What does a limited contractor license restrict?

A limited contractor license specifically restricts the annual project value to $500,000. This means that contractors holding a limited license are permitted to undertake projects that do not exceed this financial threshold in a given year. Such licensing is designed to ensure that smaller-scale contractors can engage in construction activities without the need for a full license, which typically covers larger project scopes and values.

This restriction helps protect both the contractor and the public by ensuring that contractors operate within their financial capacity and expertise. It allows clients to make informed decisions regarding their hiring choices, knowing that a limited contractor has demonstrated the ability to manage projects within a specific financial limit.