Subcontractors, unlike general contractors, only focus on a single aspect of the building, like masonry or the installation of electrical and plumbing systems.
In several states, subcontractors are required to have certain licenses, credentials, and certificates before being employed.
Keep on reading this article to find out all subcontractor licensing, credentialing, and certification information.
Subcontractor Credentialing Information
Independent subcontractors are employed by general contractors to do specific tasks on construction projects.
Most of the state agencies that oversee the construction industry need credentials from general contractors and some subcontractors.
Candidates frequently get credentials which could be certification or licensure that enables them to legally perform their trade.
There are various subcontractor licensing requirements or certification choices for different professions, such as plumbers, electricians, masons, and carpenters.
Plumbers, electricians, and masons are among the subcontractors who need licenses or certifications to perform their trades.
Painters, carpenters, and drywall hangers are examples of subcontractors who are exempt from certification or licensing requirements.
Subcontractor Certification Information
A subcontractor’s training, expertise, and professionalism are officially confirmed by a subcontractor certification.
Subcontractors may need to enroll in classes in a specific program to obtain a certification.
These classes can teach students how to handle their finances, how to be safe on construction sites, how to motivate their staff, and how to operate certain machinery.
Prior building expertise, familiarity with computers and software, and knowledge of the tools and techniques used in the field are required for these classes.
Depending on the school and program, subcontractor certificates can be completed in at least two semesters.
Subcontractor certificates can also serve as evidence of your expertise to both companies and future clients.
Subcontractor Certifications
Governmental bodies, for-profit businesses, and construction associations are some of the entities that award construction certifications.
Below is a list of certifications that are beneficial to subcontractors in their field:
Read more: What Is NRP Certification In Nursing?
1.Occupational Safety and Health Administration (OSHA) Safety Certificate
The OSHA outreach training program offers you additional in-depth instruction on safety procedures and health risks at your workplaces.
Supervisors and employees who will be in charge of overseeing construction safety on project sites should both get the 30-hour certification.
As part of this training, general construction workers and subcontractors will learn how to handle workplace health issues and comprehend the Federal Register.
Recognizing OSHA safety breaches and applying personal safety regulations are other topics covered in training.
It takes at least two years of prior building experience to complete this curriculum and the certificate can be obtained without taking a written exam or having to renew it.
2. FAA Part 107 UAS (Commercial Drone) Certification
With an FAA Part 107 UAS Certification, you can become qualified to use tiny unmanned aerial drones for commercial purposes.
Drones for construction can expedite inspections, reporting and tracking needs, and surveying tasks.
If you or a member of your firm has an FAA certification allowing them to fly drones commercially, a $5,000 drone might save your business hundreds of thousands of dollars for a year.
3. Professional Surveying Licensure – NCEES Certification
While many surveying tasks in the construction industry don’t require certification, you must have a surveying license to lawfully survey to delineate a property’s borders.
Obtaining your professional surveying license is a must if you want to be able to oversee surveying crews or conduct your surveys.
The National Council of Examiners for Engineering and Surveyors (NCEES) is the agency in charge of regulating certificates and examinations for surveyors.
4. ACI Certification
For artisans, technicians, inspectors, and subcontractors, the American Concrete Institute (ACI) offer a certification program.
In the almost 30 various construction testing, inspection, and construction activities related to concrete construction, over 550,000 construction professionals have attained an ACI certification.
These certificates are some of the most helpful to earn if you work with concrete or anything involving aggregates.
Read More: What Is The FACHE Credential?
5. Leadership in Energy and Environmental Design (LEED) Credentials
A LEED certification demonstrates expertise in sustainable design, construction, and operating standards.
To help them advance their professions, almost 203,000 professionals have acquired their LEED credentials.
A LEED accreditation indicates expertise in the current criteria for sustainable design, construction, and operations.
As a LEED specialist, demonstrate your expertise, background, and reliability in the green building industry.
There are two LEED certifications available:
- LEED Green Associate
This certificate demonstrates a solid understanding of green building practices and is ideal for individuals who are brand-new to green construction.
- LEED AP with Specialty
This advanced LEED certification requires knowledge of green construction and the LEED grading system. It is ideal for individuals who are actively working on LEED and green building initiatives.
6. National Association of Safety Professionals (NASP) Certifications
The National Association of Safety Professionals gives this certificate to those who have a thorough understanding of all applicable regulations for construction sites, general industry, municipalities, and federal government workplaces where construction may take place.
The NASP offers several certificates that are appropriate for you if you want to work as a safety specialist for your firm.
You’ll be able to confidently develop safety programs for your entire business, job site safety standards, and safety plans.
7. American Institute of Constructors (AIC)
The Associate Constructor (AC) and Certified Professional Contractor are two different certificates that the AIC offers to prospective contractors and subcontractors.
The first level of this certificate program, the AC certification, is the best fit for recent construction management graduate degree grads.
Subcontractors holding this qualification adhere to the AIC code of ethics to maintain industry professionalism.
Passing a 300-question multiple-choice exam and renewal every two years are prerequisites for completing the program.
The second and top level of the AIC certification program is Certified Professional Contractor.
For those with an AC certification and at least eight years of project experience, this credential is ideal.
A 175-question, multiple-choice exam must be passed to complete the program, and renewal is required every two years.
8. Project Management Professional (PMP)
Six areas are the focus of this certification program and they include starting the project, planning the project, carrying it out, overseeing its completion, and professional and social responsibility.
A bachelor’s degree, at least 36 months of project experience, and 35 hours of project management training are required for program completion.
