Licensing Guides
State Contractor License: How to Become a General Contractor in Delaware
Contractor, DE
Table of Contents
Why Do You Need a Contractor License in Delaware?
How Can You Get a Contractor License in Delaware?
Types of Contractor Licenses in Delaware
What Are the Requirements of a Delaware Contractor License?
How Long Does It Take to Get a Contractor License in Delaware?
How Much Does It Cost to Get a Contractor License in Delaware?
Delaware Contractor License Training Programs and Schools
Does Delaware Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in Delaware?
Are There Any Penalties for Contracting Without a License in Delaware?
We all need a place to live and work, and those buildings require upkeep and repair. They are often the biggest investments we make in our lives and keeping them in good condition is essential. We count on professionals to know how to fix damage to or wear and tear on our homes and businesses. General contractors are typically the experts we rely on to help us with these repairs, and we need these men and women to know what they’re doing.
Many states require contractors to be licensed. Others simply require solid insurance to back up the essential work they perform. There are 520,900 construction managers and 1,599,800 construction laborers and helpers nationwide, according to the Bureau of Labor Statistics (BLS). Delaware employs 700 managers and 2,460 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033 and 8% for laborers and helpers. In Delaware, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for laborers is 7% and 9% for managers. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the contractor license requirements in your state or local jurisdiction. This guide walks you through the licensing process for the state of Delaware.
Why Do You Need a Contractor License in Delaware?
Delaware doesn’t offer a statewide general contractor license. Instead, any contractors conducting business activity in Delaware are required to register as a Construction Contractor and obtain a business license from the Delaware Division of Revenue.
The Delaware Contractor Registration Act defines a contractor as someone who “engages in construction services or maintenance under an express or implied contract on behalf of another entity or individual for profit within the State, and includes any subcontractor or lower tier subcontractor of a contractor.”
Additionally, Delaware offers specialty trade licenses for electricians, plumbers, pump installers, and HVACR professionals, which are issued by the Delaware Division of Professional Regulation. The state also offers an asbestos abatement license.
How Can You Register as a Contractor in Delaware?
The process for registering as a contractor is spelled out on the state website.
You must be at least 18 years of age. You must provide either a Social Security number or a Federal Employer Identification Number (FEIN). You also need to provide the contact information for each person with financial interest in business.
You must specify your business type, such as LLC, corporation, or partnership, and obtain a Delaware business registration.
If you work in Delaware but live in another state, you must register as a non-resident contractor and obtain a surety bond.
You must submit a safety plan compliant with Occupational Safety and Health Administration (OSHA) standards or provide evidence you are creating a compliant plan.
You must obtain workers’ compensation insurance, liability insurance, and unemployment insurance.
Finally, you must submit the contractor registration application and pay the registration fee.
Types of Contractor Licenses in Delaware
Instead of offering a state license, Delaware requires contractors to register as a Construction Contractor and obtain a business license. Some cities in Delaware have additional licensing requirements. For example, Dover requires contractors to also obtain a business license from the city.
The Construction Contractor Registration allows the license holder to perform construction services, which the Division of Revenue defines as any building work or improvements of any type on a building or structure. The Registration covers both residential and commercial work.
Getting a general contractor registration
The bottom line is that you need to register as a construction contractor to do any kind of residential or commercial construction, repair, or maintenance work in the state of Delaware. Here’s how you go about getting licensed.
APPLY FOR LICENSE: You can apply for the contractor registration online via the state’s One Stop portal.
OBTAIN A BUSINESS LICENSE: You must specify your business type, include all people who have a financial stake in the business, and obtain a business license from the Delaware Division of Revenue. You must also register all employees with the Delaware Department of Labor.
PAY REGISTRATION FEE: The initial registration fee for the Contractor Registration is $300 if your business will bid on state contracts. The fee is $200 for businesses that don’t bid on state contracts.
COMPLETE CRIMINAL BACKGROUND CHECK: Instead of completing a typical background check, you are required to specify on the application if you have been charged with any labor law violations or fraud within the previous two years. If so, you need to provide the dates and outcomes of each violation, including settlements, fines, penalties, or court decisions.
PROVIDE PROOF OF INSURANCE: All contractors in the state of Delaware are required to obtain liability insurance, workers’ compensation insurance, and unemployment insurance. According to the Division of Revenue, “Delaware law, with limited exceptions, requires all employers to secure workers' compensation insurance to cover all their full-time, part-time, seasonal or occasional employees prior to hiring and working in the State.”
OBTAIN A SURETY BOND: Any contracting business that performs construction work in Delaware but is based out of the state must register as a non-resident contractor and obtain a surety bond. The bond is not required for resident contractors.
Getting a specialty trade license
The Delaware Division of Professional Regulation issues several trade-specific licenses, including for electricians, plumbers, and HVAC techs.
These licenses typically require more stringent licensing requirements, including several years of on-the-job work experience and classroom training. For example, to qualify for a Delaware electrician license, you need to obtain 8,000 hours (four years) of work experience. To qualify for a Delaware plumber’s license, you also need to obtain four years of experience, with at least 144 hours of classroom training per year.
