How to Get a Georgia Contractor License
All general contractors in Georgia who want to work on projects exceeding $2,500 need to get licensed. The Professional Licensing Boards Division’s State Licensing Board for Residential and General Contractors is the entity that issues Georgia contractor licenses since the rule was introduced in 2008.
Contractors need to meet a range of requirements and undergo the procedures set by the Board. In this way, the state ensures that only established professionals will offer such specialized services. The purpose is to protect the general public from low quality contractor services.
While getting licensed doesn’t need to be complicated, it’s best if you are well acquainted with the process before you start it.
Let’s look at the most important steps to obtaining a Georgia contractor license to prepare you for your licensing procedure.
Who needs a Georgia contractor license?
As mentioned, if you want to execute contractor projects above $2,500, you will need to get licensed.
There are three main types of Georgia contractors licenses:
- residential (basic contractor) – can work on detached one-family and two-family houses and one-family townhouses that do not exceed three floors
- residential (light commercial contractor) – can perform the work of a basic residential contractor, plus on multifamily and multipurpose light commercial buildings
- general contractor – can work on private, commercial, institutional, industrial and public buildings
Specialty contractors such as HVAC specialists, plumbers and electricians in the state also need to undergo a licensing process. However, for most of them, the licensing is done through the Professional Licensing Boards Division.
The Georgia contractor license requirements
Whichever type of general contractor license you need to obtain, you will have to start with completing the online license application.
For all three types of licenses, special exams are required, which include Business & Law, as well as a Trade exam.
Basic residential contractors have to demonstrate professional experience of two years in the field. $300,000 general liability insurance is also required, as well as workers compensation insurance if employing workers.
Residential (light commercial) contractors need to provide proof of sufficiently long relevant education, as well as practical experience in the field. They need to obtain $500,000 general liability insurance and workers’ compensation insurance if they are employing other people.
General contractors also have to provide documentation to the Board that they have the required combination of educational and working experience in the field. The general liability insurance coverage for them is $500,000. They must have a minimum net worth of $150,000.
Obtaining your Georgia contractor license bond
One of the most important requirements for getting your Georgia contractor license is posting a $25,000 contractors license bond.
If you haven’t stumbled into bonds previously, it’s important to note that unlike insurance, bonds do not protect your business. They are a safety measure safeguarding the interests of your clients. If you do not abide by your contractual agreements, the bond can used to compensate the affected parties.
When getting bonded, you need to cover a small percentage of the bond amount, called the bond premium. This is your actual bond price. The amount, on the other hand, is the maximum penal sum that claimants can obtain on proven claims against your bond.
Your bond premium is affected by your personal credit score and overall finances. This means that if your business is stable, you can expect to pay less for your bond.
If you want to launch your licensing process today, you can apply online for a free, no-obligations bond quote. Our bonding specialists are at your disposal, so for any questions, don’t hesitate to call us at 866.450.3412.