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Class A vs. Class C License: Does it matter?

13 years ago

Have interviewed two contractors for my bath renovation, one with a Class A License, the other with a Class C License. Does this difference matter?

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Comments (4)

MongoCT
13 years ago
The different classes (A/B/C) simply denote the size of the jobs the contractors can take on.

To get a Class A license the contractor needs a higher corporate net worth (proven through a financial review) and needs more years of experience in the field. Those qualifications allow him to take on unlimited ($$$$) projects.

A Class C contractor doesn't need to show any corporate net worth, and only needs a couple of years experience. Because of that, a Class C license restricts the contractor to taking on projects with a max value of $10,000 per project, and he can only bill something like $150k a year.
coolbeansw
Original Author
13 years ago
Mongo, to clarify, is it illegal for a Class C to take on a $30K project? And what does it take for a contractor to upgrade his classification?

I really like this guy and he did a fantastic job on my friend's $12K bath. But his card simply says "licensed and insured", so I took it upon myself to look him up on my state's licensing website. That's how I learned he's got a C class.
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MongoCT
13 years ago
I did some work for a buddy down in Fairfax County a while ago. Bailed him out of some trouble. The department down there gave me reciprocity so I could oversee the work and get things back on track. It was sort of funny, the licensing guy slid a set of plans they were reviewing across the table to me and asked me to pick them apart. Turned out it was the building department guy's own house. I picked too much! Even though they didn't have to, they signed me off but did charge me an almost $400 fee for the Class A.

I don't know how they actually go about enforcing compliance, but I remember there was a daily fine and a misdemeanor charge to the offending contractor. But again, as far as enforcement and who does it, I have no clue.

Class C is the lowest level. To get to Class B or A he'd possibly need to take a test, show net worth, show references, and show experience, and pay a slightly higher fee. I don't recall the specifics. There's got to be some guidance on your state's website.

If you really like the Class C guy, then I'd say talk to him about it. There might be honest leeway for him to take on the occasionally larger job by pairing up with another contractor. The Fairfax guys I dealt with were real sticklers. Very territorial. To work across town and county lines it was very common for contractors to form an alliance of sorts. Your guy might have somethign like that in place. Or he may not.

You could also call your state's licensing department. Just tell them your scnario, and ask what is the downside?

I don't know if there are any protection limitations for you...meaning the state may have a slush fund for homeowners who get screwed by their contractors, and their coverage limit is "$X for A licensed work, $Y for B licensed work, and $Z for C licensed work". Worst case for you is your guy walks and leaves you $20k in the hole but his "C" license only affords you $5k of coverage from the state's slush fund. Again, that's all supposition, I have no recolection if your state even has a protection fund in place.

An alternative would be for you to break your $30k contract into three $10k contracts. It's perfectly legal to do so.

If the Class C guy is a stand-up guy, talk to him. He's licensed as a "C", that's a good thing. At least he's licensed and you know he does good work. Ask him the question. You want to hire him but you want to be compliant. It might be the impetus for him to upgrade to a "B" license.

And good for you for running his numbers. It's always good to get the insurance # and call the company to makes sure the policy is still in effect and not lapsed.
coolbeansw
Original Author
13 years ago
Mongo, thank you! I really appreciate your input.

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