What is an general contractor license, and how do you get one?
Most states license general contractors, and the remainder leave it to cities and counties — so the first question is always which authority licenses the work you intend to do. Where a state licence exists, it typically requires a qualifying individual with documented construction experience, a trade examination and a business-and-law examination, a surety bond, general liability and workers' compensation insurance, and in several states a financial statement or minimum net worth. Licence classes are often limited by project value or scope. Construction managers, the category general contractors are counted in, earn a $114,990 median.
- Establish whether your state, your city, or both license general contracting.
- Meet the experience requirement for the licence class you want.
- Pass the trade examination — or the NASCLA exam where it is accepted — plus business and law.
- File the surety bond and insurance certificates, and any financial statement required.
- Apply, then renew and keep the bond, insurance and qualifier in place.
How to get a general contractor license
- 1
Find out who licenses the work
Establish whether your state licenses general contractors, whether cities and counties do, or whether both apply. This determines everything that follows, and contractors working across a metropolitan area in a locally licensed state frequently need several registrations rather than one licence.
- 2
Meet the experience requirement
Most states require a qualifying individual with several years of documented construction experience at journey level or above, verified through employers, tax records or project documentation. Check how the board weights field versus supervisory experience, and which licence class your experience actually supports.
- 3
Pass the examinations
Sit the trade examination — or the NASCLA Accredited Examination where your state accepts it, which is worth doing if you plan to license in several states — and the state business-and-law examination covering contracts, lien law, employment and tax obligations, insurance and financial management. Both are usually open book against published references.
- 4
Arrange the bond, insurance and financials
Obtain a surety bond in the amount the authority sets, general liability insurance at its minimum, and workers' compensation cover if you employ staff, then file the certificates. Prepare any financial statement or net worth evidence required — in several states this determines which licence class and project-value cap you receive.
- 5
Apply, then keep everything in force
Submit the application with experience documentation, examination results, bond and insurance certificates and the fee. After issue, renew on the authority's cycle, complete any continuing education, and notify the board promptly if the qualifying individual leaves — most states allow only a short window to replace them before suspending the licence.
General Contractor license requirements
Requirements are set by each licensing authority, but the components are consistent across states that license. You generally need:
Qualifying individual and experience
A designated individual with documented construction experience — commonly several years of journey-level or supervisory work — who takes responsibility for the licensed work. Boards define what experience qualifies and how it must be verified.
Examinations
A trade examination on construction practice and codes, and a business-and-law examination covering contracts, lien law, employment and tax obligations, estimating and financial management. Several states accept the NASCLA Accredited Examination for the trade component.
Bond and insurance
A surety bond filed with the licensing authority, general liability coverage at the minimum set by the state, and workers' compensation insurance where you employ staff. All must be maintained continuously.
Financial standing
Several states require a financial statement, a minimum net worth or working capital, and some tie the licence class or permitted project value to it. This is the requirement that most often determines which class you can actually obtain.
How much a general contractor license costs
Fees are modest; bonding, insurance and the financial requirements are the real barrier. The lines to budget for:
Bonding and insurance recur annually and scale with revenue and payroll, so the application fee is a poor guide to what licensing actually costs. Amounts and financial thresholds are set by each authority; confirm with the board, a surety and an insurance broker.
The general contractor license exam
Most licensing states require two examinations. The trade examination covers construction practice, the adopted building codes, plan reading, structural and site work and safety, and is typically open book against the code and reference list the state publishes. The business-and-law examination covers contract formation, licensing regulations, lien and payment law, employment and tax obligations, insurance and bonding, estimating and financial management — and it is the one experienced builders most often underestimate. The NASCLA Accredited Examination for Commercial General Building Contractors is accepted by a number of states in place of their own trade examination, which is why contractors expanding across state lines often sit it deliberately. Business-and-law examinations remain state-specific.
How long it takes to get licensed
The experience requirement is the gate; once met, licensing takes months, with bond, insurance and financial review typically slower than the examinations.
General Contractor license types: the full ladder
Contractor licensing is organised by class and scope rather than by a journeyman ladder, and understanding the classes is what determines how quickly you can be licensed.
Handyman / exempt work
Most states set a value threshold below which work may be performed without a contractor licence. The threshold is low and is measured per project, and exceeding it without a licence is the most common enforcement issue.
Residential contractor licence
A class limited to residential construction, often with lighter experience and financial requirements than commercial classes. The usual starting point for new contractors.
Value-limited or specialty licence
Several states issue classes capped by project value or restricted to defined scopes of work, with the cap tied to the financial statement filed.
Unlimited general contractor licence
The full class: commercial and residential construction with no project-value cap, requiring the strongest experience, examination and financial evidence.
Qualifying individual
The person whose experience and examinations the licence rests on. Most states restrict how many companies one individual may qualify and require prompt notification if they leave.
Local contractor registration
City and county registrations required in addition to, or instead of, a state licence, typically carrying their own bond, insurance and permit-privilege requirements.
NASCLA accredited licence route
Not a licence itself but a recognised examination accepted by a number of states in place of their own trade examination, materially reducing the burden of licensing across several states.
Residential class vs Unlimited class: general contractor license
General Contractor license reciprocity between states
Contractor licensing reciprocates poorly, and any promise of a national contractor licence should be treated with suspicion — none exists. Some states have limited agreements waiving the trade examination for contractors licensed in a named neighbouring state, and the NASCLA Accredited Examination for Commercial General Building Contractors is accepted by a number of states in place of their own trade examination, which is the nearest thing to portability available. Even then, the business-and-law examination, the bond, the insurance filings and any financial requirement are state-specific and must be completed again. Where licensing is local, each city is a separate application.
General Contractorsalary & job outlook
Construction managers, the category general contractors are counted in, earn a median of about $114,990 per year ($55.28/hour), though owner earnings depend on the business rather than a wage and vary far more widely than any median suggests. Employment is projected to grow 8.7%, with roughly 46,800 openings a year. See the full general contractor salary guide for pay by state, city and experience level.
General Contractor license requirements by state
The essential question by state is who issues the licence and what classes exist — several states license by project value, and a few do not license general contractors at state level at all.
Where no state authority is named, that state does not license general contractors at state level and licensing is handled by cities and counties, which means multiple local licences rather than one. Bond amounts, insurance minimums, financial thresholds and licence classes are all set by the authority and change. Confirm with the state board and every local jurisdiction you intend to work in before bidding.
Browse all state guides
General Contractor license FAQs
NASCLA, National Association of State Contractors Licensing Agencies · U.S. Bureau of Labor Statistics, OEWS May 2025 (11-9021) · BLS Occupational Outlook Handbook (Construction Managers) · U.S. Small Business Administration, business licences and permits. Requirements and fees are set per state and change, confirm with your state board before applying.
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