One concern for builders and homeowners alike is the necessity for a general contractor to possess a valid contractor's license. The laws pertaining to contractors may be found at Laws and Regulations for Contractors. Any contractor who undertakes a project greater than $30,000 is required to have a license. There are three types of licenses: Limited (up to $350,000), Intermediate (up to $750,000) and Unlimited. The penalties for undertaking a project without a license or in the name of an entity that does not have a license is harsh. An unlicensed contractor may not collect any money for his labor or material - even if the owner knew the contractor was unlicensed. Where our contractors have problems is when the contract is not precisely in the name of the entity (or person) that has the license. If the name on the license does not match the name on the contract, our courts consider the contractor - unlicensed and the penalties apply. Not only can the unlicensed contractor not recover any money for his work - but technically he has committed a misdemeanor.
