Licensing Guides
State Contractor License: How to Become a General Contractor in North Dakota
Contractor, ND
Table of Contents
Why Do You Need a Contractor License in North Dakota?
How Can You Get a Contractor License in North Dakota?
Types of General Contractor Licenses in North Dakota
What Are the Requirements of a North Dakota Contractor License?
How Long Does It Take to Get a Contractor License in North Dakota?
How Much Does It Cost to Get a Contractor License in North Dakota?
North Dakota Contractor License Training Programs and Schools
Does North Dakota Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in North Dakota?
Are There Any Penalties for Contracting Without a License in North Dakota?
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 people 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). North Dakota employs 950 managers and 3,420 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033 and 8% for laborers and helpers. In North Dakota, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for laborers and managers is much higher, at 15% and 14%, respectively. 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 get started as a licensed contractor in the state of North Dakota.
Why Do You Need a Contractor License in North Dakota?
A contractor license is necessary to perform most work legally in the state of North Dakota. Specifically, according to the North Dakota Century Code, a contractor license is required to perform any construction work valued higher than $4,000. Construction work is defined as, “building, repairing, altering, dismantling, or demolishing real or personal property, parcels of land, and structures that are permanently attached to the land. Examples include bridges, highways, roads, streets, buildings, airports, dams, and pipelines. It also includes property that is for sale or rent.” Licensing is overseen by the North Dakota Secretary of State.
The contractor licensing requirement serves multiple crucial purposes. It protects consumers by ensuring contractors have met specific professional standards, carry appropriate insurance, and have the necessary skills to complete construction work safely and effectively. Licensing helps maintain quality standards in the construction industry, provides accountability, and gives property owners confidence when hiring contractors. By regulating who can perform construction work, North Dakota aims to prevent substandard work, reduce potential safety risks, and ensure contractors are financially responsible and professionally qualified.
How Can You Get a Contractor License in North Dakota?
The licensing requirements are spelled out on the Secretary of State’s website.
First, you will need to register your business with the Secretary of State. Conduct a business search and trademark search to make sure your business name is unique. When registering your business, you'll need to provide comprehensive information about your company's structure, ownership, and operational details. This includes the type of entity (such as sole proprietorship, LLC, corporation), primary business address, and contact information. The Secretary of State's office will review your application to ensure all required documentation is complete and accurate. It's recommended to prepare supporting documents like your Articles of Organization or Incorporation and any relevant professional certifications.
You also need to obtain general liability insurance. General liability insurance protects both the contractor and potential clients from financial risks associated with construction work. The liability insurance must be in the same name you include on the contractor license. List the North Dakota Secretary of State, 600 E Boulevard Ave, Dept 108, Bismarck, ND 58505, as the certificate holder.
If you have employees, you’ll need a current certificate of payment from Workforce Safety & Insurance (WSI) to verify workers’ compensation insurance coverage, which shows your commitment to worker safety and financial responsibility. Contractors with no employees must obtain a certificate of good standing from WSI.
Types of Contractor Licenses in North Dakota
North Dakota has four contractor license classifications, based on the maximum value of the job to be performed. Each contractor license class is designed to match the scale and complexity of the construction project. The classification system helps regulate contractors based on their capabilities and project scope:
Classes include:
Class A: Over $500,000 per job
Class B: Up to $500,000 per job
Class C: Up to $300,000 per job
Class D: Up to $100,000 per job
Getting a general contractor license
The bottom line is you need to be licensed to do any kind of initial residential or commercial construction, repair, or maintenance work valuing more than $4,000 in the state of North Dakota. Here’s the process for becoming a licensed contractor in North Dakota.
REGISTER YOUR BUSINESS: Register your business with the North Dakota Secretary of State. Make sure your business name is unique by conducting a business search and trademark search.
OBTAIN REQUIRED INSURANCE: Obtain general liability insurance that lists the North Dakota Secretary of State as the certificate holder. If you have employees, you’ll also need workers’ compensation coverage. For sole proprietors with no employees, you’ll need a letter of good standing from Workforce Safety & Insurance.