This certificate needs to be renewed every three years and you must pass a written test.
9. The Federal Acquisition Certification in Contracting (FAC-C) Program
For subcontractors working for the federal government who conduct contracting and acquisition activities, this certification program has various levels.
The curriculum exhibits the general education, training, and experience required to carry out contracting duties for federal agencies.
Each level of the program requires a bachelor’s degree, course completion, and one to four years of contract job experience.
10. National Institute for Certification in Engineering Technologies (NICET)
Employers and clients can validate an employee’s competence and performance with NICET certificates.
This institute offers two different types of certifications: programs for technicians and programs for technologists.
The testing and inspection of transportation, electrical power, fire safety, and security systems are the main topics of the technician certification program.
A four-year degree in engineering technology and supporting paperwork is required for this technologist certificate.
11. Building Performance Institute (BPI) Certification
This accreditation for contractors in home performance acknowledges competence in home energy concepts.
BPI-certified specialists can carry out diagnostic testing in a house to make sure that the systems are functional and that the residents are in a safe environment.
Numerous courses address home inspection, including ductwork, energy usage, structural integrity, and thermal assessment.
The frequency of renewal varies according to the course, however, it can be every three to nine years.
12. Certified Planning & Scheduling Professional (PSP)
An individual who has experience in project management, planning, developing, monitoring, updating, forecasting, and schedule analysis is known as a Certified PSP.
For this certification, you need to have worked in the industry for at least eight years, follow the Association for the Advancement of Cost Engineering’s code of conduct, and pass a written test.
13. Project Risk Management Professional (PRMP)
Individuals who establish and carry out risk management plans that conform with project or objective requirements are known as PRMPs.
For this certification, you must have at least eight years of relevant experience, follow the Association for the Advancement of Cost Engineering’s code of conduct, and pass a written test.
14. Certified Electrical Contractor
This certification is attained by master electricians as the last stage of the general licensing procedure.
The Master Electrician exam must be passed, along with at least two years of experience working as a journeyman electrician.
State-specific certification requirements differ, but most electrical subcontractors renew their credentials every two to three years at the very least.
15. Construction Management Association of America (CMAA) – Certified Construction Manager (CCM)
The CMAA designated an independent administrative body to oversee the construction management certification credentials to maintain the CCM certification credentials as meaningful and practical as possible.
Construction management experts who serve on the Board of Governors, which oversees the organization, are in charge of developing the policies and procedures that affect the standards for professional credentials.
The CCM validates a person’s proficiency in construction project management, planning, and design. The certificate also needs to be renewed every three years and pass a written test.
A four-year bachelor’s degree and four or more years of experience in construction management and experience are the requirements for the CCM certification.
Subcontractor Licensing Information
State-by-state variations are noticeable in the licensing requirements for subcontractors but most subcontractors must have and maintain a license to operate.
Some states are much more liberal when it comes to licensing subcontractors, thereby leaving it up to local governments.
Usually, these subcontractors need licenses:
- Water, sewer, and gas plumbers
- Electricians
- HVAC technicians
- Mold, asbestos, and hazardous waste contractors
Some states specify project value thresholds to evaluate whether a license is necessary, just like with general contractor’s licenses.
Regardless of the license, getting licensed in many states is required to obtain subcontractor liability insurance.
State-by-state: Subcontractor Licensing, Credentialing, And Certification Information
The conditions for obtaining a subcontractor’s license in each state and the penalties for operating without proper authorization are listed below.
Alabama
The Alabama Licensing Board for General Contractors is responsible for Alabama’s contractor licensing program.
This 1935-founded body sets licensing regulations, manages more than 8,000 state-licensed contractors, and gives out trade tests.
With every project worth more than $50,000, subcontractors must also have a license when working for general contractors.
There are various license classes for subcontractors like carpentry, masonry, and what the state refers to as specialty construction, such as electrical and mechanical.
Penalties
Alabama has quite severe penalties for subcontractors operating without a license. According to Alabama Code 34-8-6, working without a license or with a license that has been suspended or revoked is a Class A Misdemeanor.
Even worse, unlicensed subcontractors engaged in projects requiring licenses have little legal remedy, because they are ineligible to make a claim.
Alaska
Contractor licensing in Alaska is governed by the Division of Corporations, Business, and Professional Licensing of the Department of Commerce, Community, and Economic Development.
Subcontractors must get a Residential Contractor Endorsement if they supervise the building of new homes or undertake residential remodeling projects that cost more than 25% of the home’s worth.
In essence, subcontractors must have a specialty license with the appropriate trade endorsements.
Contractors in the fields of acoustical, welding, painting, thermal insulation, masonry, and plaster are a few instances of trade classifications.
Penalties
For a first infraction, there is a $1,000 civil penalty, while for each subsequent offense, there is a $1,500 fine.
And to make matters worse, each day counts as a separate infraction, so going two days without a license may cost you $2,000 to $3,000.
However, because a license is not expressly required by Alaska’s mechanics lien legislation, unlicensed contractors can frequently file liens for non-payment.
Arizona
The Arizona Registrar of Contractors (ROC) is responsible for managing the state’s licensing, testing, and trade standards.
For subcontractors in the state, the ROC conducts exams, establishes industry standards, and manages complaints and investigations.
All subcontractors in Arizona must be licensed if they are working on a project worth more than $1,000.
The state provides dual licenses that cover both types of work in addition to separate licenses for residential and commercial activities.
