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How to Ensure Your Chicago Contracting Business is Legal

Chicago requires contractors to get licenses from the City of Chicago Department of Buildings. This applies to general contractors and specialists in plumbing, electrical, HVAC, etc. All contractors must follow local rules and have business insurance before starting work.

Licensing Authorities in Chicago, IL

The primary authority overseeing contractor licensing in Chicago is the Chicago Department of Buildings. Here’s the contact information for applications, renewals, and more:

Web: Chicago Department of Buildings

Alternate Phone Number: 512-463-6599 (For calls outside Texas)

Alternate Phone Number: 512-463-6599 (For calls outside Texas)

Phone: (312) 744-3449

Alternate Phone Number: 512-463-6599 (For calls outside Texas)

Alternate Phone Number: 512-463-6599 (For calls outside Texas)

Address: City of Chicago Department of Buildings
City Hall, 121 N LaSalle St, Room 900. Chicago, IL 60602

For more information, visit: Chicago Department of Buildings

In Philadelphia PA, contractors need to meet certain rules to get a license for legal work. These rules change based on the job type, like roofing, plumbing, electrical, HVAC, and general contracting. Keep in mind that all contractors must show a tax clearance certificate and their business registration (if they’re working under a business name). Here’s a breakdown for each group:

General Contractor License in Chicago, IL

To work as a general contractor in Chicago, you will need to get a general contractor’s license from the City of Chicago Department of Buildings. This license allows contractors to build, alter and repair buildings in the city.

License Classifications

The City of Chicago issues different types of general contractor licenses. The type depends on the size and type of projects you do:

Class Project Size and Scope
A No limit on project size and scope
B Projects up to $10,000,000
C Projects up to $5,000,000
D Projects up to $2,000,000
E Projects up to $500,000
F Projects up to $100,000

What you need to get a General Contractor License:

Application Submission

Make sure you submit your general contractor license application through the Chicago Permit and Licensing Portal.

Proof of Insurance

General contractors need to prove they have a general liability insurance policy that covers at least $1 million.

Surety Bond

You should get a surety bond based on how big your project is. This bond makes sure you follow city rules and covers any money problems that could come up.

License Fees

The class of license decides how much you’ll pay. A Class A license that covers projects of any size costs more than a Class F license that covers projects up to $100,000.

Experience

You have to show that you’ve worked on building projects that match the kind of license you want to get.

For more information and to apply, visit the City of Chicago General Contractor Licensing Page.

This ensures contractors follow local building codes and laws while doing business in the city.

Home Repair Contractor License in Chicago, IL

Contractors doing home repair work in Chicago need to get a Home Repair Contractor License from the City of Chicago Department of Buildings. You need this license to repair, remodel, and house upgrades.

Types of Work Included:

  • Remodeling, fixing up and improving homes
  • Fixing or installing new parts like roofs, windows, and floors
  • Installing systems like plumbing or HVAC in people’s homes

Electrical Contractor License in Chicago, IL

Contractors doing home repair work in Chicago need to get a Home Repair Contractor License from the City of Chicago Department of Buildings. You need this license to repair, remodel, and house upgrades.

What you need to get an Electrical Contractor License:

Requirement Details
License Electrical Contractor License (City of Chicago)
Application Apply via the Chicago Permit and Licensing Portal with required documents
Insurance $1M liability; workers’ comp if there are employees
Supervising Electrician Must employ a licensed supervisory electrician
Costs Exam: $150. First License: $150. Renewal: $150/year
Compliance Follow Chicago Plumbing Code; renew license annually

Plumbing Contractor License in Chicago, IL

To do plumbing work in Chicago, plumbing contractors must get a License from the City of Chicago Department of Buildings.

Requirements:

Licensed Plumber

Contractors must hire a plumber with a valid Illinois Plumbing License.

Insurance

$500,000 general liability insurance and workers’ compensation (if needed).

Application

Submit your application through the Chicago Permit and Licensing Portal with all required documents, including proof of insurance and plumber licensing.

For more information, visit the Plumbing Contractor License Page.

Roofing Contractor License in Illinois

In Illinois, if you want to do roofing work, you need a Roofing Contractor License. The Illinois Department of Financial and Professional Regulation (IDFPR) issues this license. You can’t work in homes, businesses, or factories without it.

Types of Licenses:

  • Limited License: for residential work.
  • Unlimited License: for both residential and commercial work.
  • Application: for both residential and commercial work.
  • Surety Bond: $10,000 surety bond.
  • Fees: Vary by license type, with initial and renewal fees due every 2 years.
  • Continuing Education: This may be required if you have an unlimited license.
  • Insurance: $500,000 general liability per incident and $1 million total. Workers’ compensation if you have employees.

For more information on Illinois roofing contractor licensing and resources, visit the CRCA Illinois Roofing Licensing Page.

This license ensures roofing contractors in Illinois meet state standards for safety, quality, and professionalism in all roofing work.

Insurance and Bonding Requirements for Contractors in Chicago

Contractors must meet specific insurance and bonding requirements to work in Chicago:

Type Coverage Purpose Purpose/Notes
General Liability $1M per incident $1K to $4K/year Covers injuries, property damage, legal defense. Varies by contractor size, work type
Workers’ Comp Medical bills, lost wages $500 to $3.5K/year Protects employees if injured or ill. Based on payroll and job type
Surety Bond $10K to $50K bond 1-3% of bond ($100-$300 for $10K) Ensures compliance with city rules. Required for some licenses

Frequently Asked Questions (FAQ)

Any contractor performing work such as construction, plumbing, electrical, or roofing in Chicago must obtain a valid Chicago contractor license from the City of Chicago Department of Buildings to operate legally.

Chicago offers a range of licenses based on the type of work, including General Contractor License, Electrical Contractor License, Plumbing Contractor License, and Roofing Contractor License. Each license also has classifications depending on the size and scope of the project.

Contractors can apply online via the Chicago Permit and Licensing Portal, submitting required documents such as proof of insurance, relevant certifications, and work experience. This streamlined process is key to securing your Chicago contractor license quickly.

All contractors must carry a minimum of $1 million in general liability insurance. Contractors with employees must also provide workers’ compensation insurance to comply with Chicago’s contractor insurance regulations.

The cost of obtaining a contractor license in Chicago depends on the type of license and project classification, typically ranging from $150 to $500 for initial applications and annual renewals.

Yes, many contractors, especially those with a roofing license or certain general contractor classifications, need to secure a surety bond, typically starting at $10,000, to ensure they meet compliance requirements.

Avatar for John Brown
Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.