+ When do I need a contractors license in Virginia?

This question is actually slightly tricker than what appears at first glance! The broad most applicable answer would be "if you are on a construction site providing any labor or installing materials", you need to have a contractors license.

But what about if you're a material supplier?

Well in Virginia there is an exception to the requirement if you are a material supplier, but only if you are exclusively a supplier and do not provide construction or installation services.

+When do I need a contractors license in Maryland?

Maryland makes when a contractor's license is required a little bit more explicit. Simply put, if you are doing "construction business" in the State of Maryland, you need a contractors license.

Now you are probably wondering what constitutes "construction business?". "Construction business" includes:

• Paving or curbing a sidewalk, street, or other public or private property;

• Excavating earth, rock, or other material, doing work on or in a building or other structure that requires the use of a building material, including paint, stone, brick, mortar, wood, cement, structural iron or steel, sheet iron, galvanized iron, metallic piping, tin, lead, electric wiring or other metal, or any other building material;

• Or paving or curbing on sidewalks or streets; or excavating.

Maryland imposes additional requirements on speciality trades, such as HVAC work as well as certain requirements for out of state contractors. You can read more about that in our newsletter on Maryland Contractor Licenses.

+ When do I need a Contractor's License In D.C?

The District of Columbia is somewhat unique in the sense that all persons doing business in DC, including ALL Contractors and Suppliers, are required to have a Basic Business License.

D.C has specific requirements and procedures for individuals and companies that classify themselves as General Contractors or Subcontractors, and you can read about those requirements in our newsletter on D.C Contractor Licenses.

+ What Happens If I Don't Get the License or Don't Have One

An important thing to keep in mind is that almost all states have some form of penalty associated with the failure to be properly licensed. These can range from simple civil penalties to more serious criminal penalties. Some of the more important ones are outlined below.

Virginia:

• If you were aware that you needed a contractor's license and you entered into a contract in spite of that fact, you will not be able to enforce the contract as the contract becomes "void". However, if you substantially perform the contract and had no actual knowledge that a license or certificate was needed, this rule does not bar your recovery.

• Not having your license is also a bar to enforcing your mechanic's lien rights, even if you had no idea one was required.

Maryland:

• Much like the case is in Virginia, an unlicensed contractor risks being unable to establish mechanic's lien rights if the licensing requirement was pursuant for the protection of the public.

• A home improvement contract between an unlicensed contractor and homeowner is similarly unenforceable.

D.C.:

• D.C's Department of Consumer and Regulatory Affairs has the authority to investigate any complaints made by homeowners against any contractor and impose fines if necessary.

• If a contractor violates any provision of D.C's licensing laws and regulations the contractor can face a fine of up to $300 or be imprisoned for up to 90 days or both upon conviction.

• if the statute was for the regulatory purpose of protecting the public, then the contract will become void and uneforceable, leaving a contractor unable to recover monies for work performed and leaving them without the ability to exercise mechanic's lien rights.

These are just some of many penalties that you can face if you don't have your license. Don't be caught off guard, check out our articles on contractor's licenses or reach out to us to discuss your claim today.