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Why a Contractor’s License is So Important

Updated: Jun 6, 2023

One of the reasons Minnesota Construction Law Services is so passionate about helping professionals in the construction industry is that, prior to becoming attorneys, we made our living in the construction industry. During this time, we encountered many of the same struggles our clients face, which has helped to inform our unique approach to law. As construction professionals first and lawyers second, we understand the struggles that contractors face — because we have trudged in your boots. While each of our practice areas are designed to bring the most value to our clients, helping contractors maintain their licenses might be one of the most valuable services we offer — as it protects our clients, their livelihood, and their customers. Outside of the obvious legal reasons, there are many factors that contribute to the importance of a contractor’s license. Below, the team at MNCLS discusses why a contractor’s license is so vital to Minnesota contractors. Benefits of a Contractor’s License Contractor’s licenses are as much about protecting your livelihood as they are capturing new business, but the benefits don’t end there. Protect Yourself and Your Clients The most cut-and-dry benefit of a contractor’s license in Minnesota is the protections it provides to both you and your clients — while the most obvious benefit of a contractor’s license is the avoidance of both administrative and civil penalties, seeing as contracting without a proper license is illegal in Minnesota. Beyond that, licenses protect everyone involved in a contracting project and grant contractors access to legal rights — like lien rights in the event of unpaid work. Unlicensed contractors can still bring a lawsuit to enforce a contract, however this could open up a whole new can of worms and stir up unwanted trouble with the Department of Labor. Win Business MNCLS has grown accustomed to looking at legal matters from a number of different perspectives, and a contractor’s license is a topic worth exploring from the client or customer’s point-of-view. Whether or not a contractor’s license improves the actual quality of work, it reassures homeowners that their builder or contractor has met specific standards — and will always be a selling point. Minnesota homeowners may not realize that a residential contractor is required by law to be licensed, but a contractor’s ability to advertise their licensure when pursuing new business will give them a leg up. Better the Industry In the eyes of MNCLS, one of the most important benefits of a contractor’s license is that it betters the construction industry as a whole. By abiding by guidelines, contractors set a standard that ensures exceptional craftsmanship and safe working conditions. As with any industry, experience can bring bad habits with it. In Minnesota, however, contractors are required to renew their license every two years through continuing education credits: giving Minnesota contractors the opportunity to brush up on the fundamentals and stay up-to-date on building practices. Proper building standards upheld by licensure stand to benefit everyone touched by the construction industry — from contractors to homeowners — for generations to come. Protect Your Lifeline with MNCLS The team at Minnesota Construction Law Services aims to support the construction industry in any way we can, including by helping residential contractors meet all standards of this highly-regulated industry. Whether by offering continuing education courses or representing contractors in Department of Labor and Industry (DOLI) investigations, MNCLS makes sure both you and your customers are protected. Understanding the benefits of contractor’s licenses is the easy part — navigating the bureaucracy is the real challenge. To learn more about the importance of licensure, or to safeguard your business and livelihood, contact the team at MNCLS by completing our online contact form.

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