For their respective businesses and trades, general contractors and subcontractors both require the proper licensing classes.
There are several license categories, such as general residential contractor, general commercial contractor, carpenter, fire protection systems contractor, plumber, and roofer.
Penalties
Unlicensed contracting in Arizona is a Class 1 Misdemeanor, which carries a maximum six-month prison sentence and an 83 percent surcharge.
For a first infraction, the minimum fine is $1,000 with an additional 83 percent fee.
Subcontractors working in areas where a license is required are not protected by Arizona’s mechanics lien laws.
Arkansas
The Arkansas Contractors Licensing Board is responsible for issuing licenses to subcontractors in the state.
The Residential Contractors Committee and the Contractors Licensing Board are the two organizations in charge of residential contractor licensing and commercial contractor licensing, respectively.
You can perform work for a licensed contractor as a subcontractor without having your license with you.
But you will need to submit an application for a Home Improvement License for your particular trade if the prime contractor does not possess an Arkansas contractor’s license.
Penalties
In Arkansas, working without a license in an area where one is necessary is a misdemeanor. The penalty is a fine of between $100 and $200 for each offense, and each day constitutes a new offense.
California
The Contractor State Licensing Board is responsible for granting contractor licenses in California (CSLB).
The CSLB has the power to create trade standards, provide licenses, examine complaints, and look into unlicensed contractors and unethical business activities since 1929.
With just a few exceptions, all contractors working on projects costing more than $500 are required to have licenses.
Three main categories can be found:
- Class A for Licenses in General Engineering
- Class B for Building General Permit
- Class C for Specialty Trades and Subcontractors
Penalties
Working without a license is subject to several penalties in California which may range from $200 to $5,000.
Without a license, it is against the law to contract in California, and you could be charged with a misdemeanor punishable by up to First-time offenders facing a $5,000 fine and six months in prison.
A mandatory 90-day jail sentence and a fine of up to $5,000 and 20% of the contract price are the consequences for a second conviction.
Working in California on a project worth more than $500 without a license results in the loss of your rights under the state’s mechanics lien laws.
Colorado
In Colorado, there isn’t a contractor licensing board or state license because the licensing of subcontractors is handled at the local level.
To obtain their permits, Denver contractors must go through the Community Planning and Development department.
But the Department of Regulatory Agencies does need state-issued licenses for plumbing and electrical subcontractors.
Penalties
In Colorado, the first offense of performing plumbing or electrical work without a license is a Class 2 misdemeanor and carries a 3–12 month prison sentence and a $250–$1,000 fine.
A second offense is a Class 6 felony that carries a penalty of between $1,000 and $10,000 in fines or 12 to 18 months in prison.
Unlicensed subcontractors operating in jurisdictions that do require licenses may also be subject to fines and penalties.
Connecticut
In Connecticut, large contractors may participate in both private and public projects, while, minor contractors also referred to as home improvement contractors work on single-family homes and modest multi-family buildings.
The state’s Department of Consumer Protection requires all subcontractors, big and small, to register their companies.
Certain licenses are required for specialty contractors including plumbers, electricians, house inspectors, and sheet metal workers.
Penalties
If you violate Connecticut’s contracting laws without the necessary license, the Department of Consumer Protection may take legal action against you.
The first offense carries a $1,000 fine, while the second and third offenses carry fines of up to $1,500 each.
Delaware
Before entering into a contract, subcontractors must register the company with the Division of Revenue.
To work in Delaware, specialty trades like electrical, plumbing, and HVAC-refrigeration do need specific licenses.
These trades require licenses, which are issued by the Delaware Department of Professional Regulation.
Penalties
Fines and penalties for performing work without a license are also local issues because licensing is a municipal concern.
The mechanics’ lien laws in Delaware, however, do not require lien claimants to be licensed contractors.
Florida
The Construction Industry Licensing Board is responsible for Florida contractor licensing (CILB) and is in charge of the licensing and control of the building sector.
The CILB conducts hearings, investigations, and reviews applications as well as disciplinary matters.
Nearly all subcontractors in the state of Florida are required to have a license, which is of two types: registered and certified.
Subcontractors who are registered may operate in particular local jurisdictions and through the state, certified contractors may operate.
General contractors can obtain Division I certification in Florida while subcontractors are certified under Division II.
By obtaining a Certificate of Competency from the regional licensing office, registered subcontractors can avoid the examination.
Penalties
First-degree misdemeanor unlicensed contracting is penalized by up to a year in jail or probation.
If you commit another crime, you might be charged with a third-degree felony, which carries a possible 5-year prison sentence as well as up to $10,000 in fines.
Working without a license on a job when one is required carries civil and legal consequences in addition to losing your Florida mechanics lien rights.
You might be imprisoned, destitute, and owe money to the government.
Georgia
The Georgia State Licensing Board for Residential and General Contractors is responsible for issuing licenses to Georgia contractors.
Georgia requires that all subcontractors who work on projects costing more than $2,500 have a license.
Penalties
Georgia does not allow anybody to undertake residential or commercial contracting work worth more than $2,500 without a license, but the associated criminal and civil consequences are unclear.
The contract will not be enforceable, however, if it exceeds $2,500 in unlicensed contracting.
There will be no litigation allowed because the contract’s terms and payments are invalid, and you will lose your right to sue.
Hawaii
Contractor licensing in Hawaii is governed by the Department of Commerce and Consumer Affairs Professional and Vocational Licensing Board.
In Hawaii, a license is required for subcontractors who work on projects that cost more than $1,000 or call for a building permit.
