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The Difference Between Membership, Certification, Registration and being Licensed

By
Home Builder with Building Sciences LLC

As a means of expanding my market coverage, I frequently give presentations at real estate offices to realtors on several topics, including Home Energy Efficiency.  Questions inevitably come to me on contractors, and what to look for.

Here in NJ many professionals require some type of government censure. To drive a car, you need a license. To sell real estate, you need a license. To practice law or medicine you need a license. But to put on a roof, or an addition to your home one only needs to be registered, not licensed or certified.

So what are the differences? Simple, yet not always that simple.

License: Almost always granted by a government, typically the state. In order to obtain a license, in almost all cases a test of competency is required. Remember taking the driving test? Your Home Inspection or Realtor test at one of those testing centers where they make you strip? You had to prove some level of competency - though I must say that in the case of the Home Inspector exam, it was more a test of double negatives and the English language then an actual Home Inspection exam - anyway, somehow I managed.

Registration: Just as it sounds. In the case of contractors, all you need to do is fill out a form and send in $90 to the State of NJ and in three weeks you receive a registration certificate with a registration number on it. This number you will see on contractor vans occasionally labeled as "Lic # XXX". In NJ, only electricians and plumbers are actually licensed and all other contractors are registered.  They do not take any tests, and are not required to attend any schooling, apprentice program, or have any level of proven education. The registration requirement was enacted by the Home Improvement Contractor Registration act of 2004 and became effective in 2006. See State of NJ website here.  

Most contractors I know are sound tradesmen, and they know what they are doing.  I point this out this clarification as useful information to know - a baseline - not a ceiling. To see a list of NJ Registered Contractors, click here. Always work only with those registered with the state as a bare minimum.

Certification: Typically offered through institutes and organizations. Not part of the government and often some light testing of competency is required, and almost always some class-time is required. In NJ, Realtors and Home Inspectors must be licensed, not just certified.  Additional certifications are useful though and highly recommended.

Membership: In most cases membership of a professional organization is open to those licensed or approved in some manner by their state. Membership sometimes requires experience and competency like ASHI and NACHI for Home Inspectors. In all cases membership should not be construed as competency, but should give further indications of business practices.

Finally, while a license or registration is a bare minimum, experience, references, certifications and memberships put altogether give you a better picture of the person's ability to do your required project/task. Always require all of the above categories of information.