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Contractor's license?

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Kevin2

I have been working as an architect for quite long. I have been thinking about contracting the projects that I design, with the help of my good friends in this industry. How could I get contractor's license? And what is your opinion about this whole idea? 

 
May 10, 16 11:50 am
Carrera

Great idea…depends on the state, some don’t require any license.

May 10, 16 1:18 pm  · 
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proto

barrier to entry is some study time & successful testing and the ability to post a bond for insurance

i'd say the license acquisition is the easy part

 

the job itself isn't easy 

May 10, 16 1:22 pm  · 
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Kevin2,

Each state has its own process. Please indicate state so people can point you to the correct procedures.

May 10, 16 1:45 pm  · 
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curtkram

I looked into that in my state for shits and giggles a while back.  the insurance is what made it impractical for me.  otherwise it think it's just a test and a fairly reasonable license fee.

for what it's worth rick, i bet kevin can google as well as the rest of us.

May 10, 16 2:55 pm  · 
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curtkram,

I hear ya. I concur with you about the insurance & bond stuff. The test and fee is easy stuff. It's the on-going insurance costs that is a big bite in income.

May 10, 16 3:06 pm  · 
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Dangermouse

balkins, you need income before you can complain about bits out of said income.  

May 10, 16 3:23 pm  · 
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x-jla

My state requires 4 years experience as a foreman/journeyman and an exam plus insurance and bond.   

May 10, 16 3:29 pm  · 
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x-jla

And that's only for landscape

May 10, 16 3:31 pm  · 
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x-jla

Pool contractors license is separate...etc. 

May 10, 16 3:32 pm  · 
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curtkram

would being an architect count towards the experience jla?  or working in an architect's office as the case may be?

May 10, 16 4:29 pm  · 
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x-jla

Not sure, I think education can count for some of the experience.  

May 10, 16 4:36 pm  · 
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This one pertains to Oregon:

Here's a quote from one of the insurance companies who provided a quote base for CCB: (This is for RGC tier)

 

1. CCB per-license class $129.00
2. State test $60.00
3. CCB License fee $325.00
4. $20,000 RGC CCB  Bond $280.00 (2-year bond )
5. General Liability insurance cost depends on work performed, number of active owners, employee payroll, and sub costs.

From a variety of sources: #5. would be around $1500 to maybe more. More likely be somewhere in the 3% to 10% of gross receipt.

Note the numbers and the quotes varies from one carrier to the next.

May 10, 16 4:53 pm  · 
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jla-x,

California?

May 10, 16 4:55 pm  · 
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no_form

balkins, instead of being a professional design nothing it sounds like you could become a LICENSED GC quite easily.  and then you'd actually make money and contribute rather than burden your state.  

May 10, 16 5:14 pm  · 
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no_form,

Can we stop turning threads into attacking me? Try to be civil.

May 10, 16 5:26 pm  · 
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no_form

"The test and fee is easy stuff." rwcb.  balkins, you have no idea if it easy.  you've never taken GC licensing exams.  can you stop pretending to know what you're talking about?  

May 10, 16 5:47 pm  · 
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no_form,

It is just a matter of getting enough money up front. I'll probably have to add a little bit to the figures above to factor for misc. costs associated with taking the exam. Since, they tend to not be convenient about exam locations.

Part of the strategy requires converting business into a business entity that provides limited liability protections.

It is getting all that together at once that makes the difference.

May 10, 16 5:49 pm  · 
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no_form

rwcb are you saying that you are going to become a contractor now?  

http://www.contractortalk.com/register

there ya go.  fresh meat for you to troll on.

May 10, 16 5:58 pm  · 
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"The test and fee is easy stuff." rwcb.  balkins, you have no idea if it easy.  you've never taken GC licensing exams.  can you stop pretending to know what you're talking about? 

 

The exam isn't that crazily hard. 

Have you taken the exam? I can tell you what the exam generally covers. I have a copy of the study manual for the exam. Albeit, it is not the most current edition but it is still substantially current except for where changes occurred in the laws and continuing education and regulations. I have cross checked it. Yes, I would get the current edition of the manual for study and preparations before I would take the exam. I did get the 9th edition manual back in 2010/2011. They are now on the 11th edition. 

However, the principle process hasn't changed all that much. It is more difficult than the OBAE's jurispudence exam but than the contractor's laws are more complex than the architectural licensing laws.

