A legal permit to do something is called a license. For instance, for driving a vehicle, the driver should have a license. Similarly, a building contractor should have a contractor’s license. Such a license is procured by paying a fee or complying with some procedure and proving the compliance to the authorities. Such licenses are regulated by the respective licenses law. In the U.S., there is a federal licenses law. In addition, each state has its own licenses law.
Following are Some of the Important License Laws:
It is advisable for a contractor to obtain a contractor’s license before undertaking a contract for building construction. The Contractor Licensing Board is a government organization which is responsible for issuing and revoking contractor licenses. Licenses are taken away either on the complaints of consumers or if the board finds the contractor flouting rules or not complying with procedure.
Having a license makes it easier for the contractor to make a claim in case of breach of contract by the client. If it is found that the contractor had made a fraudulent claim of being licensed, disciplinary action can be initiated against him under the licenses law.
Consumers should always check with the licensing board whether a contractor has a license before entering into a contract with him. If the consumer finds that the contractor does not have a valid license, he should file a complaint with the contract and licensing board as well as contact his lawyer to initiate proceedings against the contractor under the licenses law. The details of contractor licenses are usually published on web sites.
As per the U.S. licenses law, certain businesses like those involved in meat processing, medicinal drugs, interstate delivery, investment services, radio, TV stations, tobacco products, alcohol and firearms, need to obtain a federal license to commence operations. Additionally, individual states also have their own business license laws. These apply to certain specified businesses. Some of these licenses are for a limited period. Some of these licenses will be renewed only on retesting especially when the business calls for certain specific scales. Some states also use licenses as a means to collect revenue.