Before you bid a job or do work for the first time in a new city, county, or state, it’s important to understand licensing requirements, whether you must be licensed as a low-voltage contractor, have a specialty license, or just have a business permit.
One way to stay on top of this is to conduct regular license audits to catalog the licenses your firm has on a state-by-state level.
Many counties and municipalities also require low-voltage contractors to follow certain ordinances or permit processes, or have specific certifications. These requirements are often a catch 22: You don’t want to go through the hassle and unnecessary expense of getting permits until you know your firm won the job, but if you don’t have what you need ahead of time, that can cost you money, too.
Why It’s Important
NSCA has seen several members be excused from qualified bidder lists because they’re not licensed on bid day – even though they’ve got the job. You may also end up paying a fine if you’re not properly licensed. And if certain license requirements are based on certifications, the associated tests often can’t be taken care of in a week or two; they must be scheduled months in advance. If you land a job, but lack the proper certifications, you can hold up the entire project while everyone waits for you to earn the certification. At the very least, this situation could hurt your company’s reputation if you don’t have all your ducks in a row beforehand.
To make sure you’re equipped with the necessary licenses and certifications, create a checklist when you bid the job (even if it’s still several months out). It should outline everything that must be done for the particular project.
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At NSCA, we often receive questions from members about regulatory and legislative issues. We often hear the same question or comment from several companies, so we know these challenges are faced by almost every integrator across the country.
Not understanding these business basics can cost you big money if you’re not in compliance. Build your company on a firm foundation by following these contracting basics and understanding these four business issues.
This is the first blog in a four-part blog series that will outline the common business challenges our members face – and how these challenges can be dealt with.
Check back soon for part two of the series, which will talk about prevailing wage jobs. -Chuck Wilson, NSCA Executive Director