Legislative Information for Pool and Spa Professionals
Do pool and spa professionals need to be licensed under the state act for Residential and General Contractor Licensing?
It depends but my general theory is that
IF you can qualify for the license, whether by examination exemption or by taking the test, then get a license. If you can qualify for a general contractor's license, then this would generally be the highest and best license without limitation because general contractors under the state act can perform any type of construction authorized. In the long run you will have significant competitive advantages. However, if you cannot qualify for a license then all is not lost, but you do have to handle your business with a great deal more care when licensing goes into effect. For further information on qualifying for a contractor license, please review
Licensing Information.
Remember however....the test is NOT a test about pools and spas. It is a test to be a residential or general contractor. You will be tested on a number of your knowledge of information about construction in those areas....but at the end of the day... you will be licensed to be a residential or general contractor and not be limited to a single specialty. For information about what is tested, see
FAQ.
I called the Secretary of State's office and they said I don't need a license, so why are you saying otherwise?
I have received a number of reports that the Board staff has indicated to many who have contacted them that Pool and Spa Professionals do NOT need to be licensed. Your acceptance of this information from the Board staff without a more critical analysis of your business can be FATAL to the future health of your business! Notwithstanding the fact that the Secretary of State's office does not provide legal advice, if you merely state that you are a pool contractor, they will often state that a pool contractor is a specialty contractor and thus exempt from licensing. They will explain to you the nuances and issues relating to what may or may not be permitted under the specialty contractor exception. The answer given was partially correct and misleading.
In fact the Board's initial stated position was that: "
the Board will consider applicants who are in this field case by case. To eleborate on this, if one merely installs swimming pools then he or she would fall within the definition of a 'specialty contractor;' but if one builds swimming pools in addition to building pool houses or makes additions to homes for the purpose of installing hot tubs, for example, then he or she will need to consider the appropriate licensure." The general problem was that the position was not broad enough to make clear that the Board would consider the building of a bathroom or other structure outside of the
specialty contractor exception and under the
$10,000 or 25% rule. Now if you build or remodeled a house and happened to include a pool, no problem. Apply for a license and your projects would be considered. A pool contractor who submitted a pool (even with a bathhouse) as a project, however, would be told that the project did not qualify for licensure.
Based on my work on behalf of the Georgia chapter of the APSP, I have been informed however that the Board has reconsidered this position and will now consider projects with structures to qualify a pool and spa professional (which falls under the Outdoor Environment Limited Service Specialty Contractor policy) to apply for a license as a residential or general contractor. The type of project will determine the type of license.
What does this mean? If all you do is dig a hole, put a liner in and fill the hole with water, then you can probably live with the
specialty contractor exemption. BUT let's face reality. Fortunately under the Board's December 2007 policy you can do much more than that without having to rely on the $10,000 or 25% exception. If a pool and spa professional can perform all of their work within the confines of the policy and the specialty trade exception (including the $10,000 or 25% rule), generally a license will not be required. But what if your project will require, for example, a gazebo, a deck above grade, or a bathhouse, then if you exceed the $10,000 or 25% rule, you will need a license. This means, if you do not have a license, your business model must be limited so that you do NOT exceed the $10,000 or 25% rule. See the
$10,000 or 25% rule for a complete explanation.
I called and they still said I do not qualify. Please note I understand that staff at the Secretary of State’s office may still be discouraging pool contractors who call and say that they install pools and spas. If you desire the license, do not NOT let this discourage you. You should submit their application, explain in a cover letter with the application that you may be exceeding the categories in the Outdoor Environmental (pool) category and explain the nature of the projects submitted (why they are covered structures). Further, your cover letter should state that “these projects should be able to qualify under the definitions of OCGA 43-41-2" and if possible, demonstrate that the projects would exceed the requirements of the $10,000 or 25% rule. If the application specialist initially sends back a denial or similar rejection letter, which may make reference to things like the “projects submitted are for the installation of pools only and the Board considers the installation of pools as a specialty and specialty contactors do not require a license”, the applicant should ask for an appeal in a timely manner. Be sure to review Denial or Deficiency. I would strongly recommend that the applicant obtain legal counsel experienced with licensing and obviously, I would be glad to represent any applicant.
I applied for Examination Exemption and they denied my application because I was a pool contractor. I recommended to many pool contractors in 2007 that they apply for the license and make every effort to qualify. If you did apply of exam exemption and you were denied, an appeal of that denial or other reconsideration may certainly be appropriate given the change of Board position. Contact your legal advisor or me in the event you need assistance in pursuing an appeal or reconsideration.
Caveat: There may be other considerations which have not been discussed that impact whether the cost of holding a contractor's license is a prudent business decision. These other considerations may include the impact on your insurance costs.
If you have questions regarding licensing and the impact on your business, you should contact your legal advisor for licensing or contracting. Of course, should you need a legal representative for licensing or contracts, feel free to contact me.
This page was last modified on Saturday, February 07, 2009 06:23:33 PM