May 10, 16 6:04 pm  · 
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wurdan freo

Officially made the jump to the darkside last year. Licensed contractor in Denver. One of the best ways to get leads is through Architects so you would have that covered. Current project I'm working on $15k arch/struct fee $31k GC fee $150k anticipated owner payout. Yes... the contractor earns more, but time involved is much greater. I'm looking to tackle all three. Not there yet. Insurance for CM agency is $3500 includes PL. Insurance for design $4500 Gen Liability for GC $7500 Bonding is some thing you carry on a project basis and only typically required on government jobs and larger private jobs ($15 million plus) It is based on your credit score and cash reserves. Not to be confused with your bond rate which is viewed similar to a credit score. Took me six weeks to study for the ICC class B exam.

May 10, 16 6:12 pm  · 
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no_form

wurdan now that you are also a gc do you feel like you are taking back control of the design process i.e.: "master builder" as some discuss here.

May 10, 16 6:20 pm  · 
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x-jla

I have my own design business, and also work on contract basis as the design arm for a couple design/build contractors.  I find it to be a nice balance.  Working with the same contractors on multiple projects removes some of the problems that are are typical between designer and builder.  They are used to me, I'm used to them.  Having an ongoing relationship reduces that tension, powerplay, and miscommunication that ruins outcomes.   I personally would like to eventually get my contractors license and do it all, but I'm not sure if It would add to or detract from the quality and quantity of design work that I produce...

May 10, 16 7:41 pm  · 
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jla-x,

If you are the contractor, you do have some more authority in picking the sub contractors based on their qualifications including familiarity of who they have in terms of trades people. It isn't the sub contractor holding a license that matters. It is the people they have and their skills. If they have very well and experienced people or do they have a bunch of unskilled labor.... you have to assess that. There are qualified skilled tradespeople that don't carry a license as a contractor/subcontractor but they are the people who make the business work. 

You want to be sure if you subcontract that the company has the qualified workers working on the project. As the GC, you have some authority in that capacity to do so. However, the client can still be a PITA.

May 10, 16 7:59 pm  · 
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no_form

"You want to be sure if you subcontract that the company has the qualified workers working on the project." rwcb.  

says the guy who has never been a GC.  or for that matter ever built anything.

May 10, 16 8:18 pm  · 
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no_form,

Who do you think selects the subcontractors?

You say I never built anything.... LOL !!!!

I wouldn't say I am an expert tradesman but I know good quality trades people or craftsmen from crap. 

May 10, 16 8:25 pm  · 
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no_form

GC's select subcontractors, hence the "sub."  

balkins, i'm the one laughing out loud here.  you have never built anything.  if you have post it on your houz page and on here and everywhere else you lurk.  

but all you have is excuses.  no actual built work or otherwise.  and you know nothing about being a GC.

May 10, 16 8:50 pm  · 
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no_form,

I am not a construction contractor. It would be against the law for me to just go out and build a building as the contractor aside from building your own house. You have to have a contractor license before you offer construction services.

You do realize that, right? ORS 701.

If I offer photos of works I built in connection with business website or other internet based web pages, wouldn't that be claiming to be a construction contractor and perform construction services. I am not one. I would not do that.

Houzz is used for business purposes not as a personal website about myself and personal hobbies. 

May 10, 16 9:15 pm  · 
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x-jla

Rick, no it would NOT.   You do realize that, right?

May 10, 16 9:26 pm  · 
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no_form

classic balkins excuses.  

houzz is for business purposes.  so you have no business.  because apparently you're a PBD, yet have nothing to show.  apparently you build, but have nothing to show.  

now you're calling PBD a hobby?  

You do realize you're a joke RWCB?

May 10, 16 9:30 pm  · 
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jla-x,

You have to have a license as a construction contractor to offer construction services to other people. Architects may not operate as a construction contractor unless they are licensed as one. 

no_form is asking for me to post photos of works that I built on Houzz. He is trying to get the CCB after me. He's trying to entrap me in claiming those projects in a manner as if I was the contractor. 

I know what kind of trap he is trying to pull.

May 10, 16 9:33 pm  · 
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JeromeS

It doesn't matter- BCO job is open Astoria. Rick can finally be the king of architects.

May 10, 16 9:36 pm  · 
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SpontaneousCombustion

Rick that's state-specific.  There are no contractor licenses in some states.  I am an architect and it's perfectly legal for me to operate as a construction contractor in my state, no contractor license required.

