Legal Question in Construction Law in Colorado

Do we need to be licensed?

We operate an online service where consumers come to us to find contractors. We do sell leads to contracotrs. We charge a % fee of the total job, Sub-Contractor go to job, submits bid to us, we submit bid to homeowner with our fee added on.

Question:

Do we need to be licensed?

Or, can we just be a middle marketing person charging the contractor a finders fee or marketing fee? We are getting working for contractors nationwide, this is also a concern because of the state by state licenseing requirement issue. What do you suggest or how do you suggest we handle this?

Thanks for your time and consideration on this questions.

--name removed--


Asked on 11/02/06, 5:46 pm

1 Answer from Attorneys
Robert Murillo Pivotal Legal Ltd.

Re: Do we need to be licensed?

Afternoon,

Congratulations on your venture. You need to have a business attorney review the service agreements you have with the contractors in addition to the terms provided to the homeowner. It really depends on how this is structured as to whether there are licensing issues and disclosure concerns.

This structure will also determine what issues you would have in other states. Without reviewing your terms of service with the contractors and with the homeowners there is no way to provide any useful idea of the issues and options.

Contact a business attorney and good luck.

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Answered on 11/03/06, 5:20 pm


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