Vermont contractor license requirements

Licenses and registrations

Residential Contractor registration (individual)

Self-employed contractors with no employees who build, demolish or alter a dwelling or building with four or fewer residential units, including interior and exterior work, painting, paving, roofing, weatherization, and heating, plumbing, solar, electrical, water or wastewater systems.

• When it applies: Statute (26 V.S.A. § 5501): contracts for more than $10,000.00, including labor and materials. OPR's FAQ describes it as an estimated value of $10,000 or more.
• Good to know: Fee $75.00. Barter or non-cash pay counts toward the threshold.

Residential Contractor registration (business)

Residential contracting businesses with employees. Employees work under the business registration and do not register separately.

• When it applies: Same threshold as individual registration.
• Good to know: Fee $250.00.

What you need to qualify

• Exams: No exam is described for registration.
• Insurance: Minimum liability insurance of $1,000,000.00 per occurrence and $2,000,000.00 aggregate. A certificate of insurance is required with the initial application and each biennial renewal.
• Financial: Applicants must have satisfied any judgment order related to professional services provided to a homeowner.
• Business registration: The business name must be registered and active with the Secretary of State's Corporations division, and any name used on contracts must be registered with both SOS Business Services and OPR.
• Also required: Applicants attest that they will use written contracts. Contractors must follow Vermont's residential and commercial building energy standards. Exempt: employees of a registered business, state-licensed tradespeople working within their trade, engineers and architects, appliance and electronics installers, work on structures not attached to a home, emergency work (register as soon as possible), and owners working on their own property. Subcontractors hired by another contractor do not need to register.

Fees, renewal and continuing education

• Fees: Individual registration $75.00. Business registration $250.00. Optional state certifications $75.00 for the first and $25.00 for each additional. Paid at initial application and at each biennial renewal.
• Renewal: Every 2 years (biennial).

Contracts and homeowner protections

A written contract must be signed before taking a deposit when labor and materials exceed $10,000. It must include a price provision (maximum price, time and materials with a cap, or time and materials with no cap), estimated start and completion dates, a scope of work, and a change order provision requiring signed written amendments. With a maximum-price contract, the down payment may be up to one-half of the labor cost or one-half of the materials price, whichever is greater. Failing to use a required written contract is unprofessional conduct. OPR does not award damages or mediate disputes; billing disputes go to the Attorney General's Consumer Assistance Program or small claims court.

Electrical, plumbing and HVAC work

The Vermont Division of Fire Safety (Department of Public Safety) licenses electricians and plumbers, and certifies gas technicians and oil burner installers.

Working without a license

Practicing without required registration can bring an injunction and a civil penalty of up to $5,000.00. Unauthorized practice can also be punished by a fine of up to $5,000.00, up to one year in prison, or both (3 V.S.A. § 127).

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:

• Continuing education requirements (none found; administrative rules listed as coming soon).
• Which voluntary state certifications are available.
• Local (town) licensing rules for contractors.
• Whether HVAC work other than gas and oil burner work needs a separate state license.

Sources

1. OPR Residential Contractors
2. OPR Residential Contractor FAQs
3. OPR Residential Contractors: Apply & Renew
4. OPR Residential Contractors: Statutes, Rules & Resources
5. 26 V.S.A. Chapter 106 Residential Contractors (full chapter)
6. 3 V.S.A. § 127 Unauthorized practice
7. Vermont Division of Fire Safety: Licensing