Electrical Contractor?

[electricmanscott]

You all do realize there is no 'real' nationwide answer to the question of what is an electrical contractor? :grin:

Exactly. Most of what has been said in the way of replies is just opinion, and some of it just nonsense.

That is why I have nothing much to add to this.

 

[emahler]

You all do realize there is no 'real' nationwide answer to the question of what is an electrical contractor? :grin:

don't hate....participate

 

[emahler]

Exactly. Most of what has been said in the way of replies is just opinion, and some of it just nonsense.

That is why I have nothing much to add to this.

yes and no...it's not interesting to see how other people think? i find it quite fascinating to find out the thought process behind the words and actions....there are a lot of guys in our industry who claim to be "electrical contractors", yet their actions say otherwise...

 

[ike5547]

i'd add that a contractor works for a profit, while a self employed electrician works for wages....

con?trac?tor (kŏn'trăk'tər, kən-trăk'-)

1. One that agrees to furnish materials or perform services at a specified price, especially for construction work.

 

[emahler]

con?trac?tor (kŏn'trăk'tər, kən-trăk'-)

1. One that agrees to furnish materials or perform services at a specified price, especially for construction work.

LOL.......

 

[iwire]

don't hate....participate

Am I wrong?

You all do realize there is no 'real' nationwide answer to the question of what is an electrical contractor?

 

[1793]

Electrician's Licenses
To operate an electrical business in Kentucky you need a license. To apply, contact:

Department of Housing, Buildings, & Construction
Division of Fire Protection
Electrical Licensing
101 Sea Hero Drive, Ste 100
Frankfort, Kentucky 40601
(502) 573-0364
http://ohbc.ky.gov/fp/els/
Forms are available online at http://ohbc.ky.gov/fp/els/elsformspubs.htm.
Electrical Contractor

In order to contract with the public to perform electrical work. Only licensed electrical contractors may pull electrical permits. To qualify for the license you need:

• Two years verifiable experience as an electrical contractor in Kentucky.
• Proof of $500,000 General liability insurance
• Proof of Worker's Compensation insurance
• Completed application form
• $200 application fee
• Passport sized photo
• Pass the required International Code Council exam

Master Electrician
Each electrical contractor must employ at least one master electrician. Master electricians are responsible for all electrical work performed under their supervision. To qualify for the license you need:

• Six years verifiable experience as an electrician in Kentucky
• Completed application form
• $100 application fee
• Passport sized photo
• Pass the required International Code Council exam

 

[BryanMD]

You all do realize there is no 'real' nationwide answer to the question of what is an electrical contractor? :grin:

The specifics will vary some but the basics don't vary much.

A contractor has the business licensing, liability insurance, bonding etc required by their state/locality (and complies with all payroll and WC laws etc. if they have employees) to be a business whether they are a NYSE listed corporation or one person operating as a DBA.

An **electrical** contractor has all the above plus whatever trade license is required in their state/locality.

None of the above requires them to operate efficiently or profitably.
None of the above requires them to plan or provide for their retirement.
None of the above requires them to do not be hacks.
None of the above requires them to train their employees well or at all.
None of the above requires them to ...
None of the above requires them to ...

 

[brian john]

To operate an electrical business in Kentucky you need a license.

In order to contract with the public to perform electrical work. Only licensed electrical contractors may pull electrical permits. To qualify for the license you need:

Two years verifiable experience as an electrical contractor in Kentucky.

You cannot operate a business without a license in order to get a license you need two years expierence operating a business.

HMMMMMMMMM Kentucky logic or Catch 22.

 

[iwire]

The specifics will vary some but the basics don't vary much...

I will be very surprised if the basics are not greatly different across this country.

Some areas do not require insurance

Some areas do not require licensing

Some areas do not require bonding

 

[augie47]

the State of TN has two basic types of electrical license.
A "Limited License Electrican" is required to pass a 50 point test (except those who were gradfathered in) and is not allowed to use the word "contractor" in his business dealings.
An electrical contractor takes a much more difficult and broader based test (NEC, business law, tax laws, etc).
The LLE is limited to $25,000 JOB.
Limits on the CE vary, but most are allowed 100,000 to 1,000,000.

as inspectors, we must show we can walk and chew gum at the same time
(actually certfication & testing is required)

 

[220/221]

Here is my take.

I made a really good living for many years as a self employed electrician (and whatever other work that would come up).

As a contractor, I don't think my work is any "better" than it was before. In some cases it will be worse because it is being done by employees and I cannot check everything they do.

I think I made better money before..... but now, running a "real" business, I have built equity.

 

[mdshunk]

I think I made better money before..... but now, running a "real" business, I have built equity.

There's a lot of wisdom in that statement. At some point in a man's working life, he must change from making a living to developing a profitable exit strategy. For a contractor, that exit strategy will normally involve developing something that has a sale value. The one or two man show cannot sell his business for anything more than the truck and tools are worth.

 

[hardworkingstiff]

There's a lot of wisdom in that statement. At some point in a man's working life, he must change from making a living to developing a profitable exit strategy. For a contractor, that exit strategy will normally involve developing something that has a sale value. The one or two man show cannot sell his business for anything more than the truck and tools are worth.

Yea, that's where I'm at now.

 

[Rewire]

There's a lot of wisdom in that statement. At some point in a man's working life, he must change from making a living to developing a profitable exit strategy. For a contractor, that exit strategy will normally involve developing something that has a sale value. The one or two man show cannot sell his business for anything more than the truck and tools are worth.

Not always true.Two things of great value the small shop can have is their good name and client list.

 

[mdshunk]

Not always true.Two things of great value the small shop can have is their good name and client list.

They might have value to you, but they have *ZERO* value when valuating a business's worth. You can take that to the bank. If you've sold some service contracts to some of these people, they do have a bit of a residual value, however. A name is worth ZERO, and a customer list is worth even less than zero.

 

[satcom]

Not always true.Two things of great value the small shop can have is their good name and client list.

Good will or your good name has little or no value once you leave or close a small, non incorporated business, the client list is only of value if you have ongoing contracts of value, if you think you have something to sell, have a business broker look at your business, you may be supprised to learn how little if anything it is worth without, hard assets, or future contract with real value.

 

[Tiger Electrical]

There's a lot of wisdom in that statement. At some point in a man's working life, he must change from making a living to developing a profitable exit strategy. For a contractor, that exit strategy will normally involve developing something that has a sale value. The one or two man show cannot sell his business for anything more than the truck and tools are worth.

IMO the only real difference in value is repeatable business. Although real estate has value, you don't need to be an EC to invest in real estate.

Dave

 

[Rewire]

They might have value to you, but they have *ZERO* value when valuating a business's worth. You can take that to the bank. If you've sold some service contracts to some of these people, they do have a bit of a residual value, however. A name is worth ZERO, and a customer list is worth even less than zero.

An Ec I worked for years ago turned 70 and wanted to "sell' his business,He had been in this town for 40 years and the name of his business was very well known as he did 75% of the work.He was small ,son-in-law one other electrician and me.The other electrician bought his business not for the junk trucks and worn out tools but for the name Scott Electric(not the real name) he even kept the phone #.So believe what you want that a name has *ZERO* value but I have seen in the real world that that just is not true.
P.S . 25 years later Scott Electric is still in operation.

 

[emahler]

it had value because the customers already knew the employee who bought the company.....he could have opened up Bakula Electric when the old man closed up and simply called all the customers with nearly the same results...