Building Contractors
Before you contract to have a home built or to have repairs or remodeling done on your home, there are certain things you should know. First of all, at the present time Georgia has no statewide licensing requirement in effect that applies to all construction contractors.
The General Assembly did pass a bill in 2004 to establish a State Licensing Board for Residential and General Contractors (O.C.G.A. Sections 43-41-1 through 43-41-17) and provided start-up funding the following year to set up the Board. In 2006, the legislature extended until January 1, 2008, the date when licensing requirements actually go into effect and enforcement of the standards will begin.
Even then, certain specialty occupations, such as roofers, painters, drywall contractors and repair handymen, will be exempt and thus still not licensed by the state. Utility-related trades such as plumbers, electricians and air-conditioning contractors are already regulated by a different entity, the Georgia Construction Industry Licensing Board.
Otherwise, for now, most contractors are subject only to county or city licensing requirements. If you have questions about whether a tradesman needs a state license, you may contact Georgia’s Secretary of State. You can also check with your county or city government to make sure your contractor has the proper licensing, or to report someone operating without the required local license.
Note that the General Assembly passed another recent law, the Right to Repair Act (O.C.G.A. Sections 8-2-35 through 8-2-43), that changed the process for suing a builder, subcontractor or design professional for defective construction or remodeling of your home. Owners of new and old single-family homes, duplexes and condominiums must follow all of the Act’s requirements (summarized in the link below) in order to file a lawsuit, and buyers must be given notice of the new procedure in their sales contracts.
Summary of Georgia’s Right to Repair Act
Signs of a Possible Scam
These indicators, while not necessarily deceptive in nature, point to potential problems and are red flags warning you to exercise caution. Does the contractor:
- Solicit door-to-door?
- Just happen to have materials left over from a previous job?
- Only accept cash payments?
- Ask you to get the required building permits?
- Not list a business number in the local telephone directory?
- Tell you your job will be a “demonstration?”
- Pressure you for an immediate decision?
- Offer an exceptionally long guarantee?
- Ask you to pay for the entire job up front?
- Suggest that you borrow money from a lender he or she knows?
Tips for Choosing and Working with a Contractor
- Ask friends, neighbors and coworkers for referrals.
- Contact local trade organizations, such as the Home Builders Association of Georgia, to find contractors in your area.
- Ask the contractor for references of customers who had projects similar to yours. Contact each reference and inspect the work if possible.
- Get written estimates from several companies for identical project specifications.
- Always insist on a contract for work to be performed, with all guarantees, warranties and promises in writing.
- Agree on start and completion dates and have them written into the contract.
- Consider setting payment terms in conjunction with completed stages of the job.
- When the job is done, make sure it matches the terms of the contract.
- Do not pay for any work that is incomplete.
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