Protecting Your Payments In Illinois
Regardless of whether youre in compliance with licensing , protecting your payments is essential. Cash flow issues arise all the time in construction, and not having that reliable source of money coming in will make it next to impossible to grow your business.
General contractors, subs, and suppliers have strict deadlines they have to follow to protect their payments in Illinois. They need to send preliminary notices on all their projects within 90 daysof first furnishing labor or materials, and they have to file a mechanics lien within four months of the last furnishing.
If youre not protecting your payments while keeping an eye on these deadlines, there might not be any recourse for non-payment licensed or otherwise.
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Chicago General Contractor License
A General Contractor’s responsibilities may include applying for building permits, advising the person they are hired by, securing the property, providing temporary utilities on site, managing personnel on-site, providing site surveying and engineering, disposing or recycling of construction waste, monitoring schedules, and cash flows, and maintaining accurate records.
Search For Your State
As a general contractor, youre responsible for making sure your projects run smoothly and your clients and subcontractors are happy.
To make sure you can focus on providing the best quality work, youll need have all your paperwork in order, including meeting the general contractor license requirements in your state.
While some states require you to obtain a license from the state or local government , others dont require any special licenses for minor repair work, such as painting or home improvement projects that cost less than $1,000. Since each state has such variable specifications, its important to carefully research everything you need to do before you spend money on an application.
You will also need to make sure you have the right general contractor insurance, which is required to get a license in many states. Your clients might also ask you to have coverage before they’ll work with you. Insurance helps to protect you against claims related to property damage and injuries caused by your business. It also helps pay for court costs and legal fees you may incur to defend your business against a claim.
Weve put together a state-by-state list of general contractor licensing requirements to make it easier for you to find what you need.
These are the main topics well cover:
The list is in alphabetical order and includes links for additional resources in each state.
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Job Description: General Contractor
If you are considering a career as a general contractor, it is important to understand the responsibilities that such a job entails. Essentially, general contractors are the head of any given construction project.
General contractors take on many roles throughout the fulfillment of a project, including assessing the original construction site, estimating material and labor costs, formulating and submitting bids to clients, overseeing and participating in on-site construction work, and even hiring subcontractors to perform work in their stead. This is a position that requires the ability to lead and make decisions.
Individuals who are experienced in a variety of construction fields will be more naturally inclined toward the general contractors role, as it may require knowledge about anything from the costs and quantities of very specific materials to how long a project may take to complete. A typical project will require the general contractor to first assess the construction site to determine the costs of labor and materials.
Then, they must use this knowledge to formulate a competitive bid to the client. If the bid is chosen, the contractor becomes responsible for managing the entire project and seeing that it is completed within the budget and timeline laid out in the bid.
To summarize, general contractors are in charge of the following:
- Crew safety
- Anticipating weather conditions and scheduling accordingly
- Enforcing quality and safety standards
Chicago General Contractors License Application And Renewal Forms
The process to apply for or renew a General Contractors License in Chicago is straightforward. However, finding the forms to do it can be a challenge. This article will help Chicago contractors find the necessary forms. In addition, it discusses the steps to apply for or renew a license.
In Chicago, a Contractors license is issued by the City of Chicago Department of Buildings. They recently updated their website making some tasks easier. However, getting a contractors license remains difficult. As of December 2018, the City outsources the task of issuing General Contractor Licenses, Trade Contractor Licenses, and renewals to Continental Testing Services.
The forms to apply for or renew a license can be found linked below.
These forms were updated as of November 2018. The original documents were downloaded from .
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How To Get A Roofing License In Illinois
Roofing licenses in Illinois go through the Illinois Department of Financial and Professional Regulation. This license is a bit easier to navigate. All thats required for a roofing license is that a qualifying individual apply and pass an examination.
This qualifying individual does not have to own the business they must only be employed by it. This person will have to disclose criminal records, child support, and other personal information, however.
There are two types of roofing contractor license: limited and unlimited. Limited license holders are able to take on residential projects consisting of eight units or less. Unlimited license holders can take any roofing project. The fee for both of these is $226.
Learn the rules in nearby states
Helping Contractors Profit And Manage Risk In Chicago
Jeremy has represented a variety of contractors, from curtainwall design-builders and wind farms constructors to general contractors. He understands the unique pressures contractors face.
Contractors have much more to worry about than pouring concrete and erecting steel. Jobsite safety is hugely important. Maintaining the right kind and amounts of insurance coverages is key. Keeping their equipment and workforce busy and profitable is a challenge. Demanding clients and design problems are prevalent.
Many problems contractors face relate to money, the lifeblood of every project. Most project dollars run through contractors. However, they usually build first and get paid later, often much later. Contractors extend credit each month but few view themselves as credit managers. And when their clients fail to pay, they remain liable for trade labor and subcontracts.
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Insurance Requirements For Illinois General Contractors
General contractors in Illinois are required to carry workers compensation insurance if they have at least one full-time or part-time employee.
Depending on where your projects are located and your contract with your client, you might also be required to have general liability insurance before you can start work.
Commercial general liability insurance protects you against expenses related to an accident or injury that could occur at your job site. It provides coverage for injuries that happen to nonemployees as a result of your work, legal defense and judgments, and property damage caused by your business operations or products.
