Contractor

A company or a person licensed to perform certain types of construction activities is called contractor. These activities can be constructing, repairing, modifying or renovating buildings or other structures and all trades and crafts associated with such work. 

Types Of Contractors: There are various types of contractors: 

1. General Or Prime Contractor: A general or prime contractor is a person who is responsible for all facets of construction of a residential or commercial building or renovation. He is the person who hires all of the subcontractors (i.e. plumbers, electricians, framers, carpenters, etc.) and suppliers for a project. The general contractor is ultimately responsible for the quality of the work performed by subcontractors. He himself is hired by the owner to plan and oversee the entire job. 

2. Remodeling Contractor: A general contractor who specializes in remodeling work.

3. Specialty Or Sub Contractor: A specialty or sub contractor works for another general contractor & licensed to perform a specialty task e.g. electrical, side sewer, asbestos abatement.

4. Independent Contractor (IC) Or Freelances: Independent contractors are also called ICs, consultants, freelances, free agents and just contractors. Regardless, all are self-employed for tax reasons in the U.S. and essentially the same in practice. But, speaking of tax reasons, the IRS has only two distinctions: independent contractor or employee. If you're planning on contracting with a freelancer to work on a project, you need a written contract to protect your interests. A Freelance Agreement is an arrangement in which a company or business contracts with another person to perform a specific task or service. Usually the independent professional or freelancer is not your employee and does not receive wages or benefits. He or she is paid according to an agreed-upon arrangement. 

5. Construction Manager (CM): A person or firm responsible for the execution of a construction project, is called construction manager. Its his duty to see that the project is running smoothly. The CM typically does not self-perform any of the work. The CM maintains job records, evaluates changes to the contract, manages the construction schedule, resolves construction issues and reports on the status of the work.

Contractor License: A contractor must be licensed by an examining board before he or she can bid on the project. Each state has it is own specific laws that govern contractors licenses. Each state requires all contractors that are performing work to have an appropriate contractors license. Contractors licenses are designed to protect the public from faulty work or unqualified contractors, as well as help enforce safety and building codes. The penalty for working without a contractors license is usually a fine. Licenses must be renewed yearly. 

Note: Homeowners may act as their own contractor on work performed on their primary residence and do not need a license to do so. 

There are five types of contractor licenses:

• Class I - General 
• Class II - Residential 
• Class III - Jobber 
• Class IV - Subcontractor 
• Class V - Utility 

Requirements To Get Contractor License: It require license applicants to take a written examination on construction law, business organization and the skills of their occupation. Applicants may have to prove financial ability to operate a contracting business. Letters of reference from previous employers, customers, bankers, architects or engineers may be required. Many states also require proof of on-the-job experience. Nearly all states have basic requirements & they are:

• At least 18 years old with a high school diploma or the equivalent.
• Proof of U.S. citizenship or legal residency.
• Documentation on any other occupational license you hold in the state.
• Two passport-size photos.
• Explanation of citations, violations or liens resulting from construction work.
• Corporations doing business in any state must be registered with the Secretary of State.
• Bidding for work on state projects usually requires pre-qualification.
  
  
  

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