Do Your Contractors Have The Licenses They Say They Do? Contractor License Verification Can Help You Find The Answers

License Monitoring | May 27, 2022

Your organization can benefit from actively managing your contractors’ trade licenses, but only when it is done the right way. Contractor license verification from PlusOne Solutions can help turn something that may have been a weakness into a solid part of your business’ compliance program.

Verifying and tracking professional licenses is a difficult task for any network manager. Simply keeping up with the number of state and local licensing requirements could become a full-time job. Add in the time and effort that is required to ensure your contractors and vendors hold and maintain the proper licenses, and it should come as no surprise that this task can be challenging for many organizations. 

This blog will give an introductory overview of a contractor license monitoring program, and who you can turn to for help with yours. 

How Does A Contractor License Verification Program Work?

Begin with knowledge of licensing requirements

Before your organization can start work with contractors, you should accurately determine which professional licenses will be required, or if they are applicable, for the work to be performed. Not only do licensed contractors have extensive experience and training needed to maintain their licenses, but many states and jurisdictions also require that contractors be licensed for the kind of work they do. 

Include requirements for licensure in your contracts

When beginning a relationship with a new contractor or vendor, your organization should ensure that the contract clearly states that you will require your contractor to be licensed and in good standing for any state, county, or city licenses for their trades. 

You will also want your contract to state that the contractor is to provide you with proof of licensure and any renewals, suspension, revocation, or terminations. 

Obtain licenses before work begins

In today’s world of 2-day shipping speeds and instant results, it can be easy to get caught up in day-to-day operations and not take the time to collect licenses before your contractor begins their work. Allowing a contractor to start performing services for your customers without first getting their professional licenses in hand could result in the work being completed by an unlicensed individual.

Don’t just trust; verify

An organization that relies on a good faith policy and assumes that a contractor is truthful about the licenses that they hold is leaving themselves exposed to the possibility of working with an unlicensed contractor. It is not uncommon for contractors to use another company’s or individual’s trade license number, so it’s not safe to assume that the number you’ve been given actually belongs to that contractor. 

There are many issuing boards and local government agencies that provide databases where you can verify contractor licenses online. You can check state, and in some cases, county and even city licenses. At PlusOne Solutions, we use modern and advanced technology to verify contractor licenses. 

Check that the license is in good standing 

Professional trade licenses are rarely one and done. These licenses typically need to be renewed, and they can also be suspended or revoked. Partnering with a contractor license verification provider that offers continuous monitoring for expired, revoked, or suspended licenses can provide the peace of mind that your contractors are maintaining the licenses that they held when beginning their contract. 

Why Choose PlusOne Solutions?

We know that contractor licensing is a critical area that can sometimes fall between the cracks when using a contractor network. It’s okay if you can’t rely on in-house staff for contractor license verification. Turning to an outsourced compliance partner who specializes in contractor networks can make the difference when mitigating risk and protecting your company’s name and reputation. 

PlusOne Solutions takes a proactive approach to licensed monitoring. We do more than just report back to you or wait for licenses to expire; we actually attempt to verify online license renewals starting 14 days before the expiration date and continue to monitor 14 days past expiration until renewed. Our industry knowledge and experience working with contractor networks give us an edge when it comes to license monitoring and contractor compliance. Contact us today to learn more about how we can help your organization. 

Contents are provided for information purposes only and should not be construed as legal advice. Users are reminded to seek legal counsel with respect to their obligations and use of PlusOne Solutions services.

About PlusOne Solutions

PlusOne Solutions has been an industry leader in the risk management field by specializing in compliance programs that meet the complex challenges of geographically dispersed contractors, vendors, and employee networks. PlusOne Solutions protects companies from possible financial, legal, and reputational risks associated with contractor and vendor relationships while creating safer work environments. To learn more, visit https://www.PlusOneSolutions.net.