Georgia Contracting Law, Unlicensed Practice & Liens
Georgia law makes an unlicensed contractor's contract unenforceable and sets strict deadlines for filing and enforcing a lien. This chapter covers O.C.G.A. §43-41-17, the owner and specialty exemptions, the qualifying agent, and the mechanics' lien timeline.
Unlicensed contracts are unenforceable (O.C.G.A. §43-41-17)
For contracts entered into on or after July 1, 2008, a person who was required to be licensed but was not cannot enforce the contract in law or equity. In practice this means an unlicensed contractor generally cannot sue the owner to collect. Unlicensed contracting where a license is required is also a misdemeanor. Together these rules make licensure a precondition to being paid and to using the courts.
Owner and specialty exemptions, and the qualifying agent
Georgia exempts an owner who builds or improves a one- or two-family residence on their own property for their own occupancy, so long as it is not built for sale or lease. Limited specialty work under roughly $10,000 (or 25% of the total contract) is treated differently from full general contracting, though candidates should confirm the current figure with the board. A company contracts under the license of a qualifying agent, an individual who is responsible for the firm's contracting; if that agent leaves, a qualified replacement must be designated.
The Georgia mechanics' lien timeline (O.C.G.A. §44-14-361.1)
A Claim of Lien must be filed of record within 90 days after the claimant last furnishes labor, services, or materials to the project. After filing, the claimant must commence an action to enforce the lien within 365 days (one year) of the filing date, and file a Notice of Action in the county records within 30 days of filing suit. Missing any deadline generally extinguishes the lien, leaving only ordinary contract remedies, which an unlicensed contractor may not be able to use.
State-specific details
State exam facts
- State regulator
- Georgia State Licensing Board for Residential and General Contractors (Georgia Secretary of State)
- Passing score
- 70%
- Scored questions
- 50
- Time limit
- 120 minutes
Does Georgia require a state contractor license?
Yes. The State Licensing Board for Residential and General Contractors (under the Georgia Secretary of State) licenses contractors under O.C.G.A. Title 43, Chapter 41 — with Residential-Basic, Residential-Light-Commercial, General Contractor ($150,000 net worth), and a GC Limited Tier ($25,000 net worth, $1,000,000 single-contract cap).
What is on the Georgia contractor exam?
The official Georgia Business and Law exam is 50 questions, 120 minutes, and requires 70% to pass. Candidates also take a trade portion for their classification.
What happens if a Georgia contractor is unlicensed?
Under O.C.G.A. §43-41-17 an unlicensed contractor's contract is unenforceable. Georgia lien law (O.C.G.A. §44-14-361.1) allows a 90-day filing and 365-day enforcement window, and general liability ($300,000/$500,000) plus workers' compensation (3+ employees) are required.
Sources: https://sos.ga.gov/georgia-state-licensing-board-residential-and-general-contractors
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