Limited Tier: a 1,000,000-dollar cap
Rule 553-4-.05(8) limits a General Contractor Limited Tier licensee to contracts of no more than 1,000,000 dollars.
- "No more than" includes the limit. A contract of exactly 1,000,000 dollars is allowed.
- Anything above it is not, even by a small amount: 1,000,500 dollars is over the cap, and so is 1,200,000 dollars.
- The cap is not limited to public work. The rule does not say that.
- The cap is not lower than 1,000,000 dollars.
Net worth for each tier
- Limited Tier: the licensee must affirm a minimum net worth of 25,000 dollars, Rule 553-4-.05(3)(d).
- Full (unlimited) General Contractor: the qualifying agent must affirm a net worth of 150,000 dollars, Rule 553-4-.02(3)(d). The full licence has no contract-value cap.
The trap is swapping the two net worth figures. The smaller licence carries the smaller figure: 25,000 dollars goes with the 1,000,000-dollar cap, and 150,000 dollars goes with the uncapped licence.
Insurance for both tiers
Both the full General Contractor and the Limited Tier require general liability insurance of at least 500,000 dollars. That figure is an insurance minimum. It is not a contract cap and not a net worth.
Figures that do not belong
- A "50,000-dollar line of credit" for a full General Contractor appears only on prep sites and is not in these rules. Do not pick it for either tier.
- 1,000,000 dollars is the Limited Tier contract cap, not a net worth requirement.
- 150,000 dollars is the full General Contractor net worth, not a Limited Tier figure and not a contract cap.
The comparison in one line
Full General Contractor: 150,000 dollars net worth, no contract cap (Rule 553-4-.02(3)(d)). Limited Tier: 25,000 dollars net worth, capped at 1,000,000 dollars per contract (Rules 553-4-.05(3)(d) and 553-4-.05(8)). Both: general liability insurance of at least 500,000 dollars. The trap is putting the 1,000,000-dollar cap on both licences; the cap applies only to the Limited Tier.