What is the difference between a limited and unlimited contractor license?

A limited contractor license is designed to restrict the total annual project value that a contractor can undertake, differentiating it from an unlimited license, which does not impose such constraints. This limitation means that contractors with a limited license can only bid on and complete projects that fall within a specified financial cap. This approach ensures that contractors are operating within their capabilities, particularly in terms of experience and financial management, while also providing a regulated environment for smaller contractors.

An unlimited license, on the other hand, allows contractors to pursue projects of any size without such restrictions, thereby accommodating those who have the resources and experience to handle larger contracts. This distinction is critical for ensuring that contractors are appropriately qualified for the financial scope of the projects they take on.

While other answers may touch on aspects related to licensing, they do not encapsulate this essential difference regarding project value limits, which is a fundamental component that distinguishes between the two types of licenses.