Van Sant had commissioned LFR to build a house on newly acquired land. Prior to the completion of the project, disputes arose between the parties, and Van Sant terminated the contract with LFR and hired replacement contractors to complete the work. As mentioned above, the State of Georgia requires a contractor`s license to enforce rights under a construction contract. This is expressly stated in O.C.G.A. ยง43-41-17(b): In this case, the Contractor has been registered as an LLC with only one member. This single member was licensed and registered as a qualified agent for a separate entity, but not for the LLC that entered into a contract with the owner of the property. The LLC attempted to assign its single member licence to the LLC by refuting the landowner`s request for a summary decision. The Court of Appeal disagreed and ruled that the contractor`s interpretation would nullify the explicit requirements of the Permits Act that a qualified agent must apply for and hold a licence directly on behalf of a business. The State of Georgia takes contractor licenses very seriously. In fact, so much so that a contractor without a permit cannot even enforce the terms of their contract for the work done. Period. However, in many states, including Georgia, there may be a qualified agent for a construction company that covers the work performed.
It is not always as clear as it seems. A recent Georgia Court of Appeals case dismissed a contractor`s claims against an owner because the qualified agent was not registered for his business. Contractors often work with multiple affiliates to track different types of work. The Decision of the Court of Georgia reminds these contractors to verify their compliance with the applicable conditions of licence. If your business unfairly relies, for example, on an affiliate.B license or the license of someone who is not registered as a qualified agent in a state such as Georgia, it can be disastrous to make otherwise meritorious claims. In addition, some licensing laws may provide for criminal penalties for unlicensed operations, which is another reason to confirm compliance. Also keep in mind that there may be delays in processing new license applications during the ongoing pandemic, and you should consider this potential when planning your work. LFR submitted that since Reynaud is a licensed qualified agent, his status as a licensee must be attributed to LFR as a whole. Since Reynaud was the only member of LFR, LFR should be considered a licensee. Therefore, LFR would be able to perform the contract.
In this case, this is the essence of how qualified agents work in Georgia. LFR erred in relying on the fact that the only member of the LLC was a licensed and qualified agent. A certificate of insurance with general liability insurance of $500,000 per event is required. Proof of workers` compensation insurance is also required for contractors with employees. If my contractor has not paid for the submarines, they can file a mechanical lien against me. I think my contractor owes it to subcontractors, as they have told me that they experience difficulties if an applicant applies on behalf of and for the benefit of a commercial organization (any partnership, corporation, limited liability company, commercial trust, joint venture or other legal entity other than a natural person operating as a sole proprietorship), the application must be made by and through a “single qualified agent” for that commercial organization. be submitted. But this is clearly not enough. The eligible agent must be registered as an agent for that particular construction company. A qualified agent may even cover licensing requirements for more than one business, but another license must be issued based on that company`s finances and insurance.
If you don`t, a construction company can no longer have recourse if it ends up not getting paid. The court disagreed. The law expressly states that to be considered duly authorized, a company must have at least one qualified agent who is expressly authorized on behalf of that company or entity. Because Reynaud was not a qualified agent specifically on behalf of LFR, LFR was an unlicensed contractor. `For reasons of public policy, any contract concluded on or after 1. July 2008 for the carrying out of work for which a housing contractor or a general contractor`s licence is required under this chapter and is not otherwise excluded under this chapter and which exists between an owner and a contractor who does not have a valid and up-to-date licence required for such work under this chapter, legally unenforceable or equitable by the unlicensed contractor. LFR brought an action against Van Sant for breach of contract and unjust enrichment. In response, Van Sant filed a motion for summary judgment to dismiss claims based on the contractor`s failure to be properly authorized. The Court of First Instance granted the application and dismissed the appeals.
LFR appealed. When applying for a contractor`s license from the Georgia State Licensing Board, a person can apply for a single license or apply as a qualified representative on behalf of a company. The role of a qualified agent is similar to that of a construction manager and is responsible for obtaining building permits and the like. However, the eligible agent must be licensed for that particular business, as a contractor learned the hard way. Under Georgian law, an unlicensed general contractor cannot enforce the terms of a contract in law or equity. To be properly authorized, Georgian law allows a business organization to rely on the license of a “qualified agent” who has a valid license for contractors or general contractors. The Qualified Agent must explicitly request and be approved for a license on behalf of the Company in order for the Company to rely on that license. Limited-level contractors cannot undertake projects valued at $500,000 or more. Light commercial contractors can provide the same services as a land contractor and additionally work on light commercial buildings of less than 4 storeys and less than 25,000 square feet (or less than 50,000 square feet in the case of some pre-design buildings). Reynaud was a licensed and qualified residential agent registered with the State Department as a qualified agent for Peachtree Gardens Development, Inc. He was not registered as an agent of LFR. Moreover, the building permit acquired by Reynaud was in his capacity as agent for Peachtree and not for LFR.
These are LFR Investments et al. . .