Three different licenses are available:
- Class A for engineering contractors
- Class B for general contractors
- Class C for Specialty and subcontractor
Penalties
Unlicensed contracting work is a misdemeanor in Hawaii and although the consequences aren’t made apparent, working without a license may result in fines or jail time.
Idaho
To work on projects worth more than $2,000, a subcontractor must register their company with the Idaho Contractors Board.
A state-issued license is also necessary for anyone working as an electrical, HVAC, or plumbing subcontractor.
Working as a construction manager and undertaking public works projects both necessitate particular licensing.
Penalties
Subcontractors who do plumbing, HVAC, or electrical work without a license are liable to civil fines, according to the Division of Building.
Illinois
Most of the licensing in Illinois, except plumbing and roofing, is a local issue.
While roofing is the responsibility of the Department of Financial and Professional Regulation, a plumbing license is an issue for the Department of Health.
The Department of Building and Permits is responsible for licensing in Aurora, Illinois.
The license requirements for general contractors, subcontractors, and specialty trades should be confirmed with each specific municipality.
Penalties
Most of the time, operating where a license is necessary is penalized by civil fines levied by the specific municipality.
According to the Illinois Roofing Industry Licensing Act, roofing contractors who work without a license might be fined up to $10,000.
Indiana
Indiana only mandates the possession of a state-issued license for plumbing subcontractors, who would need to contact the Indiana Professional Licensing Agency.
Every county, city, and township must decide on its licensing policies for any other licenses.
For information on requirements, general contractors, subcontractors, and specialty trades in Indianapolis contact the Department of Business and Neighborhood Services, and in Fort Wayne visit the website of the Allen County Building Department.
Penalties
In Indiana, individual licensing municipalities are typically responsible for the penalties associated with unlicensed contracting work.
However, according to Indiana law, unlicensed contractors could be able to file mechanics liens.
Iowa
All subcontractors in Iowa who do more than $2,000 worth of work in a calendar year are required to register their company with the Division of Labor.
The licensure of mechanical, plumbing, HVAC, refrigeration, sheet metal, and hydronic subcontractors is governed by the Department of Health’s Iowa Plumbing and Mechanical Systems Board.
Penalties
In Iowa, sanctions for unregistered subcontractors begin with $500 fines but can reach $5,000 for subsequent offenses.
Unregistered subcontractors do have rights to their payments, while a license is not required to file a mechanics lien in Iowa.
Kansas
Except for well drillers and asbestos abatement contractors, no state license is needed for subcontractors.
For their license requirements, both well drillers and abatement subcontractors must get in touch with the Department of Health and Environment.
Penalties
Most of the time, the individual licensing municipalities decide what punishments to impose for unauthorized contracting.
A subcontractor is not required to have a license to use their lien rights under Kansas’s mechanics lien rules when there are payment problems.
Kentucky
Kentucky only needs electrical, plumbing, and HVAC contractor licenses at the state level, and the Department of Housing, Buildings, and Construction is responsible for all of them.
Local towns are in charge of the general contractor, subcontractor, and specialty licenses.
For license requirements, subcontractors in the Bowling Green area must go via the Bowling Green-Warren County Contractors Licensing Board.
Penalties
Local governments in Kentucky set vague penalties for performing work without a license including the state’s punishments for unlicensed electricians or plumbers.
However, under Kentucky mechanics, all contractors have rights independent of licensure but to file a mechanics lien, design professionals do require a license.
Louisiana
The Louisiana State Licensing Board for Contractors is responsible for Louisiana’s contractor licensing program (LSLBC).
The purpose of the board, which was established in 1956, is to safeguard customers from dishonest or fraudulent practices while fostering the integrity of the construction sector.
For improvements costing more than $75,000, a residential license is necessary while a commercial license is necessary for initiatives costing more than $50,000.
For jobs costing more than $7,500, subcontractors must be licensed, unless they are working with mold or dangerous materials.
When the overall project cost is between $7,500 and $75,000, home improvement subcontractors must just register their firm with the state LSLBC.
Penalties
In Louisiana, performing work without a license is a misdemeanor that requires a fine of up to $500 per day for violation, three months in jail, or both.
In Louisiana, unlicensed subcontractors do have the right to mechanics liens, but there are several restrictions.
Maine
It is the responsibility of individual municipalities to regulate and license the building industry in Maine.
Except for plumbers and electricians, which are two professions that the state’s Department of Regulatory Licensing and Permitting does regulate.
However, there is one requirement that every subcontractor must go to a written contract is necessary for any project with a cost of more than $3,000.
Penalties
Unlicensed subcontractors do have access to their cash since Maine has no licensing requirements for mechanics’ lien rights.
However, they might be subject to fines if the state mandates a license.
Maryland
In Maryland, general contractors are not required to have a license to build new homes, but they must register their company with the Office of the Attorney General’s Home Builder Registration Unit.
Subcontractors working on homes must be licensed by the Maryland Home Improvement Commission.
The Maryland Department of Labor is the place to go to apply for a license if you are a plumber, HVAC-R technician, or electrician.
Penalties
In Maryland, it is illegal to work as an unlicensed subcontractor in any situation where one is necessary.
The first violation carries a maximum $1,000 fine and 30 days in jail and can increase to a $5,000 maximum fine and two years in prison for subsequent violations.
In addition, unlicensed subcontractors can file mechanical liens in cases of payment disagreements.
Massachusetts
Massachusetts has various licensing agencies and registries, and understanding their requirements may be challenging.
