Whether you are remodeling your home or building a new one, you'll need a good General Contractor to help you. These contractors have many different responsibilities, from estimating costs to managing the project. In addition, they are liable for any work they do. This means they have to be licensed and bonded.

General contractor
Whether you're planning to renovate your home or build a brand new one, a general contractor is a valuable member of your construction team. These experts can help you estimate the cost of your project and identify potential issues.

Before hiring a general contractor for your residential building, you need to make sure he or she holds a valid license. These licenses are required in most states. The Better Business Bureau (BBB) can provide information about contractor licensing boards in your state. The BBB can also provide customer satisfaction ratings.

Besides a license, you may need to provide a surety bond. Some states have different bond requirements. In Louisiana, for example, the minimum amount of bond is $1,500. The amount may vary by parish.

During your research, you should also ask if the contractor has a list of residential clients. This can help you identify whether he or she is reliable and has the right financial references. You should also request to see some of the construction projects that the contractor has completed.

The construction industry can be a competitive and fierce one. Finding a good contractor takes time and research.

A contractor should provide a written contract detailing the services they will provide, the materials and tools they'll use, and the payment schedule. It should also include an outline of the project's scope.

Bonding requirements
Depending on where you live, your bonding requirements may vary. You may have to get a performance or bid bond, or both. A maintenance bond is also required after closing your project.

The construction industry is a complex one, and a surety bond is a great way to mitigate any risks associated with doing business. Whether it's a large or small project, you'll find yourself in a tough spot if you can't prove you're qualified. You'll need to show that you're capable of delivering on your contract, and you'll need to prove that you're doing it right.

Surety bonds aren't cheap, but they're well worth the expense. You'll pay between 1% and 2% of the total amount. And if your project fails, the bonding company will cover the losses.

There are several reputable companies that specialize in providing construction bonds. Contact Surety Bonds Direct for a quick and inexpensive quote. They offer free quotes and are happy to help with the bonding process.

The most important thing to remember is that you'll need to know the appropriate requirements for your state or jurisdiction. You can't get a contractor license without a surety bond. It's also worth noting that you can't bid on large projects without a valid bond, or the job will get stuck in the mud.

Penalties and fines for unlicensed contractors
Depending on the laws in your state, penalties and fines for unlicensed residential building contractors can range from a few hundred dollars to thousands of dollars. Depending on how many times a contractor has been convicted of unlicensed contracting, he or she may face a jail sentence.

There are a few defenses that an unlicensed contractor can use to avoid jail time, including not working as an employee and not holding a license. These defenses can often be successful in court with the help of an experienced attorney.

Performing any work without a license is considered a misdemeanor. First time offenses carry a fine of up to $500, while a second offense carries up to $1,500. The maximum penalty for unlicensed contracting is $2,500. This fine increases by an additional 83% after each subsequent violation.

Unlicensed contractors can also be charged with fraudulent schemes and artifices. Depending on the jurisdiction, this charge can carry up to six months in jail. A subsequent offense of performing electrical or plumbing work without a license is a Class 6 felony, which is punishable by up to 18 months in jail.

Depending on the type of work, unlicensed contractors may have the option to file mechanics liens. This can make it difficult to refinance or sell a home. A lien is a form of payment that can be used to recoup money owed to a contractor.