I am in Virginia and when I started out I just wanted to build houses. I found out pretty quick that the only way around not having a license is to build for yourself (spec build). For one thing you can't get a building permit in VA if you're contracting with the public, and that connection makes having a license key.
We have 3 classes A, B, and C. Each one is based on your net worth. You need a class A to do jobs over $50K (approx). I believe for jobs below $5k you don't need a license. It's different for the trades.
Homeowners who are shafted by a Class A GC can apply to the state to cover some of their loss. There's a fund for that purpose fed by part of the license fee.
Having to get a license never put me off from being a GC. I agree with the poster who said it adds some credibility to you. Prospective customers often ask whether I have a license before they ask about insurance. Well it's been alomost 20 years now, and I am used to it.
JAD,
Here are the “cliff notes” if you will with regards to your post. The titles and definitions are not listed in their entirety if you want more information with regards to contracting laws and regulations you can contact DPOR at (804) 367-8511, visit their website at
www.dpor.virginia.gov, or reference the publication: Business and Project Management for Contractors – Virginia Edition.
Additionally you may not build “spec” homes or otherwise with the intention of selling them to the public upon completion of the project without a contractors license. You may build a home without a contractors license but must reside in the home for one year before you can sell the property. I would think after years of building homes you would know all this but here it is anyway:
54.1-1100 Definitions
“Class A contractors” perform or manage construction, removal, repair, or improvements when (i) the total value referred to in a single contract or project is $120,000 or more, or (ii) the total value of all such construction, removal, repair, or improvements undertaken by such person within any 12-month period is $750,000 or more.
“Class B contractors” perform or manage construction, removal, repair, or improvements when (i) the total value referred to in a single contract or project is $7500 or more, or (ii) the total value of all such construction, removal, repair, or improvements undertaken by such person within any 12-month period is $150,000 or more, but less than 750,000.
“Class C contractors” perform or manage construction, removal, repair, or improvements when (i) the total value referred to in a single contract or project is over $1000 or more, or (ii) the total value of all such construction, removal, repair, or improvements undertaken by such person within any 12-month period is less than $150,000.
The board shall require a master tradesman license as a condition of licensure for electrical, plumbing and heating, ventilation and air-conditioning systems.
54.1-1106 Application for Class A license; fees; examination; issuance
A. Any person desiring to be licensed as a class A contractor shall file with the department a written application on a form prescribed by the Board. The application shall be accompanied by a fee set by the board pursuant to 54.1-201. The application shall contain the name, place of employment, and business address of the proposed designated employee; information on the knowledge, skills, abilities, and financial position of the applicant.
B. If the application is satisfactory to the Board, the proposed designated employee shall be required by Board regulations to take an oral or written examination to determine his general knowledge of contracting, including the statutory and regulatory requirements governing contractors in the Commonwealth. If the proposed designated employee successfully completes the examination and the applicant meets or exceeds the other entry criteria established by the Board regulations, a Class A contractor license shall be issued to the applicant.
54.1-1108 Application for Class B license; fees; examination; issuance
A. Any person desiring to be licensed as a class B contractor shall file with the department a written application on a form prescribed by the Board. A fee set by the board pursuant to 54.1-201 shall accompany the application. The application shall contain the name, place of employment, and business address of the proposed designated employee; information on the knowledge, skills, abilities, and financial position of the applicant; evidence of holding a current local license pursuant to local ordinances adopted to 54.1-1117.
B. If the application is satisfactory to the Board, the proposed designated employee shall be required by Board regulations to take an oral or written examination to determine his general knowledge of contracting, including the statutory and regulatory requirements governing contractors in the Commonwealth. If the proposed designated employee successfully completes the examination and the applicant meets or exceeds the other entry criteria established by the Board regulations, a Class B contractor license shall be issued to the applicant.
54.1-1108.2 Application for Class C license; fees; issuance
A. Any person desiring to be licensed as a Class C contractor shall file with the department a written application on a form prescribed by the board. A fee set by the Board pursuant to 54.1-201 shall accompany the application. The application shall contain information concerning the name, location, nature, and operation of the business, and information demonstrating that the applicant possesses the character and minimum skills to properly engage in the occupation of contracting.
B. A Class A, B, or C contractor license may be granted by the Board with any of the following classifications each requiring successful completion of additional oral or written examinations: (i) building contractor, (ii) highway/heavy contractor, (iii) electrical contractor, (iv) plumbing contractor, (v) heating, ventilation, and air conditioning contractor, and (iv) specialty contractor.
54.1-1115 Prohibited Acts
- Any person who undertakes work without (i) any valid Virginia contractor’s license or certificate when a license or certificate is required by this chapter or (ii) the proper class of license as defined in 54.1-1100 for the work undertaken, shall be fined an amount not to exceed $500 per day for each that such person is in violation, in addition to the authorized penalties for the commission of a class 1 misdemeanor.
- No person shall be entitled to assert the lack of licensure or certification as required by this chapter as a defense to any action at law or suit in equity if the party who seeks to recover from such person gives substantial performance within the terms of the contract in good faith and without actual knowledge that a license or certificate was required by this chapter to perform the work for which he seeks to recover payment.
54.1-1120 Recovery from Fund generally.
- When ever any person is awarded a judgment in a court of competent jurisdiction in the Commonwealth of Virginia against any individual or entity which involves improper or dishonest conduct occurring (i) during a period when such individual or entity was a regulant and (ii) in connection with a transaction involving contracting, the claimant may file a verified claim with the director to obtain a directive ordering payment from the Fund of the amount unpaid upon judgment, subject to the following conditions.
54.1-1126 Revocation of license upon payment from Fund.
Upon payment by the director to a claimant from the Fund as provided in 54.1-1125, the Board shall immediately revoke the license of the regulant whose improper or dishonest conduct resulted in payments. Any regulant whose license is revoked shall not be eligible to apply for a license as a contractor until the contractor has repaid in full the amount paid from the Fund on his account, plus interest at the judgment rate of interest from the date of payment.
WillieT,
Yes, I would still carry a license as I feel it lends somewhat to credibility and legitimacy to have a license and any other form of accreditation that you can obtain.