What license and insurance documentation do I need to verify when hiring a tradesman?
I am new to rehabbing and haven't done any yet, but before I do my first single family home I would like to understand licenses and insurance better. Assume I want to rely on the hired help to manage as much of the construction as possible because I have a full time job and will only be checking on the project a few times per week. I will not have the time to manage multiple contractors.
When would I want to hire a licensed General Contractor versus a tradesman/handyman? A tradesman I talked with (whom is a trusted friend of mine I would love to hire) said he can do most any kind of work but when a licensed GC is needed, the tradesman brings on the GC as needed. But what licensing and insurance should I require from the tradesman? Is he legitimate?
And how does "permits" come into play here? I've heard that cities and utilities will generally work with only licensed contractors. Does that mean a plumber needs to have a plumber license, electrician electrician license, and so on? But that a GC can pull a permit for all of the above? I'm just not grasping the concept.
Another friend of mine said you need to pull a permit any time there is major work. For example, load bearing wall changes, major plumbing (outside the home), major electrical (from panel to service drop), and something basement additions. So as long as you aren't doing any work requiring a permit, you don't need a GC license. But I should still require a plumber's license for plumbing work, electrician license for electrician work, and so on so forth, right?
Can anyone help me understand?