LEGAL MATTERS
Are You or Your Subcontractors Properly Licensed?
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any states and local governments require construction contractors to have licenses or register before undertaking any construction or home improvement work. Unlicensed or unregistered contractors often can be subject to fines and find it difficult to get paid. It is not just the contractor at risk. A flooring retailer that uses an unlicensed or unregistered contractor to install floor can be subject to fines and liability.
Licensing and Registration Requirements
Jeffrey W. King Legal Counsel for the WFCA Jeffrey King has more than 35 years’ experience in complex litigation with a focus on contracts, employment, construction, antitrust, intellectual property and health care. He serves as legal counsel for WFCA and other trade associations, and is a LEED Accredited Professional. For more information, contact him at (561) 278-0035 or jeffw@jkingesq.com.
Licensing and registration requirements vary from state to state. Some states, such as Idaho, Kansas, Colorado, New York, Wyoming, and Texas, do not require general contractors to be licensed. However, there may be licensing requirements at the local level in these states. Even if a general contractor does not need a license, states like Connecticut, Delaware, and Nebraska require the contractor to register with a state agency. Iowa, for instance, requires all general contractors, subcontractors, and handymen performing more than $2,000 in work over the course of a year to register their business with the state Division of Labor. In states requiring licenses, the requirements vary. States like Alaska and Arkansas require either the prime contractor or the subcontractor have a license. Other states, including California, require both the general contractor and the subcontractors to be licensed or registered. The license and registration requirements also can vary on whether the work is for residential or commercial construction. It is common for a state to require a residential contractor license for contractors who work only on residential housing, while contractors working on commercial projects need a general contractor’s license. Many states and localities also require licensing for specialty trades, like mechanical, plumbing, HVAC, refrigeration, sheet metal, and hydronic contractors. These specialties can include the flooring installation, such as tile work, stone installation, masonry, and other trades. It is important for every flooring retailer, contractor, and installer to understand the state or local licensing or registration requirements where they are installing floors. Being licensed in one state does not authorize the contractor to work in another state. Failure to follow the licensing and registration requirements can expose the flooring retailer, contractor, and installer to liability and fines.
Many states and local governments require construction contractors to have licenses or register before undertaking any construction or home improvement work. 24 Premier Flooring Retailer | TISE Edition 2021
