Laws Surrounding Residential and General Contractors in the State of Georgia
From licensing to construction contract provisions, there are several laws surrounding residential and general contractors in the state of Georgia. Understanding these laws is essential to hire the right contract and ensuring your contractors are abiding by the law. Read on to learn more about the laws surrounding residential and general contractors in the State of Georgia.
Requirements for a License
Whether it’s new construction or the remodeling of an existing building, homeowners and property developers prefer hiring a residential or general contractor with a Georgia state license. The licensing process is handled by the Georgia State Licensing Board for Residential and General Contractors under the guidance of the Secretary of State. In order to obtain a residential and general contractors license in the state of Georgia, a candidate must first meet the following requirements,
The individual must be over 21 years of age
A candidate must clear the background check
They must submit an application
They must complete a contractor pre-license course that is approved by the Licensing Board.
Finally, the individual must pass the Georgia Residential and General Contractors License Exam.
There are different types of licenses for contractors in Georgia, depending on the type of work they will be performing. A residential contractor license is required for any contractor who wants to work on residential properties, such as single-family homes, townhouses, and condominiums. A general contractor license is essential for any contractor who wants to work on any type of property, including commercial, industrial, and governmental buildings.
How to Obtain a License
1. The candidate must complete the Georgia Builder License Application.
2. They should submit the application along with the required fees.
3. They must submit proof of completion of the Georgia Residential Building Contractor Pre-Licensing Course.
4. They should submit proof of general liability insurance.
5. Once the application has been reviewed and approved, you will be issued a Georgia builder license.
Construction Contracts Provision
A construction contract has the details of each party's rights, responsibilities, and obligations in a project. The language in the contract clauses is normally negotiable; however, the State of Georgia has certain rules about what the contract must have and what it shouldn't have.
While construction parties can set the terms of their agreement, there are some laws that regulate specific types of contract provisions. Any contract clause that contradicts the law can be considered invalid and unenforceable.
“No Lien” Clauses: Any terms in a construction contract that attempts to waive or affect a party’s claims or liens before execution is considered void and unenforceable.
Contingent Payment Clauses: Georgia has pay-if-paid and pay-when-paid clauses for payment obligations running from the contractor to their subcontractors.
Payment Timing Clauses: Georgia’s Prompt Payment Act governs the deadlines by which the payments must be made on construction projects.
Retainage Limits: The Retainage Limits clause of the contract regulates how much retainage can be withheld from each progress payment.
Contractors and home repair jobs can be a major challenge for homeowners and property developers. Getting the right contractor can make all the difference in the world. If you are looking for reliable contractors, check out Braswell Construction is here to help you!