Nebraska Contractor License Search

What You Should Know about Hiring a Contractor in Nebraska

Contractors plying their trade in Nebraska must register with the Department of Labor but pursue licensure at their counties. There are over 8,000 licensed contractors across the state's 93 counties. When completing any project, dealing with a registered or licensed contractor is wise. This comes with the assurance that a qualified professional conversant with relevant local codes and industry standards will complete your work. Also, licensed contractors save you from unexpected liabilities arising from unsatisfactory work, damages, or work-related injuries. Licensed contractors must carry bonds and insurance plans covering such unforeseen liabilities.

Hence, verifying any contractor's license before hiring in Nebraska is a smart move. You should also consider the following issues when hiring any professional in the state:

Who Is a Contractor in Nebraska?

Contractors are businesses and individuals that offer services based on a written or oral agreement. The Department of Labor handles licensing for contractors in Nebraska. Therefore, all contractors and subcontractors in the state must register as contractors with this Department. In Nebraska, contractors often fall into one of two categories:

  • General Contractors: General contractors are involved in the planning and managing of construction and renovation projects for buildings, homes, and properties. They have the expertise to effectively coordinate the activities of various specialty contractors involved in these projects. Acting as the primary liaison between the project owner and the contractors, general contractors serve as the central point of contact, ensuring seamless communication and smooth execution of the project.
  • Specialty Contractors: these contractors have honed their expertise in diverse areas such as painting, masonry, roofing, HVAC (heating, cooling, ventilation, and air conditioning), plumbing, and electrical work. A general contractor typically handpicks specialized contractors with the necessary skills and knowledge to carry out specific tasks or provide specialized services when undertaking a construction project. In cases where a project is relatively small and focused, you can work directly with a single contractor. It's important to note that in Nebraska, electricians are required to obtain a separate license. At the same time, plumbing regulations are enforced at the local or municipal level rather than by the state.

How to Search for a Contractor's License in Nebraska

Using the Uhire professional license search feature, you can access a comprehensive search tool that allows you to check various contractors' profiles. This feature is handy when evaluating potential contractors in Nebraska, as it enables you to verify whether they possess a valid license. Additionally, the Nebraska Department of Labor's Search Contractors Page is another valuable resource for identifying contractors who hold state-issued permits. Both platforms offer essential information and ensure that you make informed decisions when selecting contractors for your projects.

Penalty for Hiring a Contractor Without a License in Nebraska

Nebraska's license laws prescribe severe consequences for contractors without a license, with potential criminal penalties that can significantly impact such individuals. For a first offense, there are fines of up to $500, while subsequent offenses can lead to much steeper penalties of up to $5,000. While it is not technically illegal to hire an unlicensed contractor, opting for this route comes with several disadvantages, including:

  • Contractors cannot obtain the required permit from the concerned building authority without a license. Without the proper approval, renovations and general contracting work could be carried out with financial repercussions and a drop in your home's worth.
  • There is a high likelihood that these contractors lack bonds or insurance. This indicates that you are liable for any mishaps or property losses while working on the project.
  • It raises the likelihood of receiving work that is below par.

How Much Does a Contractor Charge in Nebraska?

The cost of specialty contractors is often influenced by their projects' complexity and personnel requirements. Given the specialized nature of their work, their hourly rates typically range from $200 to $500. This pricing structure considers the unique expertise and skill set these contractors possess and the level of intricacy involved in their assigned tasks. It is essential to consider these factors when budgeting for projects requiring specialty contractors' services.

The following table shows the most well-known specialists in Nebraska along with their standard hourly rates; however, actual costs may differ depending on your location and the standing of the specialist in your area:

Electricians
$58 - $70
Plumbers
$61 - $70
HVACR Technicians
$70 - $120
Carpenters
$40 - $70
Painters
$40 - $75
Roofers
$55 - $90
Flooring Contractors
$40 - $80
Masons
$65 - $115
Landscapers
$50 - $95
Architects
$65 - $240
Interior Designers
$60 - $190
Excavation Contractors
$100 - $230
Concrete Contractors
$50 - $120
Handymen
$50 - $65
Appliance Repair Technicians
$50 - $110
Exterminators
$40 - $105
Cleaning Services
$40 - $120
Movers
$55 - $160

You may require multiple specialized contracors for a residential or commercial project. Hiring a general contractor to manage the entire project makes sense to save time, money, and the hassle of managing numerous subcontractors. Remember that the general contractor's fees are typically based on the overall project cost. However, this sum, which represents 10% to 20% of the project's overall expenses, is often calculated utilizing one of the methods described below:

  • Fixed Price Method: here, the contractor agrees to finish the job in return for a specific payment. This approach performs best for activities with a clear scope and completion date.
  • Cost Plus Fee Method: in this instance, the contractor adds a markup to all services rendered and the actual work finished on the project. This strategy is perfect while working on significant projects with hazy deadlines. It is advisable to insist on a set maximum price to prevent prices from quickly rising.

