Licensing Guides
State Contractor License: How to Become a General Contractor in Maryland
Contractor, MD
Table of Contents
Why Do You Need a Contractor License in Maryland?
How Can You Get a Contractor License in Maryland?
Types of Contractor Licenses in Maryland
What Are the Requirements of a Maryland Contractor License?
How Long Does It Take to Get a Contractor License in Maryland?
How Much Does It Cost to Get a Contractor License in Maryland?
Maryland Contractor License Training Programs and Schools
Does Maryland Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in Maryland?
Are There Any Penalties for Contracting Without a License in Maryland?
We all need a place to live and work, and those buildings require upkeep and repair. They’re 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). Maryland employs 5,780 managers and 20,450 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033 and 8% for laborers and helpers. In Maryland, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for laborers and managers is 9%. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the requirements in your state or local jurisdiction. This guide will help you determine what you need before you start the licensing process.
Why Do You Need a Contractor License in Maryland?
A contractor license is necessary to perform most work legally in the state of Maryland. Maryland offers a Home Improvement Contractor license and a Home Improvement Salesperson license. The salesperson license allows you to represent a licensed contractor in contract negotiations and sell services to customers, but not physically perform contracting work.
The Maryland Home Improvement Commission, a subdivision of the Department of Labor, Licensing and Regulation (DLLR), licenses and regulates Home Improvement Contractors and Salespersons in the state.
For other trades, the Maryland Department of Labor issues licenses for plumbers and HVAC technicians, while the Maryland State Board of Electricians licenses journeyman and master electricians.
The bottom line is that you need to be licensed to do any kind of initial residential or commercial construction, repair, or maintenance work in the state of Maryland.
How Can You Get a Contractor License in Maryland?
There is a process for getting your license. It is all spelled out on the state website.
You must be at least 18 years of age. You must have either a Social Security number or an individual taxpayer identification number.
You need to provide proof of at least two years of experience in home improvement work, construction work, and/or related education. Candidates typically earn the experience by working under a licensed contractor or attending a trade school or university.
One way to get the experience you need is through an apprenticeship program. The Maryland Apprenticeship and Training Program (MATP) and Apprentice Maryland both offer a registered apprenticeship program to help you gain experience.
Additionally, you need to register your business name with the Maryland Department of Assessment and Taxation, provide a financial statement, obtain a certificate of liability insurance of at least $50,000, and submit the license application package.
Types of Contractor Licenses in Maryland
There are two classifications for General Contractors in Maryland.
Home Improvement Salesperson license
The Home Improvement Contractor license allows the holder to legally perform home improvement work that includes alteration, remodeling, repair or replacement of a building or part of a building used as a residence.
The Home Improvement Salesperson license allows the holder to legally represent a licensed contractor in contract negotiations and sell services to customers, but not physically perform contracting work.
Getting a general contractor license
To recap, the state license for contractors is the Maryland Home Improvement Contractor license. Maryland’s Home Improvement Law defines home improvement as “the addition to or alteration, conversion, improvement, modernization, remodeling, repair, or replacement of a building or part of a building that is used or designed to be used as a residence or dwelling place or a structure adjacent to that building; or an improvement to land adjacent to the building.” In other words, the Maryland Home Improvement Contractor license allows the holder to legally perform commercial or residential contracting work whether that be initial construction, service, or replacement to properties.
APPLY FOR LICENSE: Once you’ve fulfilled the work experience requirements, you may apply for a MHIC license. You are essentially applying to sit for the exam. There are currently two ways to complete the application process:
Online: Apply via the online portal.
Mail: Send the application package with a photo and a check or money order to the Maryland Home Improvement Commission, P.O. Box 17410, Baltimore, Maryland 21297-1410.
Regardless of how you apply, you need to include all of the required documentation when you submit the license application.
PAY APPLICATION PROCESSING FEE: The initial license fee for the Home Improvement license is $370. You can pay this fee online by credit card, or by sending a check or money order if you plan to mail your application.
TAKE LICENSING EXAM: After meeting the licensing requirements, contact PSI Exams to schedule your licensing exam. You can choose from multiple testing centers across Maryland. The fee to take or retake the contractor exam is $63 and can be paid directly to PSI.
According to the Maryland Home Improvement Commission, “Many community colleges offer an MHIC exam prep course. A course is not required. Montgomery College offers an exam prep course in Spanish.”
COMPLETE CRIMINAL BACKGROUND CHECK: The background check process requires applicants to attest to any criminal convictions.
According to the MHIC, “Each applicant is required to report to the Commission any conviction of a felony or a misdemeanor that is directly related to the fitness and qualifications of the applicant or licensee to engage in home improvement services. The applicant must provide a "true-test copy" [certified copy] from the clerk's office of the court where the conviction occurred.”
PROVIDE PROOF OF INSURANCE: Applicants must obtain a certificate of general liability insurance of at least $50,000 or more and designate the Maryland Home Improvement Commission as the certificate holder at the address: 500 N. Calvert St., Room 306, Baltimore, Maryland 21202.
