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| Understanding Contractor Endorsements |
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| What are endorsements? |
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Beginning July 1, 2008 new and renewing licensees will be required to choose from an endorsement system instead of a licensing category. The new licensing endorsement system distinguishes between residential contractors and commercial contractors. Some contractors may be required to have a dual endorsement.
Click here for a side-by-side comparison of all endorsement options.
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| Choosing the right endorsement |
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The licensing endorsements will eventually reflect the type of work the licensee will be allowed to do.
Contractors licensed with a residential endorsement may perform work on the following structure types:
- Residential
- Small commercial
Contractors licensed with a commercial endorsement may perform work on the following structure types:
- Large commercial
- Small commercial
Contractors that will perform work on residential and large commercial structures must obtain a dual endorsement.
Contractors who perform work on only small commercial structures may choose either a residential or a commercial endorsement.
Click here for the definitions of a residential, small commercial or large commercial structure type.
These definitions will change July 1, 2008. It is important to review them. These definitions will assist contractors in choosing which endorsement to become licensed in.
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| When will I choose endorsments |
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Contractors becoming licensed for the first time will be required to choose their endorsement beginning July 1, 2008.
Most existing licensees will choose their endorsement at their renewal time if their renewal is on or after July 1, 2008. All contractors must be transitioned to the new endorsement system by July 1, 2010.
Contractors that make changes to their business entity on or after July 1, 2008 that require the issuance of a new license will be required to choose their endorsement.
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| Residential Endorsements |
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Residential Endorsement Choices, Bond and Insurance (beginning July 1, 2008)
Contractors renewing their license on or after July 1, 2008 will be required to choose an endorsement (and provide the required bond and insurance amounts) from the following:
| Endorsement |
Bond Amount |
Liability Insurance |
| Residential General Contractor |
$20,000 |
$500,000 - per occurrence |
| Residential Specialty Contractor |
$15,000 |
$300,000 - per occurrence |
| Residential Limited Contractor |
$10,000 |
$100,000 - per occurrence |
| Residential Developer |
$20,000 |
$500,000 - per occurrence |
The inspector category is no longer an option. Contractors that were licensed in an inspector category must choose a Residential General Contractor or a Residential Specialty Contractor endorsement.
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| Commercial Endorsements |
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Commercial Endorsement Choices, Bond, Insurance and Experience Requirements (Effective July 1, 2008)
Contractors renewing their license on or after July 1, 2008 will be required to choose an endorsement, provide the required bond and proof of insurance and certify the required amount of experience from the following:
| Endorsement |
Bond Amount |
Liability Insurance |
Experience |
| Commercial General Contractor Level 1 |
$75,000 |
$2 million
aggregate
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8 years |
| Commercial Specialty Contractor Level 1 |
$50,000 |
$1 million
aggregate
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8 years |
| Commercial General Contractor Level 2 |
$20,000 |
$1 million
aggregate
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4 years |
| Commercial Specialty Contractor Level 2 |
$20,000 |
$500,000
per occurrence
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4 years |
| Commercial Developer |
$20,000 |
$500,000
per occurrence
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None |
The inspector category is no longer an option. Contractors that were licensed in an inspector category must choose a Commercial General Contractor (Level 1 or 2) or a Commercial Specialty Contractor (Level 1 or 2) endorsement.
What are the experience requirements?
Commercial contractors choosing a general contractor or specialty contractor (any level) endorsement will be required to certify that one or more "key employees" have the combined years of experience that total to the required amount for the chosen endorsement.
“Key employee” means an owner or employee of a contractor who is a corporate officer, manager, superintendent, foreperson or lead person or any other employee identified by the board by rule.
Endorsement
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Experience Requirement
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Commercial General Contractor Level 1
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8 years
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Commercial Specialty Contractor Level 1
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8 years
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Commercial General Contractor Level 2
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4 years
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Commercial Specialty Contractor Level 2
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4 years
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Commercial Developer
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None
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The following qualifies as experience:
- Contractors may use the number of years working as a licensed contractor, journeyman, foreperson or supervisor or as any other employee engaged in construction work for a licensed contractor.
- Completion of an apprenticeship program may substitute for up to three years of experience.
- A bachelor’s degree in a construction-related field may substitute for up to three years of experience.
- A bachelor’s degree or master’s degree in business, finance or economics may substitute for up to two years of experience.
- An associate’s degree in construction or building management may substitute for up to one year of experience.
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| What is a dual endorsement |
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Contractors performing work on residential and large commercial structure types will be required to have a dual endorsement. Contractors will choose one of the options under the residential endorsements and one of the options under the commercial endorsements.
Two bonds will be required; one in the amount required for the residential endorsement chosen and another for the amount for the commercial endorsement chosen.
Contractors who perform work on only small commercial structures may choose either a residential or a commercial endorsement.
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