You will likely spend between $89 and $132 per square foot on building and home improvement projects in Nebraska. The following factors could affect ultimate costs:

  • How much it costs to hire contractors to provide necessary services
  • Position and qualifications of hired contractors
  • The environment where you are residing on the project site, the price, and the availability of the necessary supplies
  • The nature and scope of the project
  • Work, authorization, and additional expenses

Tips for Hiring a Contractor in Nebraska

Considering the amount of money typically involved in designing, remodeling, installing, maintaining, and repairing a home and its fixtures, the contractors you choose must be qualified for the job. The first step is to comprehend the project's scope and determine the types of contractors needed. As a result, before employing any contractors in Nebraska, consider the following:

  • In all cases, save those where there are no state licenses, a state-licensed contractor must be used. You can check the status of your contractor's license online.
  • Never pay for a project in total upfront. For home remodeling projects, never pay more than $1,000 (or 10% of the entire project cost) in advance.
  • Verify that the work is complete to your satisfaction before making the final payment.
  • Insist on a written contract outlining all project requirements and obligations before beginning any work. Make sure you have read and understand the contract before committing.
  • Avoid paying with cash.
  • Keep copies of any project-related paperwork, such as contracts, warranties, and invoices.
  • Verify the contractor's insurance and bonding, as well as that of any applicable subcontractors.
  • Get up to three contractor bids for your projects and compare them.
  • Request and verify each bidder's references.

Is Your Contractor Insured and Bonded as Required by Nebraska Statutes?

A current Workers' Compensation Certificate of Insurance with the Department of Labor named as the certificate holder is required from all contractors with one or more employees. Any contractor whose records show that their insurance has run out will be taken off the list of registered contractors until their insurance company sends an updated certificate. In Nebraska, contractors must also carry liability insurance.

You should ascertain whether your contractors are sufficiently insured and bonded to protect yourself financially and legally in the event of unforeseen events like bodily harm, unexpected property damage, and contractor errors that may arise during your project. Never undervalue the numerous protections that bonds and insurance offer. The project owner and the contractor are shielded by insurance from covering accident- and injury-related out-of-pocket expenses. On the other hand, bonds protect project owners from liability for any harm caused by the contractor's failure to perform the work as agreed.

Before employing a contractor, always ask for documentation of their bonding and insurance coverage. Make sure their general liability insurance covers the scope of your project. You can verify this by requesting a copy of the company's insurance (and bond) certificate and contacting the issuer. For further information about insurance for contractors, contact the Nebraska Department of Insurance at (402) 471-2201.

Top Contractor Scams in Nebraska

Scams involving contractors are not unheard of in Nebraska. About 1.5 in 10 thousand homeowners fall victim to these scams each year. One of the best ways to avoid these dishonest contractors is to be aware of how they work.

Shady contractors frequently deceive Nebraska homeowners using the following techniques:

  • A marketing campaign that goes door to door and offers incentives for the extra work.
  • Free house inspections that end in the "discovery" problems that need to be fixed right away.
  • Reducing the importance of official contracts.
  • Deliveries of contracts with ambiguous language or unfilled spaces.
  • Increasing the cost of the project's requirements.
  • Requesting full or significant advance payments when money is tight, pressuring families to sign up for services, or spending excessive amounts of money on them before doing their research.

Before engaging contractors in the state, take the following precautions to avoid these frauds:

  • Perform extensive background checks on each potential contractor. Obtain references, accurate contracts, read them well before signing, and find out if they are legally insured and bonded. Additionally, you could research their reputation online.
  • Employ only authorized contractors.
  • Do not accept remodeling quotes from unsolicited contractors.
  • Avert using cash as payment.
  • Limit your down payment to $1,000 (or 10% of the total project cost).
  • Only sign contracts you understand entirely.
  • For your project, get pricing quotes from many contractors and compare them.
  • You should request the discharge of any liens held by your main contractor and related subcontractors.

How to Report Fraudulent Nebraska Contractors

Various offices exist in Nebraska through which you can report contractor fraud and take legal action against dishonest contractors, depending on the situation.

Office of the Attorney General of Nebraska.

You should notify the Office of the Attorney General of Nebraska of any unfinished work, excessive fees, or dishonest business activities that cause a financial loss or theft. You can also consider contacting the district attorney's office in your neighborhood.

Small Claims Court

If a contractor violates the terms of the written contract, you may choose to file a small claims lawsuit against them. Notably, the maximum value of a case in a small claims court is $3,900. Before doing this, you must inform the district attorney's office in your area.

Better Business Bureau (BBB)

You could complain to your neighborhood Better Business Bureau office about a dishonest contractor. The BBB urges locals to report fraud, complain about service providers, discuss their interactions with companies, and forewarn others about misleading advertising.

The Police Department

It is strongly advisable that you notify the local police station first if the contractor has physically intimidated you or stolen from you.

Cities in Nebraska