FILL OUT APPLICATION: Finally, submit a contractor license application using the North Dakota Secretary of State’s FirstStop Portal. You’ll have to pay an application fee based on your license class:
Class A: $450
Class B: $300
Class C: $225
Class D: $100
What Are the Requirements of a North Dakota Contractor License?
There are insurance requirements and financial prerequisites.
You need a business registration number from the North Dakota Secretary of State.
Pay all fees.
File evidence of general liability insurance, and workers' compensation insurance if you have employees. Obtain a letter of good standing from Workforce Safety & Insurance if you don’t have employees.
There are more requirements for specialized contracting. For example, becoming a licensed electrician requires 8,000 hours of on-the-job experience, or 6,000 hours of job-related experience plus the completion of a two-year electrical school program. To become a licensed journeyman plumber, you must first complete a four-year apprenticeship program.
For asbestos abatement, you need an Asbestos Abatement License issued by the North Dakota Department of Environmental Quality, which requires applicants to attend a training program.
For those interested in specific trade licenses, we recommend consulting our comprehensive guides to getting an electrical, plumber, or HVAC license in North Dakota to understand the full scope of requirements and opportunities.
How Long Does It Take to Get a Contractor License in North Dakota?
The licensing process in North Dakota is designed to be straightforward and efficient. While there are no extensive advanced education requirements, the process still involves careful review and verification. Typically, contractors can expect the entire process to take approximately two to four weeks from application submission to license approval. This timeline can vary depending on the completeness of your application, the complexity of your business structure, and the current processing times of the Secretary of State's office.
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.
ServiceTitan features:
SMS communications that keep customers informed about the technician’s visit.
Location-specific service history, including recorded calls, accessible from the mobile app.
Required forms that ensure every job is done right, driving consistency.
The ability to build multi-option proposals with photos and financing options, on-site, in minutes.
Sales presentations that make conversations with customers easier and drive up the average ticket price.
Mobile payment acceptance, eliminating lost checks and increasing cash flow.
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How Much Does It Cost to Get a Contractor License in North Dakota?
The application fee for a North Dakota license depends on the maximum value of the jobs to be performed:
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
North Dakota Contractor License Training Programs and Schools
While North Dakota does not mandate specific educational requirements for obtaining a contractor license, the state offers numerous pathways for professional development and skill enhancement in the construction industry. The absence of mandatory coursework provides flexibility for aspiring contractors to pursue their careers through various educational and experiential routes.
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 several higher education options throughout the state that offer these types of programs. They include:
If you don’t attend any formal schooling or training, but want to learn on the job, you may want to consider an apprenticeship. Apprenticeships represent a dynamic alternative to traditional academic paths, offering practical, on-the-job learning experiences.Through an apprenticeship, you work, accumulate necessary experience, and can earn money all at the same time. The length of time to complete an apprenticeship depends on the trade and program. A list of registered apprenticeship opportunities is available through Job Service North Dakota. Registered apprenticeship sponsors include:
Does North Dakota Reciprocate Contractor Licenses?
Unlike for plumbers and electricians, North Dakota doesn’t offer contractor license reciprocity with any other states. Professionals from other states must complete the full North Dakota licensing process. This approach ensures all contractors meet the state's specific professional standards, safety requirements, and regulatory guidelines.
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Do I Need to Renew my Contractor License in North Dakota
Yes, North Dakota contractor licenses are required to be renewed annually by March 1. To complete the online renewal process, you will need:
List of each project, contract, or subcontract completed in North Dakota during the previous calendar year that exceeded $25,000
Certification that all payroll taxes, Workforce Safety and Insurance premiums, and unemployment insurance premiums are up to date
Certificate of liability insurance
The renewal fee depends on the license class:
Class A: $90
Class B: $60
Class C: $45
Class D: $30
Are There Any Penalties for Contracting Without a License in North Dakota?
Yes, it is a Class A misdemeanor to act as a contractor in the state of North Dakota without a license. Unlicensed contractors are subject to penalty fees or imprisonment.
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 North Dakota 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.
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