A contractor fails to renew their license and continues working. The contractor completes a $25,000 project while unlicensed. What is the potential fine?
Correct Answer
C) $5,000
Georgia can impose fines up to $5,000 for contracting without a valid license, particularly for higher value projects.
Why This Is the Correct Answer
Georgia law authorizes fines up to $5,000 per violation for contracting without a valid license. This is the statutory maximum penalty and applies regardless of the specific project value, though the $25,000 project value in this question signals a significant violation.
Why the Other Options Are Wrong
Option A: $500
$500 is far below the statutory maximum. Georgia takes unlicensed contracting seriously, and $500 is not a recognized fine level for this offense.
Option B: $2,500
$2,500 is half the maximum penalty. While some might guess a mid-range fine, Georgia statute allows up to $5,000 for unlicensed contracting violations.
Option D: $1,000
$1,000 is too low. This amount does not reflect the Georgia statutory maximum for contracting without a valid license.
Memory Technique
Think '$5,000 is the ceiling.' Georgia's penalty for working unlicensed tops out at $5,000. Remember: five grand is the fine, whether the job is big or small.
More Georgia Questions
A contractor discovers that a building permit was issued in error and the project violates setback requirements. According to Georgia regulations, what is the contractor's primary obligation?
A contractor employs workers in both construction and office roles. The construction rate is 11.2 per $100 and office rate is 0.8 per $100. Construction payroll is $85,000 and office payroll is $45,000. What is the total workers compensation premium?
Which situation would require a Georgia contractor to obtain workers' compensation insurance?
A contractor receives a stop work order from the local building official. The contractor continues working despite the order. What is the typical penalty range?
A contractor's license expires on June 30th. They submit a renewal application on July 15th. What additional requirement must they meet?
A Georgia contractor completes work valued at $15,000 on March 1st. The property owner fails to pay. What is the deadline for filing a materialman's lien?
A contractor fails to pay workers' compensation premiums and coverage lapses. An employee is injured the next day. What is the contractor's liability?
A contractor discovers that the local building official is interpreting a code provision differently than expected. What is the proper appeal process in Georgia?
A contractor's annual payroll is $450,000. If the workers compensation rate is 8.5 per $100 of payroll, what is the annual premium?
What is the threshold amount above which a contractor must be licensed in Georgia?
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