The Office of Public Safety and Inspections’ Construction Supervisor License (CSL) is the Massachusetts equivalent of a general contractor’s license.
The project supervisory party must be a registered design professional (RDP), such as an engineer or architect, for projects involving more than 35,000 cubic feet of enclosed space.
The Board of State Examiners of Electricians will provide licenses to electricians and the Board of State Examiners of Plumbers and Gas Fitters for plumbers.
The Office of Public Safety and Inspections will be the first stop for HVAC and refrigeration technicians.
Penalties
In Massachusetts, you must be certain that you have the necessary permits, as the state does not tolerate contracting without a license.
Even if you failed to renew your license, working without it is punishable by a $5,000 fine and up to two years in jail.
Massachusetts mechanics lien laws do not specify any particular license requirements but if you lack the necessary verification, the licensing and registry organizations may penalize you.
Michigan
The Michigan Department of Licensing and Regulatory Affairs administers the majority of Michigan’s licensing requirements (LARA).
It is in charge of regulating general contractor and specialty trade licensure, along with nearly all other professions in the state.
Both a Residential Builders license and a Maintenance and Alterations Contractors license are necessary for general contractors in Michigan.
In Michigan, almost all subcontractors and specialty tradesmen are required to be licensed.
The Bureau of Construction Codes’ Electrical Division is where electrical subcontractors must apply for a license.
The BCC’s Mechanical Division handles matters related to HVAC licenses and for plumbers, it’s the BCC’s Plumbing Division.
Penalties
Operating without a license where one is required is a misdemeanor, as per Michigan’s Occupational Code.
It is punishable by a fine of at least $5,000, a year in jail, or both. The fine remains the same for successive offenses, but the maximum jail term is now two years.
The regulations governing mechanics liens in Michigan do not give you any protection if you are operating as an unlicensed subcontractor on a home job.
Minnesota
The Minnesota Department of Labor and Industry is responsible for licensing (DLI).
Commercial contractors are exempt from license requirements but must register with the Contractor Registration Program.
A Residential Building Contracting license from the DLI is also required if you’re a general contractor working on residential construction or remodeling projects.
In Minnesota, residential building contractors who generate less than $15,000 in gross revenue annually are exempt from licensing requirements if they possess a certificate of exemption.
If a subcontractor is working in two or more of the following categories, they must possess a residential building contracting license.
The DLI requires separate licenses for electrical and plumbing contractors, whereas HVAC mechanics are not subject to state regulation.
Penalties
In Minnesota, unlicensed subcontractors who work without the necessary licenses risk being charged with a crime.
Working without a license when the state mandates one means you lose your ability to file a lawsuit or obtain a mechanics lien.
However, Minnesota law does grant lien rights to subcontractors who are not required by the state to obtain a license.
Mississippi
The Mississippi State Board of Contractors is responsible for issuing licenses for subcontractors.
On commercial projects costing more than $50,000, all subcontractors and contractors must be licensed.
A license is also required for residential subcontractors who conduct new construction above $50,000, remodeling over $10,000, or roofing over $10,000.
On home projects costing less than $10,000, electrical, plumbing, or HVAC subcontractors are not required to have a state license but may still be subject to local laws.
Penalties
Mississippi makes it apparent that unlicensed contracting is against the law, even though the state is vague regarding the consequences.
Furthermore, Mississippi’s mechanics lien rules grant no rights to unlicensed subcontractors.
Missouri
General contractor licenses are not subject to any state-imposed limitations in Missouri because counties and municipalities are responsible for most licensing regulations.
Municipalities in Locla are in charge of controlling subcontractors and enforcing sanctions for work performed without a license.
Penalties
It is hardly unexpected that Missouri’s mechanics lien laws do not require license ownership given the state’s low licensing regulations.
Montana
When it comes to licensing requirements for subcontractors, Montana is one of the more liberal states.
The Department of Labor and Industry is responsible for all permits that must be obtained following state law (DLI).
Construction contractors in Montana must register their companies with the state’s Construction Contractor Registration Program rather than applying for licenses.
Anyone who alters a building, project, construction, or improvement that is affixed to real estate is required to register.
Penalties
Each instance of failure to register with the registration program is punishable by a $500 fine.
It’s also illegal to carry out plumbing or electrical work without a license and it’s punishable by a least $250 fine, 90 days to one year in jail, or both.
Unlicensed subcontractors do have rights in payment disputes since the Montana mechanics lien legislation does not expressly state that they must hold a license.
Nebraska
In Nebraska, registration regulations predominate over licensing regulations at the state level.
All contractors, including general and subcontractors, who make more than $5,000 per year are required to register their company with the state’s Contractor Registration program.
The Nebraska State Electrical Division in Nebraska requires that electrical subcontractors get licenses that are provided by the state.
For licensing requirements, plumbers, HVAC contractors, and other subcontractors must check with their local governments.
Penalties
A subcontractor may be charged a fine of up to $500 if they are issued a citation for failing to register with the Contractor Registration.
The mechanics’ lien law of Nebraska does not provide any prerequisites for licensure. The basic rule is that unlicensed subcontractors who are involved in a payment dispute are permitted to seek a lien.
Nevada
The Nevada State Contractors Board is in charge of Nevada construction licenses and the board oversees the state’s trade licenses.
Nevada mandates that all contractors possess licenses issued by the state. Class B licenses are recommended for residential general contractors and Class C licenses are needed for subcontractors and specialty trades.
