North Dakota contractor license requirements

Licenses and registrations

Class A contractor license

Contractors doing construction, repair, alteration, dismantling or demolition work.

• When it applies: More than $4,000 per job (NDCC 43-07-02).
• Good to know: No limit on single project value.

Class B contractor license

Same as Class A.

• When it applies: More than $4,000 per job.
• Good to know: Single projects up to $500,000.

Class C contractor license

Same as Class A.

• When it applies: More than $4,000 per job.
• Good to know: Single projects up to $300,000.

Class D contractor license

Same as Class A.

• When it applies: More than $4,000 per job.
• Good to know: Single projects up to $100,000.

Transient Merchant License (Attorney General)

Contractors or service providers not originally from the local area, according to the Attorney General.

• Good to know: Issued by the North Dakota Attorney General, separate from the contractor license.

What you need to qualify

• Experience: The application requires a signed statement of the applicant's experience and qualifications.
• Insurance: A certificate of liability insurance in the same name as the license, listing the North Dakota Secretary of State as certificate holder (no minimum amount is stated). Workers' compensation: a certificate of payment from Workforce Safety & Insurance (WSI) if the contractor has North Dakota employees, or a WSI letter of good standing if not.
• Business registration: Corporations, LLCs and other entities must be registered with the Secretary of State. Sole proprietors may need to register a trade name and general partnerships a fictitious partnership name. The business name on the license must match the registration.
• Also required: Renewal requires a list of each project over $50,000 completed in North Dakota the prior calendar year and certification that payroll taxes, WSI and unemployment premiums are paid. Contractors must give their license number when applying for a building permit (NDCC 43-07-24).

Fees, renewal and continuing education

• Fees: Initial license: Class A $450, Class B $300, Class C $225, Class D $100. Annual renewal: Class A $90, Class B $60, Class C $45, Class D $30 (NDCC 43-07-07).
• Renewal: Annual. The contractor year runs March 2 through March 1, and renewal is due on or before March 1. A contractor who misses the deadline has until June 1 to renew with a $50 penalty fee (NDCC 43-07-10).

Contracts and homeowner protections

The Attorney General advises a written contract with the contractor's license number, start date, duration, detailed work description, materials, subcontractors, warranties and who gets permits. State law presumes abandonment after missed start or completion dates and requires a contractor to refund an advance payment on request when that presumption arises (NDCC 43-07-14). For one- or two-family dwellings, owners must give written notice of a construction defect within six months of discovering it (NDCC 43-07-26). Retainage is capped at 10% of each estimate until the project is 50% complete (NDCC 43-07-23).

Electrical, plumbing and HVAC work

Electricians and electrical contractors are licensed by the State Electrical Board (NDCC 43-09). Plumbers are licensed by the State Board of Plumbing (NDCC 43-18). The Secretary of State notes electrical, plumbing and asbestos abatement work need separate licenses from other agencies.

Working without a license

Acting as a contractor without a license is a class A misdemeanor. The Secretary of State may also assess a civil penalty of up to three times the license fee. An unlicensed contractor cannot maintain a court claim related to contracting work (NDCC 43-07-02). The Attorney General can act against unlicensed persons under the consumer fraud law.

What to confirm with the state

We couldn't confirm these on an official page when we checked. Ask the licensing office before you rely on them:

• Minimum liability insurance amount (none is stated on the Secretary of State page or in the chapter text we checked).
• Whether HVAC/mechanical contractors need a separate state license.
• City-level contractor licensing (for example Fargo, Bismarck, Grand Forks).
• Any North Dakota statutory 3-day cancellation right or roofing/storm-damage contract rules.
• Note: the Attorney General page says $4,000 or more; the statute and Secretary of State say more than $4,000. The statute wording was used.

Sources

1. Contractors - North Dakota Secretary of State
2. North Dakota Century Code Chapter 43-07 - Contractors
3. Hiring a Contractor - North Dakota Attorney General
4. North Dakota Century Code Chapter 43-09 - Electricians
5. North Dakota Century Code Chapter 43-18 - Plumbers