Licensure: it’s complicated and filled with caveats in almost every industry. However, this is especially true in commercial construction. Because of how many people see a project from start to finish, countless licences must be held and certifications obtained. It’s impossible to list them all here.
To the outsider, knowing about these licenses might seem boring; diving into the legalities might feel a bit like a middle school civics class at first! However, it’s crucial for everyone who is even thinking of hiring construction management services to know at least a little about licensure requirements to be a wise consumer. After all, a company that cuts corners in registration is likely to do the same on the job.
That’s why Miller Architects and Builders, a Saint Cloud provider of construction management services, has compiled a brief explanation below of some of the licence requirements each and every provider of construction services must hold.
Registration or Licensure: What does a Commercial Contractor Need?
Minnesota law requires that all commercial contractor businesses register as such with the Minnesota Department of Labor and Industry (DLI). This is to prevent employee misclassification, which can lead to tax and insurance problems. For example, if a commercial construction worker is deemed an independent contractor, as per the DLI’s 9 Factor Test, they will pay a higher amount in social security tax, as they are deemed “self employed” and pay both the employee and employer’s share of that tax.
Sound complicated? It is! Basically registration ensures that construction companies follow all laws when it comes to worker compensation.
But what about official state licensure? Not all commercial construction companies need it; residential construction companies that work directly with homeowners, on the other hand, do. However, if the commercial construction company is performing certain trades, such as plumbing or electrical work, a licence through the DLI is required.
Looking for a Qualified Construction Company? You’ve Found One!
At Miller, we’ve valued honesty, integrity, and grit since our founding in 1874. We hold ourselves accountable for the work we do; that work speaks to our decades of training and experience. If you’re ready to start on the building of your dreams, give us a call at 320-251-4109.