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'licensed And Insured ''

 
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Old 08-31-2012, 06:46 PM   #1
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'licensed And Insured ''


i am a residential and comercial contractor in the western new york area i am often asked are you licensed ?could somebody tell me what license i am required in my area to have? thanks
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Old 08-31-2012, 07:29 PM   #2
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Re: 'licensed And Insured ''


If you are not licensed, bonded, and insured per requirement from your area..........you are not a contractor.

I am not trying to be mean and it would be hard not to take offense to that but no offense to you.

This is all info you should have researched before you were ever in contact with any potential clients.

Now get all that you need and do good stuff.

I am not in your area so unfortunately I can't help you but I hope someone comes along and points you in the right direction.

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Old 08-31-2012, 08:29 PM   #3
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Re: 'licensed And Insured ''


meanie!
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Old 08-31-2012, 08:46 PM   #4
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Re: 'licensed And Insured ''


In Georgia there is no license required for jobs under 2500.00. Unless plumbing,elec., or hvac is involved. Then those trades have to have a license. So for me the only license I have to have is a business license.
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Old 08-31-2012, 08:47 PM   #5
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Re: 'licensed And Insured ''


Many areas don't require licenses. In Ontario you can get a license to do masonry work but it isn't mandatory. In my opinion I don't feel the need for the province/state to tell me I know my trade. I have hundreds of past customers who can vouch for that. It does make some customers feel better about hiring you because most licenses require at least some past experience and testing. In my experience the tests are absolute jokes, but joe public doesn't know that. And I'm sure there are some areas that the licensing test is fairly difficult. I have met MANY bonehead licensed bricklayers (I won`t even call them masons) that I wouldn`t hire for anything but putting brick up in a subdivision.

Different jurisdictions have different requirements and it`s up to you to know if you are required to have one in the area you work in

Sorry Carpntr frank, but anyone who wants to tell me I`m not a masonry contractor because I don`t have a license can go suck a lemon.
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Old 08-31-2012, 09:08 PM   #6
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Re: 'licensed And Insured ''


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Originally Posted by dom-mas View Post
Sorry Carpntr frank, but anyone who wants to tell me I`m not a masonry contractor because I don`t have a license can go suck a lemon.
If you posses all that is needed to do your trade legally in your area, yes you are a contractor. My comment was and is very geographically oriented.

As stated, some areas you need nothing but a truck and tools. Well then your a contractor.

Where I am, if you did not have a license, bonding, insurance, etc no you would not be a contractor.
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Old 08-31-2012, 09:19 PM   #7
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Re: 'licensed And Insured ''


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Originally Posted by dom-mas View Post
Many areas don't require licenses.
Just saw this posted by another member today.
State by State Residential Contractor Licensing->http://blog.sls-construction.com/201...icensing-recap
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Old 08-31-2012, 09:41 PM   #8
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Re: 'licensed And Insured ''


I understand some states not requiring contractors to carry a lic.

But if you are not properly bonded, insured and carry comp for employees.

YOU'RE NOT A CONTRACTOR


And without those not only are you putting your business at risk you are also contributing to giving honest contractors a bad name.

Insurance is expensive and in my opinion it is what sets the pros apart from the wanna bees...
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Old 08-31-2012, 09:46 PM   #9
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Re: 'licensed And Insured ''


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Originally Posted by SAW.co View Post
I understand some states not requiring contractors to carry a lic.

But if you are not properly bonded, insured and carry comp for employees.

YOU'RE NOT A CONTRACTOR


And without those not only are you putting your business at risk you are also contributing to giving honest contractors a bad name.

Insurance is expensive and in my opinion it is what sets the pros apart from the wanna bees...
Dunno about bonding. Liability and comp really isn't that exspensive. As long as you bill correctly the customer is paying for it anyway.
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Old 08-31-2012, 09:55 PM   #10
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Re: 'licensed And Insured ''


Quote:
Originally Posted by summithomeinc View Post
Dunno about bonding. Liability and comp really isn't that exspensive. As long as you bill correctly the customer is paying for it anyway.
I dont no what you pay but my comp rates can go as high as 30% depending on pay and type of work.

Of course I bill this to the customer and in doing so my bid is guaranteed to be higher than the guy without it.

See my thread (deck demo the SAW Co way) and you will understand why I carry & pay so much for ins.

Last edited by SAW.co; 08-31-2012 at 09:59 PM.
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Old 08-31-2012, 10:37 PM   #11
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Re: 'licensed And Insured ''


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Originally Posted by SAW.co View Post
I dont no what you pay but my comp rates can go as high as 30% depending on pay and type of work.

Of course I bill this to the customer and in doing so my bid is guaranteed to be higher than the guy without it.

See my thread (deck demo the SAW Co way) and you will understand why I carry & pay so much for ins.
I think my rate is close to the same. I know if I pay a guy 15.00/hr it cost me about 21.50/hr including taxes, unemployment, liabilty, and comp.
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Old 08-31-2012, 10:44 PM   #12
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Re: 'licensed And Insured ''


Guys, this is COMPLETELY dependent on the area/state/county/and AHJ.

