Demystifying General Contractor and Licensed Contractor Requirements for Industrial Applications

Putting Your Project in the Right Hands

A lot is riding on the success of your system installation, quite literally. Pallet racking, conveyors, modular offices, mezzanines, etc., are the support systems for your warehousing and distribution business; therefore, they must pass the test for safe, sturdy, durable construction.

To help you start on the right step, knowing the difference between a Licensed Contractor and General Contractor is useful. You will work very closely with these trusted individuals to make your vision come to life. 

General Contractor vs. Licensed Contractor – Who Helps Me Do What?

Licensed Contractor 

A licensed contractor has the authority to perform a dedicated trade function, such as plumbing, framing, electrical, etc. The process of becoming a licensed contractor is time-consuming and costly, and individuals must comply with state mandates to maintain their licenses: 

• Must pass a state competency test for each trade license
• Authorized to apply for and receive permits related to their trade
• Carries both liability and worker’s compensation insurance
• Bonded with the state to protect against failure to complete the job
• Submit financials upon each renewal proving financial ability to meet license limit

General Contractor (GC)

Assumes responsibility for managing the entire project through to completion. The GC must understand the role of each trade and where to schedule each function within the building process. Much like the Licensed Contractors, the GC must meet the following criteria to maintain their license:

• Pass state exam that qualifies them to perform or oversee the work
• Prove financial liquidity to preserve and renew their license (must prove they are solvent and to can handle the amount of the contract)
• Fully insured – worker’s comp and liability 
• Answer to the State for any discrepancy and nonperformance of work

Protect Your Best Interest Minimize Your Risk

General Contractors offer the best choice with the least risk when installing conveyors, pallet racking, mezzanines, and modular buildings. State law may require a Licensed GC, but it’s also in your best interest for several reasons. 

The GC manages the licensed trade contractors among other responsibilities, such as:

• Schedules and supervises the trades through the building process — a site supervisor often monitors day-to-day activities for the GC 
• Coordinates material purchases and deliveries
• Prepares and submits permits
• Schedules inspections
• Manages worksite safety, quality of work, and material conditions
• Ensures compliance with building and fire safety codes, local and state ordinances, and regulations
• Experienced in on-time and on-budget Permit project execution and managing delays that can occur due to local authorities or other variables
• Hires dependable and proven engineering, project management, and other subcontractors

The consequences for using an unlicensed General Contractor could result in loss of Certificate of Occupancy, penalties and fines, significant delays in project completion, and the necessity to hire another vendor to complete the work and satisfy the licensing requirements.

Legitimate vendors protect their GC license and don’t attempt to skirt local or state authorities for their work. Clients can trust the work performed by qualified personnel that specializes in their area of expertise.

How Do I Confirm My GC is Adequately Licensed?

Clients should ask about a GC’s current license status before any bid process is determined.  The GC must also write their License number on the front of any bid envelope and note the number on their proposal.

A licensed GC should provide their State License Certificate stating the work they are qualified to do and the monetary limit of their license. For example, in the State of Tennessee…

Tennessee Classifications – All licenses are assigned a classification, such as BC (Building); CE (Electrical); CMC (Mechanical); HC (Heavy Construction); HRA (Highway, Railroad & Airport); LMC (Masonry); MU (Municipal Utility); Environmental; and Specialties (landscaping, excavation, roofing, cell towers, solar panels, audiovisual, etc.,).

Classification must cover 60% of the total project to bid unless they have a commercial classification. Then they may bid on the project but are required to subcontract to a properly licensed contractor for the portions over $25,000.

The WOI GC License & Satisfaction Guarantee

The Warehouse Optimizers, Inc. (WOI) team is comprised of industry experts, licensed engineers, professional project managers and installation crews, and yes, Licensed General Contractors. 

We are an independent source with professional working relationships with leading manufacturers and systems suppliers. We will integrate all your warehouse components from software to storage rack to conveyor and processing devices to ensure your project goals are met. We guarantee it.

The WOI 5-Step Total Satisfaction Experience™ is the process that ensures success. We will:

1. Listen to your needs and execute a solution
2. Execute your project with special attention to your unique application
3. Commit to and communicate project timelines
4. Ensure a safe environment and safe installation
5. Pay close attention to the detail  of the finished product

Contact WOI today to discuss your upcoming project plans. Call (865) 540-4004 for a prompt response. 

WOI proudly serves customers throughout the Southeast, including KENTUCKY, TENNESSEE, NORTH CAROLINA, ALABAMA, AND FLORIDA.