Do You Really Need a Licensed Contractor?
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I can’t tell you the number of times I go to a consultation to be asked if it’s really necessary to have a North Carolina Contractor License to work on homes. Better yet, if it’s necessary to pull permits for the project.
My hope is that people will take away a few things here that will put that question to rest. In North Carolina, it’s only required if the project is $30,000 or greater. Most subcontractors operate under the General Contractor and their license. Guilford county requires any project over $5,000 to be permitted but it is not required to have a licensed contractor for a project unless the project meets or exceeds $30,000.
There are several types of general contractors. We’ll be discussing 2 classifications and their limitations.
Building Contractor: Can work on residential buildings of all types, commercial, public, industrial, and any private buildings of all types
Residential Contractor: Can only work on residential homes
Within each of those classifications are 3 limitations:
Limited License: The holder of the license can act as a general contractor for any single project up to $750,000 - excluding the cost of land
Intermediate License: The holder of the license can act as a general contractor for any single project up to $1,500,000 - excluding the cost of land
Unlimited License: The holder of the license can act as a general contractor without any restrictions on the value and size of a project | Note: Cruz Built has an unlimited building contractor license in North Carolina.
Fun Fact: If the project price is over $30,0000 and the contractor is not licensed, you are not obligated to pay over $29,999 even if a contract was signed.
I strongly recommend that homeowners request the license certificate of any general contractor they are considering for a project. It allows you to check their project limitation and if they are in good standing with the board (North Carolina Licensing Board for General Contractors). General contractors are not allowed to bid or begin any projects higher than they are licensed.
RED FLAGS
The contractor asks the homeowner to pull permits on their project.
The contractor pulls permits but the amount on the permit application is less than $30,000 (even though your contract with them is for more).
The contractor listed on the permit application is different from the contractor you hired.
Fun Fact: As a homeowner, you are not legally obligated to pay over their license limitation regardless of the signed contract.
At Cruz Built, we pride ourselves on having taken the necessary steps to be licensed and insured. We are happy to provide any homeowner with our license and encourage them to verify by checking this link.
Best regards,
Sam Cruz
President of Cruz Built