Things are so incredibly different as far as licensing I even started a sticky thread about it a while ago to show some of the massive differences.

https://www.contractortalk.com/f63/ho...censing-94915/

It really does vary. (PS, don't post there unless you have solid info btw)
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Old 08-31-2012, 10:45 PM   #13
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Re: 'licensed And Insured ''


Quote:
Originally Posted by summithomeinc

I think my rate is close to the same. I know if I pay a guy 15.00/hr it cost me about 21.50/hr including taxes, unemployment, liabilty, and comp.
If we pay our guys 22.00 per hour our comp is 26% I think it is like 45% if they are payed less then 22.00 per hour.
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Old 09-01-2012, 12:50 AM   #14
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Re: 'licensed And Insured ''


Insurance is a risk management tool. Most businesses couldn't afford to pay a $1 million bodily injury or property damage claim so they buy liability insurance. The same with Workers Comp. Most businesses would not be able to financially cover the medical and income replacement costs for a permanently disabled worker for the rest of his life. However, if you had a rich Uncle Rockefeller then that could be an alternative loss control plan. Since most businesses don't have the financial resources for large loss payouts, that is where insurance serves as a way to transfer the risk and make it manageable.

There are different kinds of bonding, but in general they are all guarantees that you have the financial resources to finish the job and pay all associated costs. This would be analogous to getting a secured mortgage where you need collateral and a co-signer. While commercial projects usually ask for bonding, these requirements can be waived depending on the strength of your financial statements. Most smaller projects don't ask for bonding as the assumption is that your business can afford the lower job costs. This would be analogous to getting an unsecured loan.

Government jurisdictions often butt in by making it a legal requirement to carry insurance, Workers Comp and/or bonding in an effort to protect consumers. In that case, you would have to carry these coverages in order to operate within the law.

You can be a contractor without insurance and/or bonding; odds are that you just wouldn't be a financially stable contractor.

Last edited by Astrix; 09-01-2012 at 01:03 AM. Reason: grammar
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Old 09-01-2012, 02:11 AM   #15
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Re: 'licensed And Insured ''


If you live in California then it is illegal to Advertise about Bonding
Contractors are forbidden by law to advertise the fact that they are bonded. It could lead the public to believe there is a higher level of protection than might actually be the case.
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Old 09-01-2012, 07:10 AM   #16
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Re: 'licensed And Insured ''


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Originally Posted by summithomeinc View Post
Dunno about bonding. Liability and comp really isn't that exspensive. As long as you bill correctly the customer is paying for it anyway.
I agree, my liability for 2mil is just over $1000/yr. And my comp rates are 12.34% something but not hugely significant. And bonding is only required here (from my understanding) on contracts over a certain dollar amount (I think 1 or 2 mil but not certain) or if the customer requires it, usually government or some commercial. I know for certain that at the level I work at it is absolutely not required
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Old 09-01-2012, 07:25 AM   #17
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Re: 'licensed And Insured ''


Quote:
Originally Posted by summithomeinc

I think my rate is close to the same. I know if I pay a guy 15.00/hr it cost me about 21.50/hr including taxes, unemployment, liabilty, and comp.
If you were paying 30% comp on $15 an hour, the comp alone would make the amount $19.50.

However rates are all over the place as we know. My $20 hour roofer costs me $34 and some change every hour.

I could be rich if I could find good subs.
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Old 09-01-2012, 10:34 AM   #18
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Re: 'licensed And Insured ''


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Originally Posted by Californiadecks View Post
If you live in California then it is illegal to Advertise about Bonding
Contractors are forbidden by law to advertise the fact that they are bonded. It could lead the public to believe there is a higher level of protection than might actually be the case.
I've never heard of this?
I do no that if you run a check on a CA lic the state will tell if the contractor is bonded and if he is not his lic is under suspension.
Liability is not required but you're a fool not to have it.
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Old 09-01-2012, 10:58 AM   #19
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Re: 'licensed And Insured ''


Quote:
Originally Posted by SAW.co View Post
I've never heard of this?
I do no that if you run a check on a CA lic the state will tell if the contractor is bonded and if he is not his lic is under suspension.
Liability is not required but you're a fool not to have it.
Yea I never heard of it being illegal to advertise That a company is
bonded. Our yellow pages ad says Licensed bonded and insured.
I could be wrong though it happened once a long time ago

Bond is required here while, Liability isn't. License is mandatory for
any project over $500.00 labor and material.

Workers comp is required if You have an employee but, not if You
work alone. But, even then You must have a waiver on file with
the CSLB. Starting this year when You renew Your license You must
renew You waiver as well.
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Old 09-01-2012, 11:08 AM   #20
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Re: 'licensed And Insured ''


B&P section 7071.13


I stand corrected. I'll check with My attorney Tuesday if how We word
Our Ad is okay since We state Licensed, Bonded AND Insured. Thanks'
for the heads up

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