Each state has its own regulations for general contractors in terms of the license, insurance, and bonds. For some positions in the construction business, having the proper insurance and bonding may be necessary to keep you financially secure. Construction projects are managed by general contractors from beginning to end. They are in charge of acquiring building permits, selecting subcontractors, and ensuring that the project complies with all building norms and rules. They must be aware of their state’s requirements for licensing, insurance, and bonds as part of that. Although certain states may need registration, not all states require construction contractors to hold a license in order to practice construction management. Depending on the kind of construction work they conduct, local governments may also have their own license or registration requirements for general contractors.

Even though it’s not needed, getting a general contractor’s license might help you gain more business by showing potential clients that you’ve passed the state’s competency standards. The proper levels of insurance and bonding offer crucial financial security for your company and could be necessary for specific construction tasks. Before accepting your first project, you might need to acquire a general contractor license from the state licensing board or secretary of state, depending on where you live. Even if it’s not necessary for your state, it’s crucial to investigate local authorities because they can have professional license requirements. It may not be necessary for those working on modest home improvement projects for various homeowners to hold a general contractor’s license, depending on the nature of the job and the scope of each project. When the cost of labor and materials exceeds a certain level or when performing particular services, such as plumbing, roofing, electrical, or HVAC repair, you might need to get a license. A general contractor and a handyman differ mostly in their ability to handle larger tasks and their trade-specific knowledge.

A handyperson will often have their own tools, but they might not have the skills or authorization required for a certain project. If you need to replace a door or a leaking roof, a handyman is typically an excellent option, but if you want to expand your entire home, you should think about hiring a general contractor. Application criteria for contractor licenses vary by area. Contractors normally need to be 18 years of age or older, demonstrate that they have training or work experience in the industry, and successfully complete a test. In most cases, general contractors must pay both an application fee and a licensing fee, which may need to be renewed. You can be required to have general contractor insurance, such as workers’ compensation and general liability insurance.