NKBA GA Specialty contractor listing request approved:
Residential Kitchen and Bath Designers / Installers.
Recognizing that many kitchen and bath designers are not Registered Interior Designers and are not specifically exempt from the contractor licensing law, the NKBA Georgia chapter through the Law Office of Kevin M. Veler requested for a limited service specialty contractor listing for Residential Kitchen and Bath Designers / Installers. After some work with the Board and addressing a number of concerns, the listing was approved as of August 6, 2008 (click for an excerpt from the minutes from the Board).
Residential kitchen and bath design and installers are NOT licensed nor does Georgia law require that they be licensed. These professionals are limited to the scope of work approved in the specialty listing as well as work permitted under the $10,000 or 25% Rule. In general, designers and installers are permitted to continue their work to design kitchens and baths, to provide quality review and consultation with owners, licensed contractors and other specialty contractors who would actually perform the construction and pull permits.
It is important to note that, except (1) as permitted under the $10,000 or 25% Rule or (2) in connection with management and oversight of installation of cabinetry, countertopes, appliances and other kitchen and bath equipment, residential kitchen and bath designers and installers generally MAY NOT be "at risk." That means that the specialty party may not be contractually responsible to an owner for the performance or cost of actual construction. Subcontracting work is considered to be "at risk". To comply with the specialty rule, unless within the scope of the specialty or under the $10,000 or 25% Rule, the actual construction work must be performed by a licensed contractor, a specialty contractor or otherwise exempt person, under a direct contract between the contractor and owner (or by virtue of a subcontract through a contractor in direct privity of contract with the owner).
For many designers/installers this requires some significant changes in the business operations. What was permitted prior to July 1, 2008 may no longer be In many circumstances, the designer/installer will be in direct contract with the owner for work permitted under the scope of their specialty and the contractor performing the work for the owner will also be in direct contract with the owner. Designers/installers will generally NOT be managing a contractor under a subcontract. If an owner has an issue with the construction, that will be an issue between the contractor and owner. An owner may not withhold money due the designer for provlems with construction if the contractor and owner are in direct contract.
Designers/installers who have appropriate qualifying experience and want to manage and control all aspects of the construction, such as in an "at-risk" design/build situation, must apply for and become a a licensed contractor.
Kitchen/Bath Designers and Installers who also have a Registered Interior Designer license should be very careful for each project to distinquish whether they are relying on the specialty listing or the exemption for Registered Interior Designers. For more information, see registered interior designers.