09/10/2024
Here is some good to read info!
Handyman Licenses in Colorado – Everything You Need To Know
by KIMBERLY SOUKUP
If you’d like to offer professional handyman services in Colorado, understanding the laws is a must.
This article covers much of what you need to know to confidently offer home repairs for profit.
Colorado’s laws are more complicated than those of other states because they can vary by city.
However, I’ve poured over pages of difficult-to-understand legal jargon, spoken to state representatives, and compiled the most critical information. And here’s what I’ve found.
Do you need a license to offer handyman services in Colorado?
Well, it depends. Colorado doesn’t offer a license at the state level or require examinations or training programs to provide handyman services. All contractor-related licensing happens at the municipal (city) level.
Unlike many states that determine licensing based on project size, Colorado has no such guideline. In other words, the cost of the job does not impact the need for a license. So, whether a project costs $500 or $50,000, a license may not be needed.
However, there are other limitations.
In Denver, for example, the question is: “Do I need a permit for this job?” If the answer is yes, you’ll need a license. Whether a permit is required determines whether you need a license to perform the work.
Limitations for unlicensed handymen in Colorado
From my research and conversations with licensing specialists in Denver’s Contractor Licensing department, I learned that the most common restrictions relate to structural work, demolition, wiring, and piping.
For example, alterations to a building’s foundation, framing, and roof require special certification (Construction Certificates). Any disconnecting/reconnecting of pipes, wires, or gas lines requires specialty licensing in plumbing, electrical, and/or HVAC.
To provide more context, I’ve researched and detailed the laws for Denver, the state’s most populous city.
Denver Handyman Laws
Denver allows unlicensed handymen to engage in “finish” (non-structural) work without Construction Certification. This includes traditional handyman work like painting, countertops, tiling, and flooring, as well as plumbing and electrical work of a cosmetic nature, like replacing old sinks, toilets, light fixtures, and ceiling fans.
Again, the key litmus test revolves around rewiring, replumbing, structure, and permitting: if the job requires rewiring or redirecting pipes rather than simply connecting new fixtures to existing pipes/wires, then you must have the appropriate specialty license.
And since rewiring or reconfiguring pipes requires permits, it’s off-limits to those without the proper licensing since handymen without construction certification are unable to pull permits.
Finally, familiarize yourself with structural vs. non-structural projects. Removing a window or door and inserting a new one in its space can be done without a permit/license, while altering the frame before adding a window or door is “structural” and, therefore, prohibited for the unlicensed handyman.
Fortunately, these exemptions are laid out clearly in Denver’s Building Code documents in Section 130.3, pages 47-50.
Advertising Restrictions
Like most states, unlicensed handymen need to be careful not to “oversell” themselves in their ads, on their websites, or on proposals and invoices. To avoid a run-in with the law, avoid terms like “licensed contractor,” “general contractor,” “residential contractor,” and the like—these titles are reserved for handymen who have obtained their contractor licensing.
That said, if you opt to get your Contractor License, include your license number on your business communications—it can only improve your standing in the marketplace.
Insurance Requirements
Colorado doesn’t require its handymen, licensed or not, to be insured IF they work independently. If handymen take on employees, however, they must carry Worker’s Compensation insurance.
And while handymen working independently aren’t obligated to carry liability insurance, it’s a wise choice. If you inadvertently injure a customer while working on their property, you’ll protect yourself from potential legal fees.
Plus, insurance is low cost if you get it here.
Penalties for contracting illegally
Handymen in Colorado working without the proper licensing are subject to penalties. For example, engaging in structural or in-depth plumbing, electrical, or HVAC work without the required licensing puts you at real risk.
Colorado could charge you with a Class 2 misdemeanor for the first offense and a Class 6 felony for the second offense. These charges may result in fines and jail time.
Be smart – work within the parameters set forth for handymen. The penalties just aren’t worth it.
Conclusion
Colorado is a great place to start a handyman business.
Many Colorado residents rely on handymen to assist with home repair and remodeling jobs. Handymen in the state are fortunate that no license is required to start making money. And, if you want to tackle bigger jobs, getting a Contractor’s License is relatively easy.
Unlike other states, Colorado does not cap the price of jobs a licensed contractor can tackle, which means your handyman earnings are much less limited than in other states.
