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’s 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 the 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 itself exposed to the possibility of working with an unlicensed contractor. It is not uncommon for contractors to use another company’s or an 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.
Ready to Strengthen Your Compliance Program?
Contact us today to discover how Service Power's Contractor License Verification can simplify monitoring and protect your business.
