Identifying Independent Contractors

Identifying independent contractors (ICs) in the Shovels API can be accomplished in several ways. The most reliable method is through the biz_type field, though it has limited coverage across our dataset. As a practical heuristic, if a business name appears to be a person's name (e.g., "John Smith" rather than "Smith Construction"), it often indicates an independent contractor. Other signals that may suggest an independent contractor include: having only a single contact person across all permits, a low permit volume compared to larger firms, and absence of multiple employee records. Independent contractors typically represent a significant portion of the contracting ecosystem, especially in specialized trades like electrical work or plumbing. Understanding which contractors are independent professionals versus larger companies allows for more tailored marketing approaches and helps in accurate market segmentation for products or services targeting the construction industry.