Becoming a Registered Contractor
Who is required?
- All construction contractors with employees must register.
- A construction contractor is defined, simply, as anyone who adds to or takes away from a structure, project, development, or improvement attached to real estate (39-9-102, MCA).
Why is it required?
- Construction Contractor Registration (CR) helps level the playing field in the construction industry by assuring that all construction contractors are in compliance with the Montana Workers’ Compensation (WC) Act.
How to obtain a CR
- Read, complete, and submit an application form with a non-refundable $70 fee to the Department of Labor and Industry.
Construction contractors can be fined up to $500 per violation for:
- Performing work without a CR if required to obtain one;
- Performing work with a suspended CR; or
- Transferring their CR to another person.
When Hiring a Construction Contractor
Make sure you:
- Have a written contract that states what is to be performed, materials used, start and completion dates, payment based on completed project, and liability for failure to complete the project.
- Obtain references and check them out to ensure they are experts in their field of work.
- Check periodically to confirm that they have valid CR and WC insurance on their employees.
- Ask for proof of their CR and verify it is in good standing by searchingon our website or calling our office at (406) 444-7734.
Advantages
- Protection from Employee Liability – A person who hires a registered contractor is not liable as an employer for workers compensation coverage under 39-71-405, for unemployment insurance coverage, or for wages and fringe benefits for the registered contractor or its employees, or any subsequent subcontractors and their employees. Protections may not apply if the registration is found to be invalid.
- Credibility – Those who complete the paperwork and pay attention to the law may also be more likely to care about the quality of their work.
- Opportunity – Getting registered may make it easier to obtain work. Many will not hire unregistered construction contractors.