PROVIDE PROOF OF FINANCIAL SOLVENCY OR CONTRACTOR BOND: Applicants must meet the Commission's financial solvency guidelines based upon their personal assets, such as real estate and bank statements. You must provide a financial statement demonstrating financial solvency or obtain a two-year surety bond in the amount of $20,000 and supply a credit report from one of the three credit bureaus. The Commission requires contractors to demonstrate financial solvency because the state Guaranty Fund compensates homeowners up to $20,000 for property damage caused by the contractor or subcontractor.
Getting a specialty license
Maryland doesn’t offer a specialty license. Rather, the state issues individual licenses for specialty trades including HVAC, electrician, plumber, masonry, and drywall.
You can also consult our guides to getting your HVAC license, plumbing license, or electrical license in Maryland.
What Are the Requirements of a Maryland Contractor License?
The requirements for licensure as a contractor in Maryland are all intended to demonstrate that an individual who will be serving the public is properly prepared to do the job right. To that end there are age, knowledge/experience, and financial prerequisites.
You must be at least 18 years of age.
You must have either a Social Security number or an individual taxpayer identification number.
Obtain two years of experience doing home improvement work.
Pass the licensing examination administered by PSI Exams prior to applying for license.
Register your business name with the Maryland Department of Assessment and Taxation.
Provide a financial statement. If financial solvency is not met, obtain a two-year surety bond in the amount of $20,000.
Provide real estate and bank statements for property, vehicles, and other assets.
Obtain a credit report from one of the three credit bureaus.
Obtain a certificate of liability insurance of at least $50,000.
If applicable, provide a copy of any felony or drug conviction records since Jan. 1, 1991, and any misdemeanors related to home improvement work.
Mail the application package with a photo and a check or money order in the amount of $370 to the Maryland Home Improvement Commission, P.O. Box 17410, Baltimore, Maryland 21297-1410. You can also apply online.
How Long Does It Take to Get a Contractor License in Maryland?
Applicants for a Home Improvement Contractor's license must provide proof of at least two years of experience in home improvement work, construction and/or related education. Candidates typically earn the experience by working under a licensed contractor or attending a trade school or university.
After you submit all required documentation, the MHIC says Home Improvement Contractor licenses are typically approved in 10 to 15 days.
What Business Owners Need to Know
Being efficient in the contracting world, no matter where you are in your licensing journey, takes work. ServiceTitan’s cloud-based, all-in-one contracting software gives workers and business owners in residential field service, commercial contracting, or new construction the technology they need to do the work efficiently, and the data they need to do it effectively.
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Location-specific service history, including recorded calls, accessible from the mobile app.
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Sales presentations that make conversations with customers easier and drive the average ticket.
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To learn more, schedule a demo with a product expert today.
How Much Does It Cost to Get a Contractor License in Maryland?
The application fee for a Home Improvement Contractor’s License is $370. The fee to take the licensing exam is $63. Maryland contractors also need to obtain a certificate of general liability insurance of at least $50,000 and either demonstrate financial solvency or purchase a surety bond in the amount of $20,000.
Additionally, any courses taken at a university or trade school will add to the costs. On the other hand, if you start an apprenticeship, you’ll get paid while you train.
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Maryland Contractor License Training Programs and Schools
There are no specific educational or course requirements to get a Maryland contractor license. However, there are training programs throughout the state that can help you prepare for a career in construction.
The Maryland Apprenticeship and Training Program (MATP) and Apprentice Maryland both offer a registered apprenticeship program to help you obtain the required experience.
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 Old Line State that offer these types of programs. Each of the following schools offers a Construction Management Bachelor of Science or Associate of Applied Science degree. The University of Maryland also offers a Master’s Degree in Construction Management.
Does Maryland Reciprocate Contractor Licenses?
Maryland doesn’t reciprocate Home Improvement licenses with any other states.
Do I Need to Renew my Contractor License in Maryland?
To keep your state-issued active license current, Maryland requires you to renew your Home Improvement license before it expires every two years. License holders must pay the Guaranty Fund assessment fee of $150 to remain in good standing. The fee goes toward a fund to pay homeowners in the event a home improvement contractor performs substandard work.
Are There Any Penalties for Contracting Without a License in Maryland?
Yes. There are fines, misdemeanor charges, and even possible jail time for contracting without a license in Maryland. Performing contracting work without a license is considered a misdemeanor, and penalties include a fine of up to $1,000, imprisonment for up to 6 months, or both for the first offense. Penalties for subsequent offenses increase to $5,000 and up to 2 years in jail, or both.
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 Maryland does not require continuing education to renew your license, 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.
ServiceTitan is a comprehensive business software solution built specifically to help service companies streamline their operations, boost revenue, and achieve growth. Our award-winning, cloud-based platform is trusted by more than 100,000 contractors across the country.
Ready to learn more about what ServiceTitan can do for your business? Contact our team to schedule a demo today.