Top 4 Benefits of Getting a Contractor License in Your State

Summer is here, and the time is prime to put these extra-long days to good use by finally finishing home improvement projects you started months ago. There’s really no better time to build that pool, gazebo, or Zen garden than right now.

Before you start though, you might want to consider getting a contractor’s license. It might seem like a huge feat now but getting licensed brings many benefits of which you might not be aware.

Here are the top 4 reasons to consider taking a contractor’s exam and getting certified before you finish your home DIY project:

1. Certain home renovations require a license

Let’s say you’ve been dreaming of a kitchen renovation. A big renovation like that—after including walls, flooring, cabinets, countertops (granite is a must, right?)—could easily cost $20,000 or more. In many states, a license is required for any project that is more than $10,000. This is to ensure your safety, as well as the longevity of the house – it’s important to make sure the renovations are up to code. Even building a pool needs a license if the project goes over $5,000.

Consider the rules and requirements for licensure in your state when it comes to building large projects. For example, Alabama has specific laws and requirements, as do most states, for what projects require a Home Builder’s license vs. a General Contractor’s license.

2. A license guarantees safety

When thinking about big home improvement projects, one of the first things that should come to mind is how safe the project is. The last thing you want to do is endanger yourself, your family, or your home by doing part of the renovation incorrectly.

Other than hiring a contractor, the most cost-effective way to avoid a mistake during construction is getting your own license. Having a contractor license ensures that you at least know the basics required to complete any project covered under that license. You and your family can trust that you have the necessary skills to complete the project without putting anyone in danger.

3. You’ll increase your credibility

You may be in a position where you’re looking for extra work or even just a side hustle. While you can still find contracting work without a license, it’s the equivalent of trying to find a job without a high school degree – you’ll always appear more credible if you have the right credentials.

Not only that, but only smaller jobs will be available to you without a license since larger jobs require a license.

Even if you don’t want to start a career as a contractor now, you might in the future. Having a license opens the door for potential work and more income.

4. Passing the exam is very doable

There are plenty of resources available to ensure you do your best on the exam. If you choose the exam prep route, exam prep companies provide the answers to any questions you may have and can fill you in on specific requirements for your state.

If you’re nervous about the exam, a third-party to coach you can be incredibly calming and confidence-boosting. In addition, most courses will offer a “fail-proof” guarantee, in which they will ultimately refund you the cost of the course if you do not pass.

Bottom Line

If you have plans to:

  • Start any sort of large improvements on your home
  • Build a home
  • Search for extra work

Then getting your contractor’s license is the most secure way to ensure that you are doing the job correctly, safely, and according to your state’s designated guidelines. It’s much smarter to go ahead and put forth the extra effort on the front end than end up getting fined for not doing a renovation correctly.

In addition to all of that, getting your license will arm you with the confidence you need to tackle this big project!

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