You can also consult our guides to getting your HVAC license, plumbing license, or electrical license in Delaware.
What Are the Requirements of a Delaware Contractor License?
There are age and financial prerequisites.
You must be at least 18 years of age.
You must have either a Social Security number or a Federal Employer Identification Number.
You must specify your business type, such as LLC, corporation, or partnership, and obtain a Delaware business license. You also need to include the contact information for each person with financial interest in the contracting business.
You must register all employees with the Delaware Department of Labor.
Apply for the Contractor Registration online via the One Stop portal.
Provide documentation of workers’ compensation insurance, liability insurance, and unemployment insurance coverage.
Submit a Safety Plan compliant with Occupational Safety and Health Administration (OSHA) standards or provide evidence you are creating a compliant plan.
Pay the Contractor Registration fee.
Secure contractor’s surety bond if registering as an out-of-state contractor.
How Long Does It Take to Get a Contractor License in Delaware?
The process for obtaining a Delaware Contractor Registration is relatively quick as there are no experience or education requirements to become a licensed contractor.
According to the Department of Labor Office of Contractor Registration, “After the Delaware Office of Contractor Registration receives a completed application and the corresponding fee, and assuming that there are no outstanding issues or violations, the Office of Contractor Registration will issue a Certificate of Registration.”
You will receive your certificate of registration via the email you used during the application process.
What Business Owners Need to Know
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ServiceTitan features:
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Mobile payment acceptance, eliminating lost checks and increasing cash flow.
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How Much Does It Cost to Get a Contractor Registration in Delaware?
The initial registration fee for the Contractor Registration is $300 if your business bids on state contracts. If your business won’t bid on state contracts, the registration fee is $200. You will also incur expenses for obtaining liability insurance, workers’ compensation insurance, and unemployment insurance.
Delaware Contractor Training Programs and Schools
There are no specific educational or course requirements. However, there are training programs throughout the state that can help you prepare for a career in construction.
Many candidates complete an apprenticeship to gain job experience in the trades. Delaware offers a Registered Apprenticeship program that enables apprentices to “earn while they learn.” The program features nearly 500 employer sponsors and more than 30 occupations, with the top five including electrical, HVAC, plumbing, carpentry, and construction labor.
Due to the close proximity to Maryland, the Delaware Registered Apprenticeship program also accepts candidates from Maryland.
If you choose to start your career path at a college or university, you can pursue a degree in construction management or construction engineering. There are many higher education options throughout the state that offer these types of programs. Each of the following schools offers a Construction Management Bachelor of Science degree.
There are also Delaware Community Colleges throughout the state that offer Construction Management programs and Associate degree and certificate options.
Does Delaware Reciprocate Contractor Licenses?
Delaware offers license reciprocity for several trades-specific licenses including electricians and plumbers. While the state does not offer direct reciprocity for the Contractor Registration, it does allow contractors from other states to register as long as they first obtain a surety bond. Otherwise, the licensing requirements are the same as for in-state contractors.
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Do I Need to Renew my Contractor License in Delaware?
To keep your state-issued active license current, you must renew it before it expires one year from the date of issuance.
According to the Delaware Contractor Registration Act, “A certificate of registration must be renewed no less than 30 days before the expiration date of a certificate of registration. The Department may deny the certificate of registration if the contractor has violated this chapter or any law under § 3605(b)(4) of this title during the registration period that is expiring.”
After working as a registered contractor for at least two years with no penalties or violations, you can switch to a two-year renewal.
The renewal fee for a one-year registration is $300 or $500 for a two-year registration.
Are There Any Penalties for Contracting Without a License in Delaware?
Yes. There are fines for contracting without a license. According to the Delaware Contractor Registration Act, a knowing violation is subject to a civil penalty of not less than $5,000 and not more than $85,000 per violation. A violation that is not a knowing violation may be subject to a civil penalty of not more than $1,000 per violation.
National Certifications
Other certifications can help you demonstrate your proficiency to potential employers and clients. There are many professional organizations that offer certification. These certifications are not required but can add to your marketability and therefore increase your opportunity to make more money.
Some of the top construction certifications are:
Occupational Safety and Health Administration (OSHA) Safety Certificate
Construction Management Association of America Certified Construction Manager (CCM)
National Association of Safety Professionals (NASP) Certified Safety Manager (CSM) certification
National Center for Construction Education & Research (NCCER)
Continuing Education
Though Delaware does not require continuing education to renew your registration, you will want to stay informed about emerging technology in the industry. There are many ways to keep yourself current in regard to the technology put to use in construction, roofing, energy and environmental designs, efficiency standards and more. For example, distributors want you to know about their company’s latest offerings and will often hold training sessions about new and changing equipment and parts. Another option is the Associated General Contractors of America (AGC) which provides continuing education courses.
Resources
You can stay up to date on contracting industry news several ways:
Check top blogs, including ServiceTitan’s blog.
Read about the latest industry trends, and discover ideas on how to grow your business.
Listen to top podcasts like ServiceTitan’s “Toolbox for the Trades” podcast.
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