If you have a business-owned vehicle, you will also need commercial auto liability insurance a requirement for all businesses in Illinois. If there is an accident, commercial auto coverage can help you pay for injuries to you or someone in your vehicle, injuries to other people, and property damage.
Do You Have All The Necessary Documents And Information To Complete A Chicago Business License Application
You will need to have a valid drivers license, an approved name for your business, the square footage of your business location, IBT and FEIN. In addition, you will need to have a business information sheet which is available online at the City of Chicago website. This information sheet is used as a pre-application for a business license. It requests information that is equivalent to what you may find on a business license including information such as your business ownership type , information about you as the business owner including your legal name, social security number, date of birth and all contact information.
This information should be provided for all additional owners, managers, vice presidents, shareholders, and secretaries of your business, as well as the president. You should include a detailed description of your business activities, whether you sell goods at your location and whether you have wholesale, retail, or a combination of both and the percentage of each. The name and all contact information of your primary business contact should be included. Information regarding your business location such as the square footage, the physical address and street number, and all phone numbers should be given.
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Quick Guide On How To Complete Chicago Application General License Form
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How To Create An Electronic Signature For The City Of Chicago General Contractor License Renewal Notice Cityofchicago In Gmail
Email is the main method to share documents nowadays, and going paperless has a lot of profits, speed being the main one. You can sign a document and have your partner receive it in one minute.
Your email recipient is one click away. This simple process can be applied to any forms that needs a signature: contracts, tax forms, and all kinds of agreements or declarations.
The great thing about CocoSign is that it helps you esign the City Of Chicago General Contractor License Renewal Notice Cityofchicago in your Gmail, without having any other operating systems involved. You can do that using the CocoSign Chrome extension. There are only five simple key elements you need to follow to sign your form right in your Gmail account:
Convenience was the primary concern behind the efforts made by CocoSign to develop a efficient and flexible app that can allow you to abandon signing document face-to-face.
Once you try the app, you will in one minute become one of the countless satisfied clients who are enjoying the profits of e-signing their documents right from their Gmail account.
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General Contractor Licenses In Chicago And Other Cities
The process of applying for a general contractor license is similar in cities across Illinois. Contact your local county or municipality office to learn about specific requirements in your area.
Chicago is the largest market for general contractors in Illinois, and the second-highest paying city for general contractors in the country, paying more than $95,000 per year, according to employment site Indeed.
Youll need to take several steps in getting your general contractor license in Chicago, including completing an application, purchasing general contractor business insurance, and paying a fee.
Chicago also requires licenses for specific trade workers, including mason contractors, plumbing contractors, wreckers, and electrical contractors.
Youll need to provide documentation to the Chicago Department of Buildings with your application to determine if you are qualified for a license. The steps for the application include:
- Provide a description of the work and services you aim to perform.
- Specify the classification of license you are applying for.
- Clarify your business structure and provide additional company information.
- Identify and verify by affidavit that the applicant or member of your business entity is financially stable.
- Submit your certificate of insurance with the City of Chicago as additionally insured and policy limits ranging from $1 million to $5 million depending on the sizes of your projects.
- Sign and complete the application.
- Pay all licensing fees.
How To Make An Esignature For Your City Of Chicago General Contractor License Renewal Notice Cityofchicago In Google Chrome
The guidelines below will help you create an eSignature for signing il contractor license in Chrome:
Once youâve finished signing your il general contractor license, decide what you wish to do next – download it or share the file with other people. The signNow extension gives you a variety of features for a much better signing experience.
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How Does A Payment Bond Work
Mechanics liens cannot be placed on public projects like schools, streets, and public buildings. To protect subcontractors, design professionals, and material suppliers from nonpayment, general contractors are required under Illinois law to post a payment bond for projects valued at over $50,000.
Payment bonds provide the following protections:
- The claim is made against an insurance company, so the general contractors financial situation is no impediment to collecting payment
- They provide an additional or secondary source of funds that can be used to pay for work and materials provided
- They are not limited to subcontractors who have contracted directly with the general contractor or bonding company
We can assist general contractors in complying with their statutory obligations under the Illinois Public Construction Bond Act.
When it comes to payments, general contracts are protected by local and state statutes that govern payment on public works projects. When you submit a payment request, the contracting entity must approve it within 30 days. Local government entities then have 30 days to pay while state entities must pay within 60 days. Any wrongfully-withheld or late payments face interest penalties at 1% per month.
General contractors are the center-of-the-spoke of all projects, which multiplies their risk. We have the perspective and insight to help contractors mitigate these risks and deliver projects successfully.
To learn more, contact Baker Law today.
Chicago General Contractors Insurance Requirements
Chicago has very specific insurance requirements in order to get a license. The insurance must name the City of Chicago as an additional insured, non-contributory entity and show an A.M. Best credit rating of B+ or higher. Insurance must cover bodily injury and property damage. In addition, the amount of insurance you are required to purchase depends upon your Class. The cost ranges from $1 to $5 million per occurrence as of 2018. See the application itself for the specific insurance requirements per Class. And do not forget to include the insurance with your application.
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Building And Related Codes And Amendments
The Department of Buildings supports the safety and quality of life for the residents and visitors of the City of Chicago through enforcement of the Chicago Building Code. The permitting and inspection process promotes high quality design standards as well as the conservation, rehabilitation and reuse of the City’s existing buildings.