Penalties
Nevada prohibits contracting without a license, so a petty misdemeanor is an initial infraction, a serious misdemeanor is the second offense, and a Class E Felony is created after a third offense.
You won’t be eligible for a Nevada mechanics lien or legal action if you’re obliged to have a license yet operate without one.
New Hampshire
Local counties and municipalities are often responsible for licensing requirements in New Hampshire.
However, the Division of Fire Safety is in charge of licensing HVAC and plumbing subcontractors while the Office of Professional Licensure and Certification is in charge of licensing electrical subcontractors.
Penalties
In New Hampshire, working as an unlicensed electrical and plumbing subcontractor is a misdemeanor.
And in New Hampshire, filing a mechanics lien is not subject to contractor license requirements.
New Jersey
General contractors are not required to have licenses in New Jersey, but they are required to register their enterprises with specific state agencies.
Subcontractors who perform home improvements must register their company with the New Jersey Division of Consumer Affairs.
A subcontractor must hold a home repair contractor license issued by the New Jersey Department of Banking and Insurance if they work on funded home repair contracts.
Subcontractors in the fields of electrical work, plumbing, and HVAC must hold licenses from the New Jersey Division of Consumer Affairs.
Penalties
A civil fine of up to $10,000 for the first violation and up to $20,000 for each consecutive infraction may be imposed for working without registering.
A subcontractor who is not licensed can file a mechanics lien for a payment dispute because there are no licensing requirements in New Jersey.
New Mexico
The New Mexico Regulation and Licensing Department are responsible for professional licensing in the state of New Mexico.
Licensing for contractors and subcontractors is governed by the Construction Industry and Manufactured Housing Division.
Every subcontractor in New Mexico is required to have a license but subcontractors making less than $7,200 annually are an exception to this law and don’t need to be licensed.
Penalties
The penalties for engaging in unauthorized contracting in New Mexico vary according to the project’s worth.
Unlicensed subcontractors risk up to 90 days in jail or a $300–$500 fine for jobs worth less than $5,000.
A fine of up to 10% of the contract’s value and a jail term of up to six months could also be imposed on the subcontractor.
New York
Most license requirements are left up to the cities and counties in New York except for crane operators and subcontractors for asbestos removal licenses which are issued by the Department of Safety and Health.
General contractors, subcontractors, and specialty trades should inquire about required licensure from their local governments.
Any subcontractor who wants to construct, renovate, repair, or make any other changes to a residential building or lot must have a home improvement subcontractor license in New York City.
Penalties
Individual municipalities are also in charge of levies and fines, but using a crane without a permit is against state law and depending on the circumstances, a misdemeanor of Class A or B.
The mechanics’ lien laws in New York include that if you need a license to execute your work and you don’t have it during the project, you have no lien rights.
North Carolina
The North Carolina Licensing Board for General Contractors is responsible for licensing in the state.
There are three types of license restrictions: Limited for projects up to $500k, Intermediate for projects up to $1m, and Unlimited. Each has higher and higher standards.
Subcontractors for electrical, plumbing, HVAC, and fire sprinkler systems also need their licenses.
Subcontractors who work with a licensed general contractor but are not part of those trades do not require licenses.
Penalties
Penalties for contracting without a license may be enforced by the North Carolina Licensing Board for General Contractors.
The consequences could be civil fines, criminal prosecution, or even a court order forbidding the general contractor from going forward and working as a contractor.
North Dakota
The Secretary of State in North Dakota is in charge of general contracting licensing.
All subcontractors working on projects worth more than $4,000 must be licensed in North Dakota. Additionally, separate licenses are needed for electrical and plumbing subcontractors.
Four classes are available for contractors to choose from Class A for projects over $500,000, Class B for $500,000, Class C for projects up to $300,000, and Class D for projects under $100,000.
Penalties
Without a license, a subcontractor is guilty of a Class A misdemeanor in North Dakota.
However, since North Dakota’s mechanics lien legislation does not specifically state that filing a lien requires a license, unlicensed subcontractors can do so.
Ohio
In Ohio, cities and counties are in charge of professional licensing, but professionals in commercial plumbing, HVAC, Hydronics, and electrical work must have a state-issued license.
These permits are regulated by the Ohio Construction Industry Licensing Board.
The license requirements for general contractors, home improvement contractors, and subcontractors must be confirmed with the local municipalities.
Penalties
Unlicensed subcontractors may be subject to daily fines of $1,000 from the OCILB.
However, Ohio’s mechanics lien legislation does not contain any specific licensing requirements, therefore unlicensed subcontractors do generally have rights to pay claims.
Oklahoma
Subcontractors in the fields of electrical, mechanical, plumbing, and roofing are required to have Oklahoma Construction Industries Board licenses that are provided by the state.
County and city standards are managed independently because general contractors in Oklahoma are not required to hold a state license.
Penalties
It is up to each municipality to impose penalties and fines, and in Oklahoma, contracting without a license is a misdemeanor.
Unlicensed subcontractors in Oklahoma do have rights in a payment dispute because there are no licensing requirements for submitting a mechanics lien.
Oregon
The Oregon Construction Contractors Board is responsible for issuing licenses in Oregon.
Anyone engaged in construction work including improvements and real property for hire must have a license.
This includes handyman services, house inspections, and contractors for carpentry, electrical, plumbing, and HVAC work.
Penalties
A first violation of contracting without a license in Oregon carries a $1,000 fine. This fee might increase to $5,000 if the property owner complains about the damage.
If you’re a repeat offender, the fines might also reach $5,000 and a $500 fine might be imposed just for placing an unlicensed bid.
