HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform
Main Menu
Home
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
News
Latest News
HOBB News
Editorials
New Jersey
New Jersey & Texas
Write Letters to the Editors
TRCC in the News
Texas TRCC Scandal
Survey
Fair Use Notice
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration
Georgia Passes Law to License Home Builders
Sunday, 07 January 2007

Georgia to require licenses for home builders in 2008
As of Jan. 1, 2008, general contractors in Georgia must have a state license in order to build houses. The requirements are fairly stringent, but many area builders think the law is a good idea...The general contractor category also requires a minimum net worth of $150,000 and a credit line of at least $50,000. The latter requirement is aimed at preventing scenarios in which a contractor goes bankrupt and leaves a project unfinished. But it also could make it more difficult for new builders to get into the business.

Georgia to require licenses for home builders in 2008

The Times


Scott Rogers The Times
A new home nears completion in the Deer Creek Crossing subdivision in northern Hall County. Beginning on New Year's Day 2008, all general contractors must be licensed by the state as part of a law designed to protect consumers against unreliable, unethical contractors.
January 3, 2007 

As of Jan. 1, 2008, general contractors in Georgia must have a state license in order to build houses.

The requirements are fairly stringent, but many area builders think the law is a good idea.

"I would say that all honest contractors are glad to see this in place," said Bill Goode, owner of Victory Custom Homes in Dawson County. "I don't see that it will cause any undue hardship."

Goode said he hopes the rules will weed out part-time builders who don't keep up with industry standards.

"Before this, there was nothing to stop anybody with a hammer and a truck from deciding to build homes. I've seen everyone from airline pilots to janitors trying to get into the business, thinking there's money to be made."

Certain types of subcontractors, such as electricians, already have to be licensed in Georgia. Many people think the requirement for general contractors is long overdue.

"One argument for the law was that in Georgia, the person who cuts your hair has to be licensed, yet the person who builds your house did not," said Phil Gruber, assistant manager of building inspection services for the city of Gainesville.

Starting next January, the city no longer can issue a building permit if the applicant does not have a contractor's license.

Gruber said he thinks the law will result in overall better quality in home construction.

"The license must be renewed every two years and requires eight hours of continuing education. This will force builders to keep up with the codes," he said.

"The majority of builders we see do comply with the codes. But there's a small percentage that tries to get away with whatever they can."

Gainesville builder Tim Whitmire said unethical or incompetent contractors tarnish the industry's reputation.

"There needs to be a way to protect people. You hear so many horror stories about building houses, and it shouldn't be that way," he said.

"It's time for a law like this. It will make the industry more professional, and better for the consumer."

Yet Whitmire said he has mixed emotions about the law.

"I've been a builder for 28 years, and I got started in an atmosphere of free enterprise (without much government regulation)," he said. "But things are so much more complicated now, and you've really got to know your stuff these days."

Licenses will be issued through the Secretary of State's office in three categories: residential basic, resident/light commercial and general contractor.

To be eligible, an applicant must be at least 21 years old, have liability insurance, verify payment of taxes, complete continuing education classes and pass an exam.

The general contractor category also requires a minimum net worth of $150,000 and a credit line of at least $50,000.

The latter requirement is aimed at preventing scenarios in which a contractor goes bankrupt and leaves a project unfinished. But it also could make it more difficult for new builders to get into the business.

"I do think it may be hard for some small companies to meet the requirements," Whitmire said.

But Van Neese, spokesman for the Home Builders' Association of Gainesville-Hall County, said his organization sees the law as a positive step.

"The standards aren't intended to put people out of business," he said. "If you are in this industry as a professional, you shouldn't have any problem meeting them.

"Personally, I don't want someone building my house who does it just as a hobby."

In fact, the law does make allowances for "do-it-yourselfers." A state license is not required for projects costing less than $2,500.

And property owners can build a house intended for their own use. But if they sell the home, they can't build another one for two years unless they obtain a license.

State officials have not worked out the specifics of the licensing exam or where the test will be conducted.

"We're going to check with the state to see if we'll be able to offer (continuing education) classes and testing locally, as we did with erosion control certification," Gruber said. "It would help the builders if they didn't have to drive outside Hall County to take the test."

But some builders won't have to take the test at all. Those with considerable experience in construction may be exempt from the exam.

However, the deadline to be "grandfathered in" was Sunday, and the state licensing board has been inundated with last-minute applications.

"You wouldn't believe how many builders have been in business for years and never carried liability insurance until now," Whitmire said. "They were scrambling to get coverage so they could apply for the exemption."

Whitmire himself sent in an application, based on his almost three decades of experience. He said it wasn't a simple process.

"I had to provide a lot of documentation, such as signed affidavits from a civil engineer."

The state requires proof that the builder has completed several previous "successful projects."

The law also requires that new homes carry at least a one-year warranty. Contractors who do shoddy work may have their licenses revoked. They can also be fined up to $5,000, in addition to paying restitution to homeowners.

Goode said the law brings accountability to his profession.

"Now there's recourse for consumers," he said. "A builder who doesn't follow the rules can lose his license. And without a license, he can't get any more building permits."

Contact: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , (770) 718-3407

 http://www.gainesvilletimes.com/news/stories/20070103/localnews/147565.shtml

Originally published Wednesday, January 3, 2007

 
< Prev   Next >
Search HOBB.org

Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon


Amazon
Barnes & Noble

 Feature
Rise and Fall of Predatory Lending and Housing

NY Times: Building Flawed American Dreams 
Read CATO Institute: 
HUD Scandals

Listen to NPR:
Reckless Endangerman
by
Gretchen Morgenson : How 'Reckless' Greed Contributed
to Financial Crisis - Fannie Mae

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Texas Regulates Homebuyers
 
Texas Comptroller Condemns TRCC Builder Protection Agency
TRCC is the punishment phase of homeownership in Texas

HOBB Update Messages

Consumer Affairs Builder Complaints

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

OUTSTANDING FOX4 REPORT
TRCC from Bad to Worse
Case of the Crooked House

TRCC AN ARRESTING EXPERIENCE
The Pat and Bob Egert Building & TRCC Experience 

Builders Looking for Federal Handouts

Build it right the first time
An interview with Janet Ahmad

Bad Binding Arbitration Experience?
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or call 1-210-402-6800

Drum Major Institute
for Public Policy

Tort Deform
Report Your Arbitration Experience

Homebuilding Texas Style
And the walls came
tumblin' down

 Texas Homebuilder
Bob Perry Political Contributions

  The Agency Bob Perry Built
 TRCC Connection News
Tort Reform

NPR Interview - Perry's
Political influence movement.
Click to listen 

REWARD
MOST WANTED

ARIZONA REGISTRAR OF CONTRACTORS
Have you seen any of these individuals

 Feature: Mother Jones Magazine
Are you Next?
People Magazine - Jordan Fogal fights back
Because of construction defects Jordan’s Tremont Home is uninhabitable
http://www.tremonthomehorrors.com/
You could be the next victim
Interview with Award Winning Author Jordan Fogal

Special Money Report
Big Money and Shoddy Construction:Texas Home Buyers Left Out in the Cold
Read More
Read Report: Big Money…
Home Builder Money Source of Influence

Letters to the Editor
Write your letters to the Editor

Homeowner Websites

top of page

© 2024 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.