 if its a service work. such as an emergency plumber..

To get my specialty license which is called a C6 cabinet and millwork. You need the 12.5k bond and you don't NEED liability insurance but you have to disclose whether or not you have it to the HO.

Fingerprints, yes.. and a workmans comp waiver form if applicable.

Lets see, what else.. $250 to take the exam, $150 processing fee if you pass. $50 re-take fee if you fail. You have to pass both a law and trade exam.

City License or County License, whichever you live in.

I know this because I just went through it all..

Chris Johnson

And if you work in a different city or county you may also need to give them your $ 15.00 dollars or so in order for the contractor/H.O. to get final sign off on a certificate of occupancy

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Chris

TigerFan

Gotta love the licensed and insured guys... here in post-Katrina New Orleans it's a wild west, although the state is really starting to crack down.

I bid a job the other day for a distant acquaintance of my office manager. This woman was a bit tough - redoing a whole flooded house including SIGNIFICANT structural load bearing changes.

I send her the quote and first thing out of her mouth was something about my "outrageous" pricing. I did my sales pitch and we talked the job over for well over a week. In the end, they went with another company that they said was kinda like a "friend down the street" job.

Anyway, I happened by the job today on my way to do another estimate. 2 contractor signs and trailers outside busily working away. Contractor #1 is at least in good standing with the Sec of State, contractor #2 is not. Neither one is licensed to do Home Improvements or Residential Building by the contractors board - a requirement of State law.

Shocker.

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bryant068

does anybody know what type of insurance and how much it usally cost for a unrestricted csl in mass
im still in the study process to go take the test for my license

DetailHandyman

Maybe you should start a new thread instead of resurrecting a two year old unrelated topic.

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