A mechanics lien cannot be filed in Oregon by unlicensed subcontractors, in addition to sanctions.
Pennsylvania
Only crane operators and asbestos and lead removal contractors in Pennsylvania are required to hold licenses, according to the Department of Labor and Industry.
All other subcontractors for house improvements must register with the state attorney general’s office.
In addition to those licenses and the registration, subcontractors must inquire about licensing requirements from the local governments.
Philadelphia mandates the possession of a license for every subcontractor engaged in building, demolition, or repair.
Penalties
Municipalities are in charge of enforcing penalties and fines for illegal work, which can differ from one place to another.
However, working without being authorized by the Attorney General’s Office is a crime that carries a $1,000 or higher penalty.
Since a license is not expressly required by Pennsylvania’s mechanics lien statute, unlicensed subcontractors do have options in the event of non-payment.
Rhode Island
In Rhode Island, the Contractors Registration and Licensing Board must receive registration information from all subcontractors.
The Contractors Registration and Licensing Board in Rhode Island do require genuine licenses for commercial roofing contractors, well drillers, and home inspectors.
Electrical subcontractors must have licenses, which are issued by the Department of Workforce Regulation and Safety.
Penalties
A $5,000 fine is possible for non-registered contractors after their first infraction and the fine for each subsequent offense may reach $10,000.
Under Rhode Island’s mechanics lien legislation, an unregistered contractor has no right to file a lien claim in the event of a payment dispute.
South Carolina
The South Carolina Contractor’s Licensing Board is responsible for issuing subcontractor licenses in South Carolina.
The board’s job is to safeguard the general public’s health, safety, and welfare by controlling the hiring of building contractors.
In South Carolina, general and mechanical contractors must be licensed to conduct work that costs more than $5,000.
For licensure and registration, subcontractors who only do residential work can get in touch with the Residential Builders Commission.
Penalties
A second offense in South Carolina can result in you appearing before the board and can result in fines of up to $250 for contracting without the proper license.
You also lose your right to a mechanic’s lien if you perform work without a license when one is necessary.
South Dakota
Municipalities are responsible for South Dakota licensing, but the Department of Labor and Regulation issues licenses to electrical and plumbing subcontractors.
More trades do not require licenses at the state level, but all subcontractors working on building projects must register with the Department of Revenue for a South Dakota Contractor’s Tax License.
Subcontractors must inquire locally about their licensing requirements as each city and municipality is responsible for its licensing policies.
Penalties
Most sanctions are imposed at the municipalities’ discretion and differ from city to city but operating without a contractor’s tax license isn’t a crime.
The maximum fine for this Class 1 misdemeanor is $1,000, one year in jail, or both.
If the business is kept open after being notified, it becomes a felony punishable by a $4,000 fine or two years in prison.
South Dakota’s mechanics lien laws do not impose any licensing requirements, therefore unlicensed subcontractors do have the right to liens in the event of non-payment.
Tennessee
The Tennessee Department of Licensing and Insurance, Board for Licensing Contractors, is responsible for issuing licenses in Tennessee.
Before submitting an offer for the project or working directly with the owner, general contractors must have a license from the state.
When a project’s value exceeds $25,000, subcontractors must get licenses before signing contracts with a general contractor.
When a project costs more than $25,000, subcontractors who work in the electrical, mechanical, plumbing, HVAC, and roofing fields must have licenses.
If they are working for a licensed contractor, subcontractors who do drywall, painting, landscaping, and carpentry are not required to obtain a license.
Penalties
In Tennessee, subcontractors who are found working without a license won’t be able to get one for six months.
Hiring unlicensed contractors for jobs costing more than $25,000 is a Class A misdemeanor.
Additionally, there are charges for performing work without a license that varies from $50 to $1,000.
Unlicensed subcontractors working on residential, single-family home renovation projects in Tennessee forfeit their opportunity to claim under the state’s mechanics lien laws.
Texas
General contractors are exempt from holding a license issued by the state but local governments are responsible for granting subcontractors their licenses.
While most licensing is handled by localities, licenses for electricians, HVAC technicians, and plumbers are governed by the Texas Department of Licensing & Regulation.
You’ll need to verify with your local licensing agency because communities in Texas create their license standards.
Penalties
While there are consequences for operating without a state-required license, penalties and fines are also the responsibility of the municipality.
Without a valid Texas license, HVAC mechanics are guilty of a Class B misdemeanor that carries a maximum one-year jail sentence and a $1,000 to $3,500 fine.
Unlicensed subcontractors do typically have mechanics lien rights in Texas, notwithstanding the high penalty.
Utah
The Utah Division of Occupational and Professional Licensing is responsible for issuing contracting licenses in Utah.
There are various types of general contractor licenses, including general and residential electrical and general and residential plumbing.
Before submitting their licensing application, subcontractors must select one of the specialty trades.
Penalties
The first crime of contracting without a license is penalized by a fine of up to $1,000, according to Utah State.
For a second offense, the penalty rises to $2,000 and the maximum fine for a subsequent infraction is $2,000 per day.
Under Utah’s mechanics lien legislation, there are no particular licensing requirements, so unlicensed subcontractors still generally have recourse for payment disputes
Vermont
Certain specialized crafts, including plumbing and electrical subcontractors, which are both governed by the Division of Fire Safety, do require state licenses.
Since general contractors and other subcontractors do not need a state-issued license in Vermont, you should check to see if one is required in your area.
However, even the larger municipalities don’t exercise much caution when it comes to requiring general or subcontractor licenses.
