Why You Should Become A Licensed Contractor?

Acquiring a contractor’s license is an efficient way to grow your business. It would open a lot of doors for you and you would have opportunities to gain access to bigger construction projects. The first step to obtaining a licensed general contractor in your state, passing an exam and meeting a number of requirements is necessary.

There are other contractors who prefer to work unlicensed since completing the exam takes time and could be costly. Besides, they managed to get jobs anyway even if they are unlicensed. However, there might be legal issues and some possible clients might not continue working with you since it is illegal and potentially hazardous.


You would be more knowledgeable

Even if you already have countless years of experience as a contractor, you would still be able to gain more knowledge once you become licensed. You would be informed of the current trend and development in the construction industry. Not only would you be more knowledgeable in the construction sector, you’d also learn how to run a business properly since you would have a good grasp on how to develop various projects more efficiently.

You would be abiding the law

General contractors usually must be licensed in every state, with some state posing harsher punishments on unlicensed contractors. Not only that, what is legal or illegal and which could be considered as handyman work in contrast to contractor work also varies.

So, it is recommended that you do your research on what is allowed in your state. Although, it is better that you obtain your license since if you don’t have any, you would only be hired for limited services. If you have building licences NSW issued, you will be able to do any residential building work amounting to more than $5000.

You will have more clients

More and more customers are doing their research to find respectable businesses, thanks to online reviews and social media. Having a license provides you an advantage because it means your knowledge and abilities are certified by governing bodies. It’s an accomplishment and an edge over your competitors.

Your clients will also feel more secured and will have peace of mind since they know you are covered by an insurance. If an uninsured contractor slips and falls on a client’s property, they may be able to sue the homeowner for compensation. This is not a risk that most clients would not take, hence you would lose their business.

You will become a better contractor

At first, you might think applying for a general contractor’s license is an unnecessary expense. But the truth is, it would also make you a better contractor because it improves your professionalism and there is that added motivation to being competent and not have your license revoked.

Once you have decided that you want to be a licensed contractor, do your research online and find out which examinations and licenses are required in your particular industry. Better yet, approach your local planning and development board or the state licensing board for contractors to receive the most up-to-date information on how to get licensed.