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Contractor FAQ

Below are Frequently asked questions created by the Georgia Registrar of Contractors, they can also be found here.

  1. Who is required to hold a license from the State Licensing Board for Residential and General Contractors?
    Residential-Basic Contractor (contractor work relative to detached one-family and two-family residences and one-family townhouses not over three stories in height)
    Residential-Light Commercial Contractor (same as residential-basic, and additionally, such contractor work or activity related to multifamily and multi-use light commercial buildings and structures)
    General Contractor (contractor services unlimited as to type of work contracted for, undertaken to perform, bid or proposed upon or otherwise offered to perform, and performed as a contractor, except any work which falls under the licensing requirements of Chapter 14 of this title, which may not be performed by the general contractor unless he or she possess licensure to do such)
    General Contractor Limited Tier (contractor services unlimited as to type of work contracted for, undertaken to perform, bid or proposed upon or otherwise offered to perform, and performed as a contractor, except any work which falls under the licensing requirements of Chapter 14 of this title, which may not be performed by the general contractor unless he or she possess licensure to do such). This license is limited to contract amounts of $500,000 or less.
    Certain specialty trades or work costing less than $2,500 do not require the services of a state-licensed contractor. Please review our website for information on specialty services.
  2. How can I obtain a state license?
    Submit a completed application for licensure and non-refundable fee, along with all the supporting documents as indicated by the application, and submit to and pass an examination required for the particular license
  3. Are there any project size limitations based upon the contract amount of the project within each category of licensure?
    No. The limitations within the categories are based upon a number of floors/stories, square footage, and project type (occupancy classification). The general contractor category is unlimited as to the project type and size; however, the general contractor's limited tier is limited to contracts of $500,000 or less.
  4. Should I apply as an “Individual in his or her own behalf” or as an “individual acting as a qualifying agent for a Georgia business organization”?
    If the applicant is doing business in his or her own name or a trade name where the individual is doing business as a sole proprietorship, the applicant would apply as an individual. If an applicant is applying on behalf of and for the benefit of a business organization (any partnership, corporation, limited liability entity, business trust, joint venture, or other legal entity, other than an individual person doing business as a sole proprietorship), the application must be submitted by and through an individual qualifying agent for such business organization. A license will be issued to the individual qualifying agent and to the affiliated business organization. A qualifying agent license is not a personal license and may not be used to operate as an individual and may not be used to operate for any other business organization. If you leave the company for which the qualifying agent license was issued, you must apply for a new license.
  5. Can a licensed general contractor perform work within the residential classifications?
    Yes, a general contractor can do work under all three license classifications; residential-basic, residential-light commercial, and general.
  6. Will I be able to build my own house or building without a license?
    Yes, property owners may construct a building or structure which is for their own use and not for use by the general public and not offered for sale or lease. If you sell or transfer the building or structure, you will not be allowed to build another for a period of two years, unless you obtain a license or hire someone who is licensed to oversee the construction.
  7. Can a business have more than one qualifying agent?
    Yes, a business organization can have more than one qualifying agent. However, all qualifying agents are equally responsible for the supervision of all operations of the business organization, all fieldwork at all sites, and for financial matters for each specific job for which his or her license was used to obtain the building permit.
  8. Can an individual qualify more than one company?
    Yes, but the division shall require the qualifying individual to present evidence of financial responsibility and insurance pertaining to each company.
  9. Is there a minimum net worth requirement for licensure?
    Only the general contractor license requires a minimum net worth. As outlined in Board Rules 553-4-.01, 553-4-.02, 553-4-.05, and 553-4-.06, a general contractor must have a minimum net worth of $150,000 and a general contractor limited tier must have a minimum net worth of $25,000. If applying as a qualifying agent, the net worth must be in the business name.
  10. What are the insurance requirements under the new law?
    Applicants for licensure must show proof of workers compensation insurance if required by Georgia law, and general liability insurance in the following amounts:
    Residential-Basic: $300,000
    -Basic: $300,000
    General Contractor: $500,000
    General Contractor Limited Tier: $500,000
  11. If a company loses its qualifying agent can it continue to operate?
    The business organization must notify the appropriate division within 45 days of the termination of the relationship with the qualifying agent and shall have 120 days from the termination of the agent’s affiliation with the business to employ another qualifying agent and submit an application for licensure under the new qualifying agent. If such an application is denied, then after passage of the 120 day period, the business organization shall cease to be considered licensed. The division, in such circumstances, may issue a temporary nonrenewable license that will allow the entity to proceed with incomplete contracts already in progress.
  12. Will my Georgia license be accepted in another state?
    To contract legally in another state, you must meet the requirements of the other state. To determine the requirements of another state, please contact the other state board directly.
  13. Is my out of state license recognized in Georgia?
    General Contractors Division - Currently, the General Contractors Division has established reciprocity with Louisiana, Mississippi, and Tennessee as an available method by which to obtain licensure. You must hold a current commercial contractor's license with a classification of “building construction” and you must have obtained the license by state examination. Verification of licensure will be required along with your reciprocity application. Once your reciprocity application has been reviewed and approved by the Board, you will have to schedule and pass the Georgia business and law exam prior to the Georgia license being issued.
  14. What are the required fees for a license?
    The application fee is $200.
  15. If I am granted a license under examination exemption, will I be able to receive a reciprocal license in another state?
    To contract legally in another state, you must meet the requirements of the other state. To determine the requirements of another state, please contact the other state board directly.
  16. Please contact the other state board directly to determine the requirements for reciprocity.
  17. In addition to the contractor's license, what other requirements must I meet in order to open a business?
    Businesses must meet the requirements of federal, state, and local governments. To determine federal and local requirements, you will need to contact those agencies directly. A listing should be available in the government section of your telephone directory. To obtain information on state agencies, reference the First Stop Business Information Center here or contact the state directory assistance at 404-656-2000.
  18. What is a “denial letter,” and what does it mean?
    A “denial letter” is the written notice sent to an applicant who has submitted an application and has not met the requirements for licensure. A denial letter will include the reason for the denial and information on how to appeal your denial.
  19. What is a “deficiency letter”?
    A “deficiency letter” is the written notice sent to an applicant after a thorough review of his or her application has been conducted. This letter identifies the specific areas of deficiency and provides general guidance on how to address the deficiencies. The letter also provides other licensing options if applicable. For example, if an applicant applies for a General Contractor's license and submits only residential projects, staff will recommend that the applicant apply as a residential basic contractor or submit qualifying general contracting projects.
  20. What is the exam process?
    To obtain a license through the exam process, an individual submits the applicable examination application to the Board for approval. Applications may be downloaded here
  21. How do I obtain a Verification of Licensure?
    To obtain a Verification of Licensure please submit the order form here and $25.00 fee.
  22. What is the minimum net worth requirement if applying for a General Contractor's license?
    Applicants seeking to engage in general contracting shall provide satisfactory proof of a minimum net worth in the amount of $150,000. Refer to Board Rule 553-4-.01.