Becoming a licensed general contractor in North Dakota requires meeting eligibility requirements, submitting the proper applications, and obtaining the necessary insurance. This guide will walk you through the steps to obtain a new general contractor’s license, renew an existing license, establish reciprocity with other states, understand bond requirements, and meet insurance needs in North Dakota.
Introduction to Licensed General Contractors in North Dakota
In North Dakota, all contractors require a state license issued by the Secretary of State to work on any construction, repair, alteration, dismantling or demolition project valued above $4,000. This includes subcontractors.
A contractor is defined as any person or company involved in building, repairing, altering, dismantling or demolishing:
- Bridges
- Highways
- Roads
- Streets
- Buildings
- Airports
- Dams
- Pipelines
- Any other structure, project, development or property improvement
This includes the construction, alteration or repair of property to be sold or rented.
There are 4 classes of general contractor licenses in North Dakota:
- Class A: For projects over $500,000
- Class B: For projects up to $500,000
- Class C: For projects up to $300,000
- Class D: For projects up to $100,000
You must apply for the appropriate class based on the scope and value of work you plan to undertake.
Below are the steps to obtain a new general contractor’s license, renew an existing license, establish reciprocity, understand bond requirements and meet insurance needs.
Obtaining a New General Contractor License in North Dakota
To obtain a new general contractor’s license in North Dakota, you must meet the eligibility requirements and complete the license application process.
Eligibility Requirements
To be eligible for a general contractor’s license in North Dakota, you must:
- Register your business name with the Secretary of State if a sole proprietorship or partnership
- Register your business entity with the Secretary of State if an LLC, corporation, etc.
- Have the required experience and qualifications for the class of license sought
- Obtain general liability insurance
- Be in good standing with North Dakota Workforce Safety & Insurance (WSI)
License Application Process
To apply for a new general contractor’s license, you must submit the following to the Secretary of State’s office:
- Contractor License Application: Submit in the exact registered business name and signed under oath regarding your experience and qualifications
- Liability Insurance: Submit a certificate of insurance in the registered business name showing general liability coverage
- WSI Letter: Obtain letter from WSI stating you are in good standing
- License Fee: Pay the fee below for your license class:
License Class | Fee |
---|---|
Class A | $450 |
Class B | $300 |
Class C | $225 |
Class D | $100 |
You may pay fees via check, Visa, MasterCard, Discover or American Express.
Allow adequate processing time, as your eligibility must be verified with multiple agencies.
Renewing a General Contractor License in North Dakota
General contractor licenses in North Dakota must be renewed annually by March 1. You must meet renewal requirements and pay a fee to renew your license.
Renewal Requirements
To renew your general contractor’s license, you must submit:
- Contractor License Renewal Form: Includes a listing of all projects over $25,000 completed in the past year and a certification that all taxes have been paid
- Liability Insurance: Submit a current certificate of insurance
- Renewal Fee: Pay the renewal fee below for your license class:
License Class | Fee |
---|---|
Class A | $90 |
Class B | $60 |
Class C | $45 |
Class D | $30 |
If renewing after March 1, you must also pay a late penalty fee:
License Class | Penalty Fee | Total Due After March 1 |
---|---|---|
Class A | $50 | $140 |
Class B | $50 | $110 |
Class C | $50 | $95 |
Class D | $50 | $80 |
You may pay fees via check, Visa, MasterCard, Discover or American Express.
There are no continuing education requirements for renewing a general contractor’s license in North Dakota.
Reciprocity for General Contractor Licenses
North Dakota does not offer reciprocity for general contractor licenses from other states. You must meet North Dakota’s eligibility requirements and go through the full application process even if licensed in another state.
However, North Dakota does offer reciprocity for certain specialty contractor licenses:
- Electrical: Reciprocity offered for electrical licenses from MN, SD, AK, CO, ID, IA, ME, MT, NE, NH, UT, WY
- Plumbing: Reciprocity offered for plumbing licenses from SD, MN, MT
To establish reciprocity, submit a completed application, copy of your current license, and pay a $50 application fee.
Contractor License Bond Requirements
North Dakota does not require general contractors or specialty contractors to obtain license bonds.
However, project owners may require performance and payment bonds to provide financial protection. These bonds are not filed with the state.
Insurance Requirements for General Contractors
As part of the licensing process, general contractors in North Dakota must obtain general liability insurance and provide proof to the Secretary of State.
The insurance certificate must:
- Be in the exact registered business name
- Show the required general liability coverage
- List the ND Secretary of State as the certificate holder
Workers’ compensation is also required. Contractors must be in good standing with North Dakota Workforce Safety & Insurance (WSI) to obtain and renew a license.
Required insurance coverage amounts will depend on the scope of work performed. Reputable insurance agents can advise on appropriate coverage types and limits.
It’s important general contractors regularly review policies to ensure adequate protection. Coverage needs may change over time as the business grows.
Conclusion
Becoming a licensed general contractor in North Dakota involves meeting eligibility requirements, submitting license applications, establishing reciprocity if desired, understanding bond rules, and obtaining the necessary insurance coverage.
Key steps include registering your business, documenting experience levels, submitting application forms and fees to the Secretary of State, maintaining liability insurance, renewing your license annually, and staying current on insurance needs for your business’ work.
Following the proper licensing and insurance procedures helps demonstrate credibility, trustworthiness and professionalism to potential clients in North Dakota.