All residential and general contractor licenses are valid for one year from the date of issuing and must be renewed before they expire.
Step 1 Determine the License Type
Contractors in Georgia must obtain specialized licenses based on the nature of their firm. The many categories of Georgia Residential and General Contractors Licenses are shown below.
- Residential (Basic) – Works on residential structures with no more than three stories.
- Residential (Light Commercial) Can perform all contract work as a basic residential contractor and is authorized to perform contract work on multifamily residential building structures that are four stories or less and have an interior space of no more than $25,000 square feet ($50,000 if working on a pre-engineered steel building).
- General (Limited Tier) – Can only work as a general contractor on projects with a budget of less than $500,000
- General – Can work as a general contractor on jobs worth more than $500,000.
Step 2 Meet the Initial Qualifications
Before submitting an application for a license in Georgia, contractors must meet the following requirements:
- a bachelor’s degree in a related discipline and at least one year of relevant work experience; OR a master’s degree in a related field and at least one year of relevant work experience
- Four years of relevant job experience, with two of those years spent working for a home contractor.
- Minimum Net Worth of $25,000 (Limited License) or $150,000 (General License); AND
- a bachelor’s degree in a related discipline and at least one year of relevant work experience; OR a master’s degree in a related field and at least one year of relevant work experience
- Four years of relevant work experience, two of which were spent under the supervision of a general contractor
***At least one “qualifying agent” who meets the experience requirements and has completed the exam corresponding to the licensing classification must be employed by a business. ***
Step 3 Purchase Insurance
If the contractor employs employees, he or she must obtain and maintain worker’s compensation insurance as well as general liability insurance with the following limits:
How much is it to get licensed and bonded in Georgia?
Depending on the type of work performed, a Georgia contractor license bond of $20,000 or $25,000 is required. Contractors, on the other hand, are not obligated to pay the entire bond sum. A bond premium, or the cost of the bond, is calculated as a percentage of the total by a surety firm. Bond premiums typically range from 1% to 10% of the bond’s face value.
The cost of a Georgia contractor license bond is determined by your financial history. To determine how much danger you pose as a bondholder, the surety company looks at your personal credit score and corporate financials. If the risk is considerable, such as if your credit score is low, you will almost certainly have to pay a larger bond premium.
How do you get bonded in Georgia?
A surety bond can be obtained from either an insurance agency or a surety bond firm. We recommend using a surety bond provider because they specialize in surety bonds.
How do you get licensed and bonded in Georgia?
To obtain a Georgia Contractor License, you must pass a two-part exam, one in business and one in law, that covers the license you are aiming to obtain. In addition, applicants must complete a license application and get a Georgia Contractor Bond.
What does it take to be bonded and insured?
When you claim you’re licensed, bonded, and insured, you’re implying that you have the necessary licensure for your business, adequate insurance, and have paid for additional coverage with a bond.
A bond is a type of extra insurance that you can add to your coverage plan. It promises a payment amount if specific criteria in a contract you’ve signed are met (or aren’t met).
Let’s pretend you’re a contractor with general liability coverage. That is an excellent first step. However, a contractor bond may be required to cover additional sorts of damage that may occur on the job, as well as claims for unfinished work or bad labor.
Do contractors have to be bonded in Georgia?
Contractor License Bond in Georgia To undertake construction work in Georgia, contractors often need a license and a Contractor License Bond. The Georgia Board for Residential and General Contractors is in charge of licensing and regulating individuals and companies.
What is a Georgia contractor bond?
Contractor licensing bonds are surety bonds that various types of contractors in Georgia must obtain to ensure that they follow the laws and regulations of the state or local government organization that requires the bond. A $25,000 surety bond is required by the State Board for Residential and General Contractors.
Basic & Light for Residential Use A $25,000 surety bond, a letter of credit, an affirmation of minimum net worth, or a bank credit form demonstrating two years of banking experience are all options for commercial license applicants. Various local governments and counties in Georgia also require contractor licensing bonds as a condition of obtaining a license or permit.
Augusta, Cordele, East Point, Kennesaw, Oglethorpe, Powder Springs, Putnam County, Smyrna, Thomas County, and Valdosta are among the Georgia towns and counties that require contractors to be bonded for certain types of licenses and permits. For more information about Contractor License Bonds, see our Spotlight article. If you need a surety bond for a task you’re bidding on or a contract you’ve been given, you’ll need a Contract/Construction Bond rather than a Contractor License Bond.
Appraisal Management Company (AMC) Bond
A $20,000 AMC bond is required to operate an appraisal management firm in Georgia. This bond, which is required by the Georgia Real Estate Appraisers Board, is only $200 for a one-year period.
Contractor License Bond
General contractors in Georgia are required to have a statewide surety bond. For a $125 annual premium, you can secure a $25,000 bond for residential and general contractors.
Local contractor bonds are required by ten counties and municipalities in Georgia, in addition to the state-mandated bond:
Contact one of our surety specialists at 855-215-2160 if you have any questions about the specific bond or bonds you may require as a Georgia contractor.
Public Adjuster Surety Bond
To work as a GA public adjuster, you must post a $5,000 surety bond with the Georgia Commissioner of Insurance. Your annual bond premium will vary depending on your credit score and other financial health indicators, but it may be as low as $100.
What is a bonding letter?
When an owner or general contractor wants to pre-qualify a contractor for a project, they will frequently obtain a bondability letter from the contractor’s bond agency. The owner receives assurance from the bondability letter that the contractor has been underwritten and approved by a surety firm to support a specific project. The bondability letter is provided free of charge (it is regarded as a standard service provided by the bond agent).
b.)The bond company’s A.M. Best rating (usually required to be “A” or higher),
c.)Verifies that the bond company is on the US Treasury’s approved list and that it is licensed in the state where the work will be done.
d.)Informs the contractor of the single and aggregate bond limits that the bond company will support.
e.)Includes the bond agent’s contact information in case the owner or general contractor has any more queries.
Despite the fact that the bondability letter is non-binding and does not provide the same level of assurance as a bid, performance, or payment bond, it is still a valuable pre-qualification tool that does not require the contractor to spend any money.
Working with a Rancho Mesa Insurance for assistance with a bond program is a cost-effective solution to pre-qualify your firm with an owner.
How long does it take to get a bonded title?
Following that, the time it takes the DMV to grant you a Bonded Title is determined by their processes and how quickly they approve your papers. It could take as little as one week or as much as four weeks to complete.
How much work can you do without a contractor license in Georgia?
To work in Georgia, a handyman who works on projects worth more than $2,500 needs a Residential-Basic Contractor license.
You must pass a trade exam as well as a business and law exam. To take the exam, you’ll need pre-approval from the Georgia Board of Residential and General Contractors. In Georgia, you must have two years of experience and proof of general liability and workers’ compensation insurance.