Permits and Contractor Licenses

Depending on the size of a job and where a client lives, a permit might be required for a project. Permits protect both the client and contractor, and while they can be expensive, they are worth the expense. Contractor licenses are also important because they show the contractor has taken and passed a test called the International Building Code and has at least 3 years applicable field experience.

Different jurisdictions have different requirements and different application processes for permits. It's the contractor's job to know the various requirements and application processes as well as to hold licenses in those jurisdictions. I currently hold nine contractors licenses in different cities and counties; this means I'm licensed to work in these different places and that I can pull permits when required.

Some positives of permits: client protections. Permits keep contractors honest and required to provide a level of quality work. Different parts of a job must be inspected by a qualified inspector who makes certain the work is up to code. For example, in Denver I have to have my framing work inspected before I can move forward on drywall; this is a client protection to ensure my work is quality and up to code.

Permits also help jurisdictions with tax appraisals and assessments, which benefits a client when deciding to sell a house. The house is valued greater based on the work and can be sold for a larger amount of money.

There are some problems with permits too. The first is cost. A permit can cost approximately $250, depending on jurisdiction. It depends on which city or county will issue the permit. Sometimes, it can take awhile for a jurisdiction to review site plans and issue a permit, adding time to a job. I can't legally start a job until the permit is ready.

Another problem could be an older house that needs to be brought up to code for life and safety issues. Depending on what needs to be improved, this will add time and money to a project. Clients need to consider their budgets, of course, but they also need to consider how a faulty electrical system or old plumbing might impact their lives.

During a project, inspectors need to check the contractor's work. I mentioned earlier about having my framing checked. Any electrical work needs to be inspected, as does any plumbing work. If I take a wall out, my work needs to be inspected to make sure the home is safe for its residents.

When inspectors come out to a job, they can ask to see my contractor license, which I have with me at all times. My license(s) show my knowledge and capability with different building departments and helps inspectors know I'm capable.

Also, for potential clients, you can actually look up a contractor online to make sure they are licensed before they come to your house. Here's a site if you're interested: https://apps2.colorado.gov/dora/licensing/lookup/licenselookup.aspx

Finally, all permitted projects require a final inspection to make sure the work has been done correctly and the house is safe to inhabit. Once the final inspection is completed and the final bill is paid, the client is able to fully enjoy their updated residence.

One last word about permits: permits also protect contractors from clients who won't pay for the completed work. When contractors submit a bill for completed work, they should get paid, but there are clients, believe it or not, who refuse to pay. A contractor can pull a lien on the permitted property until their bill is paid. No contractor wants to go to that step, but there are those who try and cheat contractors.

Permits and contractor licenses are an important part of home remodeling