In the construction industry, it’s vital that all contractors have the proper licensing to work on any of the projects they are currently engaged in. A contractor license can be obtained from the Tennessee Board for Licensing Contractors. This department was established to “assure quality and fair construction practices exist in all phases of the industry in order to protect the safety and welfare of the public.”
As a Nashville license defense attorney will discuss in this two-part article, there are a number of reasons why a contractor may be stripped of their license. Losing licensure will severely limit your ability to grow your contracting business. In the State of Tennessee, any projects exceeding $25,000 in value require a contractor to be licensed. Reciprocity agreements do not exist in the Volunteer State, so out-of-state contracts should be wary when engaging with clients that are located in Tennessee. If you are currently working without a license, consult a Nashville license defense lawyer to learn more about how you can have your license reinstated.
1. Misallocation of Funds
As a contractor, you’re responsible for following your proposed cost estimates and ensuring that projects have the proper funding. Sometimes, inaccurate cost estimates lead to contractors underestimating the cost of a project. They may attempt to reallocate funds from another project to make up the difference, but this commonly leads to a complaint from the owner.
2. Project Abandonment
Another outcome that often materializes when project funding grows scarce is project abandonment. In short, a contractor may feel overwhelmed by an active project and decide to abandon the project altogether. Needless to say, this will result in friction with the owner and potential litigation. Professionals should know better; after all, running away from a problem doesn’t make it go away.
3. Improper Licensure
In the State of Tennessee, there are a vast array of licenses intended for particular jobs. For example, there are different licenses for HVAC contractors, plumbing contractors, electrical contractors, commercial contractors, residential contractors, and more. If you take on a job without the proper licensure, you’re exposing yourself to a risk that could limit your ability to work on any job whether you’re licensed for it or not. Has this happened to you? If so, consult a Nashville license defense lawyer.
4. Faulty Permitting
Even licensed contractors can expose themselves to conflict by failing to obtain the proper permits prior to breaking ground. This might sound like a no-brainer, but in the hectic rush to keep up with competitors, some contractors may overlook the permitting phase. When this happens, you will likely require help from a Nashville license defense attorney.
To learn more about common allegations against construction professionals, read part two.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.