Penalties
The communities in Vermont are in charge of deciding what penalties there will be for working without a license.
The Division of Fire Safety’s regulations, however, state that performing electrical or plumbing work without a license is subject to a maximum $500 fine.
Virginia
The Department of Professional and Occupational Regulation Board for Contractors oversees licensing in Virginia.
Virginia requires general contractors and subcontractors to be licensed at the state level.
Subcontractors must select their specialty and license level when applying for a license.
Contractors with Class A licenses may work on projects worth up to $10,000 and up to $150,000 annually.
Work on projects is permitted with Class B permits up to $120,000 with an annual cap of $750,000.
Work on projects with a Class C license is limitless.
Penalties
Contracting in Virginia without the appropriate license carries a fine and the maximum fine per day of violation is $500.
Additionally, it is a Class 1 misdemeanor, punishable by up to a year in jail.
For the right to a mechanic’s lien, a contractor needs to be licensed and the contractors above them in the chain must be licensed.
On the lien, the filing contractor must also provide the license number, along with the date it was issued and its expiration date.
Washington
All subcontractors are required to register with the Washington State Department of Labor and Industries (DLI).
The DLI also requires both general contractors and specialized contractors to register.
Plumbing, electrical, and asbestos subcontractors must have state-level licenses from DLI.
Penalties
It is a gross misdemeanor in Washington to undertake contracting work without registering with the DLI.
When it comes to Washington’s mechanics’ lien laws, unlicensed subcontractors forfeit their lien rights.
West Virginia
The Contractor Licensing Board of the Division of Labor is in charge of licensing subcontractors in West Virginia.
On projects costing more than $2,500, the state mandates that general contractors, specialty contractors, and subcontractors hold a valid contractors license.
Penalties
The Licensing Board may levy fines between $200 and $1,000 for anyone contracting without a license.
For a second offense, there is a $500 minimum fine and a $5,000 maximum fine, as well as a six-month maximum jail sentence.
A third infraction will incur a fine of between $1,000 and $10,000, as well as a 1-year sentence in jail.
However, West Virginia grants mechanics lien rights to unlicensed contractors.
Wisconsin
The State of Wisconsin Department of Safety and Professional Services oversees subcontractor licensing in Wisconsin.
Anyone working on 1-2 family homes, undertaking projects worth more than $1,000, or obtaining a building permit must have a Dwelling Contractor Qualifier license, according to the Department of Safety and Professional Services.
Additionally, separate licenses are required for electrical, plumbing, HVAC, and asbestos abatement subcontractors.
Penalties
While the consequences of operating without a license in Wisconsin aren’t apparent, you can anticipate fines and possibly even jail time.
Unlicensed subcontractors do, however, retain the ability to file a mechanics lien in Wisconsin.
Wyoming
In Wyoming, only electrical subcontractors are subject to state-level licensing, which is administered by the Department of Fire Prevention and Electrical Safety.
The many towns throughout the state are in charge of all other licensing.
Penalties
Penalties and fines are under the jurisdiction of the municipalities because the state is only nominally responsible for licensing.
Unlicensed subcontractors in Wyoming do have the right to mechanics liens in terms of lien rights.
FAQ
How do I get a contractors license with no experience?
Proof of workers’ compensation insurance.
Proof of general liability insurance.
Be either 18 or 21 years old.
Submit criminal background checks.
Surety bond.
Federal Tax ID or SSN.
Financial statements.
Register your business with the state.
What is the easiest contractors license to get?
An RMO or RME is one of the most popular ways for people without expertise to obtain a contractor license. The Responsible Managing Officer is referred to as RMO.
What counts as experience for contractor license?
Only experience at the journey level or as a foreman, supervisory employee, contractor, or owner-builder qualifies for experience credit.
What is a c61 license?
29 separate trade classes that do not fall within General B, General A, or C- Specialty Classifications are together referred to as C-61 Contractor Licenses. The CSLB now offers these classifications: Awnings (D-3) (D-3) Systematic central vacuums (D-4) Services Related to Concrete (D-6).
How can I learn construction?
Join as an apprentice and benefit from both classroom instruction and on-the-job training. Enroll in post-secondary education at a university, community college, or technical school to pursue your chosen construction-related vocation.
How long does it take to get a Florida Contractors license?
To sit for the contractor exam and submit an application for a license to work as a contractor in Florida, you must have at least 4 years of experience at the journeyman level. If you lack experience, join a work crew for a contractor and put in at least four years of service.
How much is it to get a contractors license in Florida?
For a one-time price of $299, Florida Contractor Licensing LLC can help you complete the requirements for a Florida contractor license. The preparation and support of the construction license application are part of this affordable option.
What is a CBC license in Florida?
A Florida building contractor (CBC) is a contractor whose services are restricted to the construction of homes and businesses that are no taller than three stories, including remodeling, rehabilitation, and repair.
How hard is the Michigan builders license test?
Never give contractors any items or equipment that could subsequently break down or injure someone. It makes sense that you could think using your 7-foot ladder on loan to check a light bulb is entirely safe.
Conclusion
Subcontractors with credentials such as certifications and licenses improve safety conditions on construction sites and enable businesses to take on specialized projects.
Customers also like subcontractors that have certificates since they demonstrate your dedication to your work and your ability to deliver high-quality services.
And if your state requires a license for your trade, ensure you obtain one before you begin working or even submitting a bid.
Hope this article has helped with this subcontractor licensing, credentialing, and certification information.