Regarding selection of subcontractors:  that depends on the type of project, and the state.  States with QB processes typically don't give the GC the option to select the subs on municipal and state projects over a fairly small construction budget (the estimate for the work of the sub-bid category has to be under $10k to be exempt from that process here) - they're selected in a sub-bidder process prior to the selection of the GC, and the GC gets whoever is assigned by that process.

As for posting photos:  if you're claiming to have designed projects that have been built, you should be prepared to provide photos of those projects. There's no valid reason not to provide that info. You can of course remove private client info and exact addresses.

May 10, 16 9:51 pm  · 
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no_form

balkins, i don't need to set a trap.  you set your own.  but that's not my point.  

you can post pictures just clearly state your role.  say you post a picture of a theater.  you can write a one sentence label, "theater, astoria, org.  responsible for selecting paint colors and window decorations, design, construction, and engineering by others"  or "residential deck.  responsible for purchasing wood from home depot, design, construction, and engineering by others."

no traps.  just brevity and honesty.   

May 10, 16 10:03 pm  · 
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proto

(Thread drift)

States with QB processes typically don't give the GC the option to select the subs on municipal and state projects over a fairly small construction budget (the estimate for the work of the sub-bid category has to be under $10k to be exempt from that process here) - they're selected in a sub-bidder process prior to the selection of the GC, and the GC gets whoever is assigned by that process.

I've never seen that process at play -- does that work? Honestly interested...matchmaking based on lowest bid sounds like a recipe for disaster, pairing teams of varying quality. (I'm guessing they have authority to also choose on quality too, but, cmon, that's not really what that process is about, is it?)

(/Thread drift)

May 11, 16 11:47 am  · 
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SpontaneousCombustion

In a QB ("quality based") process state the GCs and subs are pre-qualified.  They can't be on the state's list unless they've gone through vetting by a committee that evaluates various criteria to supposedly identify only quality (and not fees).  Once they make it onto that list they can also get kicked off it for varying numbers of years or permanently, if they fail to comply with various regulations on projects that they're awarded.  GCs can make it clear on their bids that they refuse to work with certain subs, and subs can state that their bid is not available to certain GCs - so all the matchmaking is not entirely in the hands of the state - though that can potentially lose the GC or the sub the project if some other combo results in a lower combined bid.

It works and it doesn't work.  It works in that it filters out problem contractors and those with insufficient experience or resources for the project.  It doesn't work in that it takes some choice away from the GC in developing the team that might work best for them; and it adds a hell of a lot of time and paperwork to a project; and it is hard to get a high enough quality score to get on the pre-qual list in the first place so it scares away some outfits that are perfectly qualified but don't want to jump through the hoops.

May 11, 16 12:07 pm  · 
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x-jla

Sounds a bit fascist to me. 

May 11, 16 12:10 pm  · 
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nicholass817

Cost of insurance to be a GC can be a killer depending on the volume and type of work.  

I worked as a project manager for a GC during and after grad school.  We built a lot of In-N-Out burgers, other restaurants, and various other projects.  insurance was about $150k year the first year, and it was increased the next.  I don't know to what, just remember the owner getting super pissed because of the additional cost.  

My brother-in-law and sister contract custom homes....they pay ~$90k/year for their policy.  

May 11, 16 1:17 pm  · 
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Rick that's state-specific.  There are no contractor licenses in some states.  I am an architect and it's perfectly legal for me to operate as a construction contractor in my state, no contractor license required.

Regarding selection of subcontractors:  that depends on the type of project, and the state.  States with QB processes typically don't give the GC the option to select the subs on municipal and state projects over a fairly small construction budget (the estimate for the work of the sub-bid category has to be under $10k to be exempt from that process here) - they're selected in a sub-bidder process prior to the selection of the GC, and the GC gets whoever is assigned by that process.

As for posting photos:  if you're claiming to have designed projects that have been built, you should be prepared to provide photos of those projects. There's no valid reason not to provide that info. You can of course remove private client info and exact addresses.

Yes, it is state specific. Try keeping the context in mind when I said what I said. Don't you think the context has to do with Oregon at the time I said that?

States with QBS applies to public projects, typically. Lets also keep in mind that states with contractor license and QBS (for public process) is almost never design-build. The entity that is the architect and the entity that is contractor is almost always have to be separate and distinct. The Architect and the GC can not be the same, usually. It might be more a policy of how QBS is handled than it is actual codified law. 

If you are doing design-build, it is probably not a project where QBS is applicable.

