Does *all* contract work require a "commercial license"?

Question

Hello,

I own a commercial property, and am wondering if there is a line in the sand as to when I am required to get a contractor with a commercial real estate license. For instance, if I'm doing anything mission-critical, like getting a new roof, of course I need a commercial contractor.

But what if it's a 'little' job, like installing a fence with a gate around some small area I want to protect? Is there such a line in the sand, or am I basically stuck with having to go commercial (i.e. more expensive for the same-ish quality), no matter how menial the job?

Thanks!

Tamas Z. · Answer

Oooo, the insurance thing makes sense. I'll have a look at it.

Thanks for the replies!

Ronald Rohde · Answer

In my experience, you're bound by your insurance requirements. If it specifies bonded, licensed commercial contractors for XYZ type of job, then yes, you run the risk of not being able to collect if said contractor destroys your building.

In your example, I would probably let it slide if i self managed, I would not however, let a property manager or tenants use anyone who was not insured, bonded, etc.

Jeff Kehl · Answer

@Tamas Z. I'm newish to commercial, only having commercial properties for a few years so take this for what it' worth. But I think there is absolutely no requirement to use a 'commercial contractor'. I mostly use the same guys on my commercial properties as I do on my residential.

Having said that though, I find that the 'commercial contractors' especially in more technical areas like HVAC or electrical have more specialized knowledge and skills that help and are worth the extra money. Have a boiler? Find someone that specializes.

Painting, flooring, fences? Not different at all.