If you are performing construction projects in Georgia that are over $2,500, state law requires you to have a contractor’s license. With a limit at $2,500 it is a good idea to get your contractor’s license if you are planning to perform any work in Georgia. To start planning for your Georgia contractors license, you should become familiar with the testing and application process. Becoming knowledgeable in the application process and becoming familiar with the Georgia Contractor Licensing Board is helpful. It is important to know what the application requirements are before you start studying for the exams that you will be taking. This will make the application process much less stressful and allow you to focus on studying.
We will be discussing the Georgia General Contractors license. This license gives you the ability to bid, build, and improve any size of commercial or residential project. The below list outlines a checklist that we have put together to help you prepare to get your Georgia contractors license:
- Take a NASCLA Exam study course
- Pass the NASCLA Exam – submit NASCLA Exam transcript with application
- Approval for and pass the Business and Law Exam – Submit pass notification with application
- Form your entity that you will be performing work under
- Be at least 21 years old
- Include copy of official college transcript/diploma/certificate
- Complete the projects/experience questions
- Complete the net worth affirmation or financial documents
- Send in secure and verifiable document (copy of driver’s license, passport etc.)
- Complete the affidavit of citizenship
- Complete immigration documents if applicable
- Complete the Bankruptcy Documents if applicable
- Obtain worker’s compensation insurance if applicable
- Obtain general liability insurance
- State disciplinary actions if applicable
- Submit the application fee ($200 + $10 processing fee)
The NASCLA Exam
The NASCLA exam is a 23 book, open book exam. You have 5 ½ hours to complete the exam. There are 125 questions on this exam, however only 115 questions count. The remaining 10 questions are potential future test questions. This means that you must get 81 of the 115 counted questions correct to pass with a score of 70%. The exam is open book, so being able to navigate the books is the most important piece to this exam. A quality study course is highly recommended, as studying 23 books on your own will not be efficient.
In Georgia, the NASCLA exam will serve as the trades exam to become a commercial and residential licensed general contractor. This is considered a General Contractors license in Georgia. Georgia also has a Residential Basic Contractor license, and a Georgia Residential Light Commercial Contractors license. However, we recommend the General Georgia Contractors license due to the freedom that it gives you to perform all types of work.
Also, the NASCLA exam is a more universal exam to allow contractors to carry a license in multiple states. Currently, the NASCLA exam is accepted as the trades exam in 16 different states and the U.S. Virgin Islands, so the reciprocity is unmatched. If you are planning to get your Georgia contractors license, NASCLA is a great testing option. You must apply for the NASCLA exam, which takes about 7 business days to return. Once receiving your application back, you can schedule your exam through PSI Exams.
The Georgia Business and Law Exam
There are 50 questions on the Georgia Business and Law Exam. You must answer 35 of the 50 questions correct to receive a passing grade of 70%. The exam is 120 minutes long. The book used for this exam is NASCLA Contractors Guide to Business, Law and Project Management – Georgia Residential & Commercial Contractors, 3rd Edition. Just like the NASCLA Exam, the Business and Law Exam is taken through PSI Exams. We do not offer a course for this exam. There are a few reasons for this. One being that it is a single book, open book exam. Also, the NASCLA exam includes a business and law book within the 23 books that you are tested on. Much of the information is from that same book! The specific Georgia rules and regulations should be your main focus on this exam as you will probably already have the other information memorized from your NASCLA exam studying. Many other course providers will try to sell you on a Business and Law study package. We have confidence that you can study this one book on your own to pass this exam.
Form Your Entity – Georgia Contractor License
There are two application processes for the Georgia General Contractors license. The first is the Individual License application. This is for those looking to perform work under his/her own name as an individual or a sole proprietorship. The second application is for a Qualifying Agent License. This is for those who are applying as the qualifying agent (test taker) for the license holder (LLC, Corporation etc.). So, if you are planning to operate your Georgia contractors license under an entity other than a sole proprietorship, go ahead and create the entity before starting the application.
Education and Experience
The Georgia contractors license application currently has three options to completing the education/experience requirements. Option A is a four-year degree from an accredited college or university. Your degree must be in engineering, architecture, construction management, building construction, or related field acceptable to the Division. You must also have one year of work experience in the employment of or as a general contractor – or other proven experience deemed substantially similar be the Division equaling at least four years in the aggregate. Option B is a combination of college level academic accredited courses and proven practical experience working as or in the employment of a general contractor or other proven experience deemed substantially similar by the Division – equaling at least four years in the aggregate. Option C is at least four years of proven active experience working in a construction industry related field, at least two of which shall have been as or in the employment of a general contractor, or other proven experience deemed acceptable by the Division and at least one of which shall have been in or relating to administration, marketing, accounting, estimating, drafting, engineering, supervision, or project management, or functions deemed substantially similar by the Division.
The Financial Responsibility Form
The financial responsibility form should be for yourself or your entity’s current status, whichever you are applying under. If you are applying for an Unlimited Georgia Contractors License, you or your entity must have a minimum net worth of $150,000. If you are applying for a Limited Georgia Contractors License, you or your entity must have a minimum net worth of $25,000. A Limited Georgia Contractors License allows a contractor to perform individual projects up to $1,000,000.
During completion of the Financial Responsibility Form you will also need to complete list of questions. These questions are to confirm if you have previously filed bankruptcy, had tax related issues and so on. You will also need to confirm if you have workers compensation insurance, which is a requirement in Georgia if you have 3 or more employees. You will also need to submit a COI documenting that you carry general liability insurance in the amount of $500,000 per occurrence.
General Information
There is a general information section on the application. There are number of questions that you will need to answer to complete this section of the application. For the General Georgia Contractors license, you will need to confirm if you have completed the NASCLA Exam, in which you will need to submit your transcript. You will also need to confirm if you have passed the Business and Law Exam. Following these questions there are several questions relating to criminal history.
Affiliations – Georgia Contractor License
There is an affiliation section on Georgia contractors license application. This is to confirm if your affiliation with the entity and what your role is.
Application Affidavit
The application affidavit is for you to select your citizenship status and send in a copy of your verifiable document. This document confirms your citizenship during the application process.
Conclusion – Georgia Contractors License
A Georgia contractors license is a great achievement that opens numerous opportunities. It is also a requirement if you are planning to perform work over a value of $2,500. Whether you are trying to launch your general contracting company, or add more value to your resume, a contractor’s license is a valuable achievement. By taking the NASCLA exam you will also open the door for being licensed in numerous other states. So, if you start in Georgia and want to spread your business to other territories you can do that too. You will need to stay committed to studying and making sure every item on the application is accurate. This is a great commitment but even better achievement. Good luck!