The $2,500 trigger
O.C.G.A. 43-41-2 requires a residential contractor license when the total value of the work or the contractor's compensation, whichever is higher, exceeds $2,500.
- Take the higher of the two figures, never the lower one. Value of work $2,400 and compensation $2,600: the higher figure is $2,600, and $2,600 > $2,500, so a license is required.
- Do not average the two. ($2,400 + $2,600) ÷ 2 = $2,500 is not the test the statute sets.
- The word is "exceeds". Work at or below $2,500 does not trigger the requirement, so not every paid job needs a license.
Figures that are not the threshold
The trap is grabbing another dollar figure from the same chapter.
- $10,000 is the floor of the incidental-work exemption for trade licensees in 43-41-17, not the licensing threshold.
- $25,000 is the residential net worth requirement, not the point at which a license is needed.
- $1,000 does not appear in the statute at all.
Residential-Basic scope
Under O.C.G.A. 43-41-2, Residential-Basic covers detached one-family and two-family residences and one-family townhouses not over 3 stories.
- A detached one-family residence of 3 stories fits Basic.
- A 4-story townhouse is over the 3-story limit.
- Multifamily buildings and pre-engineered steel buildings are Residential-Light Commercial items, not Basic work.
Residential-Light Commercial scope
The same section lets Residential-Light Commercial cover all residential-basic work plus:
- Multifamily and multiuse light commercial buildings under 4 stories and under 25,000 sq ft of aggregate interior floor space, built of the listed construction types (wood or light-gauge metal frame, brick veneer, prefabricated or manufactured construction).
- Pre-engineered steel buildings up to 50,000 sq ft.
The common error is applying the 25,000 sq ft limit to steel buildings; they have their own 50,000 sq ft cap. The under-4-stories figure is the story limit for the other light commercial buildings, and steel buildings still carry an area cap. A 100,000 sq ft figure is not in the definition.
Keep the story wording straight: Basic is "not over 3 stories", Light Commercial is "under 4 stories".