Contractor licensing
Most states regulate construction contractors through a licensing board, and working without a required license can mean fines, no lien rights, and unenforceable contracts. There is no single federal contractor license — licensing is state (and sometimes local) law.
What a contractor license covers
A contractor license generally authorizes a person or company to perform, bid, or contract for certain classes of construction work in that state. Requirements commonly include a trade exam, a business/law exam, proof of experience, a bond, and proof of insurance or workers' compensation.
Why it matters
- In states that require a license, an unlicensed contractor can be barred from enforcing a contract and can lose mechanic's lien rights.
- Licensing class and limits vary by state — and sometimes by county or city.
- Reciprocity (recognizing another state's license) is the exception, not the rule, and is negotiated state-to-state.
Related tools and support
Visit GC Experts for contractor business support. FedTrakker currently leads to the GC Experts site. For project-specific legal advice, find counsel.