View Full Version : Licensed vs unlicensed states
knothead
December 20th, 2009, 11:41 AM
I live in the beautiful state of "live free or die" NH and unfortunately we do not have any requirements for the licensing of contractors. Plumbing and electrical do require a license but other than that anyone "who saw it done once" can become a contractor. Although they have tried to pass legislation to require licensing it has been shot down and my question is to you guys and girls who live in states that do require licensing, how big of an advantage is that when your competing against hacks? Losing a $25000 job by $500 to another qualified competent contractor hurts but at least it doesn't infuriate me like losing by $7500 to some uninsured, unqualified hack. Do you think licensing really makes a difference?
RCP
December 20th, 2009, 11:53 AM
I live in a state that has licensing for all trades, requires continuing education and is enforced. It does not matter much to some of the HOs who are shopping on price alone. Educating customers with a professional presentation is the key.
Where it does count for me is working for GC's, doing Commercial and bidding projects where it is required. Unlicensed guys just cannot enter those areas to compete.
topcoat
December 20th, 2009, 11:54 AM
kh
Same deal in Vermont nextdoor. I dont think it would make a difference. The unqualified hacks dont have gl, wc, or pay taxes and that doesnt seem to bother homeowners.
Silvertree
December 20th, 2009, 11:55 AM
I don't think it makes much of a difference.
I have been licensed for 22 years. Treated people right before licensing and treat them right now.
Decoman
December 20th, 2009, 12:14 PM
I don't think it makes much of a difference.
I have been licensed for 22 years. Treated people right before licensing and treat them right now.
I think that's key most people who do it "by the book" would do it that way no matter what the systems put in place by the state, etc...
bikerboy
December 20th, 2009, 12:49 PM
Being licensed opens doors to jobs that un-licensed contractors cannot bid on. If you are serving only private homeowners, it will make little if any difference.,
angus242
December 20th, 2009, 01:05 PM
I once heard a guy that was stealing his cable TV say it wasn't stealing because if he had to pay for it, he wouldn't subscribe. He thought because he wouldn't pay the cable company regardless, they weren't losing money.
I think there are HOs that feel the same way, they refuse to pay "extra" for a service regardless of licensing regulations.
I guess the real question is if you'd want to work for someone like that anyway. I mean, their money is just as good but somehow I feel like it wouldn't be a satisfying project anyway.
BTW, Illinois has licensing for electrical, plumbing and roofing only. Everything else is up for grab.
orson
December 20th, 2009, 04:35 PM
Hiya Angus, nice to see you posting on here!
Doesn't licensing help at all in respect to pulling building permits? In other words, if there is licensing in a state won't some portion of the population that might be seduced by price at least go with a licensed contractor because of basic permitting requirements?
In PA there is no state licensing even for plumbers and sparky's.
It's kind of a joke, up until recently when they instituted a statewide contractor registration I had to maintain a license for Lancaster city. Accordingly I was a "licensed electrician" just because it was bundled with the contractor license.
Each municpality has different requirements, usually just municipal plumbing license requirements. So on any given job my plumber might have to file and pay for a license in the municpality before he can pull the plumbing permit.
What really sucks is when I price a job based on using a jouneyman plumber because a township website says that is all that's required and then when we go to permit they say they require a master plumber who costs twice as much.
framer55
December 20th, 2009, 05:29 PM
I NY we have no statewide licensing laws.
I have read too many comments from states that do, and don't enforce, to believe they actually mean anything.
It appears it is strictly a method of the state having another source of money.
I would much rather have a strict method of enforcing contractors to carry GL/WC on them.
The states with the most enforcement, Cal and Fla, still have a major problem with unlicensed contractors.
I think it is a joke!
bconley
December 20th, 2009, 05:34 PM
I live in the beautiful state of "live free or die" NH and unfortunately we do not have any requirements for the licensing of contractors. Plumbing and electrical do require a license but other than that anyone "who saw it done once" can become a contractor. Although they have tried to pass legislation to require licensing it has been shot down and my question is to you guys and girls who live in states that do require licensing, how big of an advantage is that when your competing against hacks? Losing a $25000 job by $500 to another qualified competent contractor hurts but at least it doesn't infuriate me like losing by $7500 to some uninsured, unqualified hack. Do you think licensing really makes a difference?
Here in WA. to get a license all you have to do is get out your check book.
There is no other qualifying such as documented experience or testing.
I suspect it is similar in other states?
I don't worry about the jobs I don't get, I had to turn work down recently because of workload.
Licensing makes a difference to the customers that I like to work for, I'd rather do work for someone who understands the value of using licensed and insured contractors.
Eieio
December 20th, 2009, 05:38 PM
Here in WA. to get a license all you have to do is get out your check book.
There is no other qualifying such as documented experience or testing.
I suspect it is similar in other states?
I don't worry about the jobs I don't get, I had to turn work down recently because of workload.
Licensing makes a difference to the customers that I like to work for, I'd rather do work for someone who understands the value of using licensed and insured contractors.
Same here in D.C. No test, Nada. The real test comes when you try to obtain the bonding requirements
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