May 11, 16 2:08 pm  · 
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SpontaneousCombustion

Design-build is a valid and common delivery method in many states with QBS, including my own.  I'm currently working on two design-build public QBS projects,and have been involved with many over the years.  My state has a whole book of regulations and associated training programs, documents, and procedures for design-build on public projects - and that's not unusual - most of the Little Brooks states allow D-B.

Richard you really need to stop relying on your Wikipedia-level knowledge of the world to try to advise everyone in the world.  If you don't have experience with what's being discussed then just read the thread and learn - and don't feel compelled to contribute.  This reminds me a little of the time, on another forum, that I said I hadn't been a bank in years because I deposit all checks by smartphone.  You said "that's illegal and impossible".  I said no it isn't, I've been doing it for several years.  You said "no major bank would allow that".  I showed you a list of several of the largest US banks that have been offering that option for years.  This is the same thing - I have experience in the subject at hand, and you do not.

May 11, 16 2:33 pm  · 
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Sponty,

In my area, design-build is something that is rare for QBS given that with public projects, the architect and builder are expected to be different people. It would draw conflict of interests complaints. In some things, its politically driven not law, regulatory or necessarily policy aside from policy is heavily influenced politically.

Where are you? It's probably a bit more relaxed. Let me guess, Texas?

May 11, 16 2:54 pm  · 
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SpontaneousCombustion

Nowhere near Texas, and in one of the notoriously least relaxed legislative climates in the US.  Rick again: I've worked in many QB states and nearly all have a D-B path. Oregon does allow both D-B basic and D-B Low Bid for public projects, and has permitted at least 20 of them in past 2 years.  How many D-B projects have you worked on Rick?  And how many public projects?

May 11, 16 3:02 pm  · 
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JeromeS

Let me answer that: ZERO

Go back to the Code Officials website, where they haven't figured you out yet...

May 11, 16 3:17 pm  · 
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Sponty,

How many such public projects falls within exemptions? I haven't bothered with looking for public sector work from a business point of view since 2009. I haven't bothered with using ORPIN for much aside from pointing out a project or two to an architect from time to time.

As for Design-Build, you have to have a contractor's license or a person in the business that meets that qualification and register the business and RMI for construction services.

Astoria and neighboring cities almost never selects a local architects or designers on any project involving QBS. 

May 11, 16 3:21 pm  · 
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x-jla

Can you please Stop ruining every fucking discussion.  Bout to join Miles Jaffe. 

May 11, 16 3:26 pm  · 
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SpontaneousCombustion

Why would Astoria and neighboring cities select a local architect or designer? From your own account there aren't any - except a few near-retirement one-man shops, and you.  Big surprise that they have to cast a wider net for anyone who would qualify.

That's completely irrelevant to the OP's questions. 

May 11, 16 3:31 pm  · 
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jla-x et al,

Can you please exercise your own self-discipline?

May 11, 16 3:43 pm  · 
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no_form
What's the story with Miles? He made his own arch forum?
May 11, 16 3:48 pm  · 
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Sponty, there was a firm in Cannon Beach that was qualified for these projects. All the elementary school buildings in Astoria city limits were designed by one INDIVIDUAL architect. Most of the city downtown  was designed by same very architect including a sizeable percentage of the houses in Astoria. One architect, by himself did that. Not some big 50+ person firms.

Every architect by virtue of license is suppose to be able to be qualified to design ANY building of any size by themselves. Especially three story buildings.

Wouldn't you think some near-retirement one-man shop architects should be able to handle that. Every friggin' one of you should be able to. 

May 11, 16 3:53 pm  · 
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SpontaneousCombustion

Are those one-man near-retirement shops on the pre-qual list?  Are you?  Have they applied to be on it? Have you? Have they gone after the public projects? You already said you haven't.  It just isn't making much sense to me that you think there's something wrong with out-of-town designers being selected for these projects when there don't seem to be any local alternatives. 

May 11, 16 4:03 pm  · 
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JeromeS

Every architect by virtue of license is suppose to be able to be qualified to design ANY building of any size by themselves. Especially three story buildings.

Not true- States often have prequalification lists for both A/E professionals and Prime Contractors.  These sometimes include dollar limits.  In States where I have experience, a one-man shop has a 5-million dollar limit.  This likely precludes him from any NEW school project.  A firm with a couple of partners and 1 or 2 other licensed professionals will get a $25 million dollar limit, opening the door to a new level of work.  Some contractors we've worked with on the other hand have no dollar limit with a bond capacity to match.

May 11, 16 4:09 pm  · 
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