Understanding the contractor licensing process in North Dakota is essential for ensuring legal operation and business success. A contractor license bond is crucial for complying with state regulations, as it assures adherence to local laws before licensing. This guide offers comprehensive details on obtaining the necessary licenses, including insurance and bonding requirements, with specific considerations for each trade, whether you’re a general contractor, electrician, plumber, or roofer.

Contact Information for Licensing Authorities

Contact Information:

Web: North Dakota Secretary of State (General Contractors)

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

Phone: (701) 328-2900

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

Address:
Main Office: 600 E Boulevard Ave, Dept 108, Bismarck, ND 58505

For more information, visit: North Dakota Secretary of State (General Contractors)

Overview of the Licensing Process in North Dakota

In North Dakota, anyone engaging in Construction Activities—building, repairing, altering, or demolishing structures—must obtain a North Dakota contractor’s license if the project exceeds $4,000. This applies to general contractors, subcontractors, and specialized contractors like electricians, plumbers, and roofers.

Lead-Based Paint Contractors: Must obtain a special license for working on pre-1978 buildings, including completing a certified training course.
Home Inspector Services Contractor: Must be certified and licensed, with required training and an exam that covers residential safety and code compliance.

Steps to Become a Licensed Contractor in North Dakota

Step 1: Determine Business Registration Requirements

Before applying for a contractor license, you must determine whether your business needs to be registered with the North Dakota Secretary of State. The requirements vary based on your business structure:

Sole Proprietors: You may need to register a trade name.
General Partnerships: This might require registration of a fictitious partnership name.
Corporations, LLCs, etc.: Must be registered with the Secretary of State.

Step 2: Submit Contractor License Application

To apply for a contractor’s license, submit your application through the FirstStop Portal. The name on the application must match your registered business name. You’ll need to provide:

Certificate of Liability Insurance: This must be in the name you’re applying for the license. The North Dakota Secretary of State must be listed as the certificate holder.
Workforce Safety & Insurance (WSI) Verification: If you have employees in North Dakota, a certificate of payment from WSI is required. If not, you must provide a letter of good standing from WSI.

License Fees:

Class A: Over $500,000 per job – $450
Class B: Up to $500,000 per job – $300
Class C: Up to $300,000 per job – $225
Class D: Up to $100,000 per job – $100

Step 3: Apply for Other Required Licenses or Permits

Electrical License: Issued by the ND State Electrical Board.
Plumbing License: Issued by the ND State Plumbing Board.
HVAC License: North Dakota HVAC contractors must meet specific requirements based on experience and project scope. A Journeyman Level requires four years of experience or two years with HVAC education. A State Contractor’s License is required for projects over $4,000, with licenses classified into Class A (over $500,000), Class B (up to $500,000), Class C (up to $300,000), and Class D (up to $100,000).
Roofing License: Certain jurisdictions in North Dakota may require roofers to obtain a specialized license or registration. It’s essential to check with local authorities to ensure compliance with any specific roofing regulations.
Transient Merchant License: Issued by the North Dakota Attorney General, this license is required for certain professionals such as electricians and plumbers in addition to a contractor’s license. Ensure you meet all the criteria and follow the application process as outlined by the Attorney General’s office.

Renewing Your Contractor License

General contractor licenses in North Dakota must be renewed annually by March 1. The renewal process includes:

Project Listing: A list of all projects exceeding $25,000 completed in the previous year.
Certification of Payments: Confirmation that all payroll taxes, WSI premiums, and unemployment insurance premiums have been paid.
Certificate of Liability Insurance: Verifying continued coverage.

Renewal Fees:

Class A: $90
Class B: $60
Class C: $45
Class D: $30

Failure to renew by the deadline will result in a late filing fee.

Insurance and Bonding Requirements

In North Dakota, contractors must meet specific insurance and bonding requirements to operate legally and protect their businesses, employees, and clients. Employers must secure workers’ compensation insurance through North Dakota Workforce Safety & Insurance to comply with licensing and operational mandates. Here’s a more detailed breakdown:

General Liability Insurance

Required for all licensed contractors, providing coverage against claims of property damage, bodily injury, and personal injury. Coverage limits typically range from $500,000 to $1 million per occurrence. The North Dakota Secretary of State must be listed as the certificate holder.

Workers’ Compensation Insurance

Mandatory for contractors with employees in North Dakota, covering medical expenses and lost wages due to work-related injuries. Contractors must provide a certificate of compliance from Workforce Safety & Insurance (WSI). If you have no employees but work in the state, a letter of good standing from WSI may be required.

Surety Bonds

Required as a financial guarantee for fulfilling contractual obligations. The necessity and amount of the bond depend on the project size, type, and contractor license class.

Here is a concise table summarizing the insurance requirements and costs for North Dakota contractors:

Insurance Type	Coverage	Typical Coverage Limits	Estimated Annual/Cost
General Liability Insurance	Protects against property damage, bodily injury, and personal injury claims.	$500,000 – $1 million per occurrence	$700 – $2,5000
Workers’ Compensation Insurance	Covers medical expenses and lost wages for injured employees.	Varies based on payroll and risk level	$2,500 – $7,000
Surety Bonds	Financial guarantee for fulfilling contractual obligations.	Varies by project size and scope	1% – 5% of bond ($100 – $5,000)

Additional Insurance Considerations

Commercial Auto Insurance

If your business uses vehicles for work-related purposes, you must carry commercial auto insurance. This policy covers liability and physical damage to vehicles used in your contracting business. Contractors often work on real or personal property, including construction, repair, and alterations to buildings and structures for sale or rental.

Professional Liability Insurance

Also known as errors and omissions insurance, this coverage is important for contractors who provide design or consulting services. It protects against claims of negligence or mistakes in your professional services.

Secure the necessary insurance coverage to ensure your business complies with North Dakota’s contractor licensing requirements. Visit Contractors Liability for expert assistance in choosing the right insurance for your business.

By following these steps and ensuring you meet all the requirements, you’ll be well-prepared to operate legally and successfully as a contractor in North Dakota.

See the Official Document:

Frequently Asked Questions (FAQ)

These are common questions about General Contractor License in North Dakota.

Any individual or business engaging in construction activities, including building, repairing, altering, or demolishing structures, with a project cost exceeding $4,000 must be licensed in North Dakota.

North Dakota offers licenses for general contractors, electricians, plumbers, HVAC contractors, and roofers. Each trade has specific licensing requirements.

You must first determine if your business needs to be registered with the Secretary of State. Then, submit your contractor license application through the FirstStop Portal, including necessary documents like liability insurance and Workforce Safety & Insurance verification.

Contractors must carry general liability insurance, and if they have employees, workers’ compensation insurance. The liability insurance certificate must list the North Dakota Secretary of State as the certificate holder.

Yes, contractor licenses in North Dakota must be renewed annually by March 1. The renewal process includes submitting a project listing, certification of paid taxes, and an updated liability insurance certificate.