The DC Department of Licensing and Consumer Protection licenses a variety of different contractor classifications. Each classification shares similar steps with a few minor differences. This article will outline the licensing process for the classifications that require a surety bond to get licensed.
These licenses include:
- Home Improvement contractor
- Electrical contractor
- Refrigeration and air conditioning contractor
- Elevator contractor
- Plumbing and gasfitting contractor
All of these licenses, except for the Home Improvement license, are considered trade licenses.
General contractors and construction manager licenses do not require a license surety bond, however depending on the project, they may require a performance bond. We'll cover this in the bonding section.
Getting a Contractor License in the District of Columbia
Home Improvement Contractor
A home improvement contractor performs new construction and renovation work on residential properties.
Step 1: Determine Business Structure
Determine how you will structure your business:
- A sole proprietor or conducting business as an individual
- Corporation or Limited Liability Company (LLC)
If you are running your construction business as a business entity, you will need to register your business with the Office of Tax and Revenue.
If you plan on using a trade name (often called a doing business as name) you must register this name with the Office of Tax and Revenue.
Business Location
You can run your contracting business out of your home. If you do you'll need to provide a Home Occupation permit.
If you're the tenant of your primary residence, you must provide proof of residence.
If your a business entity that owns or leases office space, you must show a Certificate of Occupancy.
Submit Clean Hands Certification
The final step of your business setup is obtaining a "Certificate of Clean Hands." This is a certificate that shows you are in compliance with the financial obligations due to the District. The Office of Tax and Revenue can deny any person or business licenses, contracts, or other service is the amount of tax debt owned is greater than $100.
To obtain your Certificate of Clean Hands:
- You must not own more than $100 in backed fees or taxes
- Be fully registered for all required tax types
- Have submitted all required tax returns
Step 2: Insurance And Bonding
Liability Insurance
Home Improvement contractors are required to secure the following liability insurance minimums:
- A minimum of $50,000 liability insurance for bodily injury or death any any one person in any single accident
- A minimum of $100,000 in aggregate for more than one person in any single accident
- A minimum of $10,000 in property damage for any single accident during the licensing period
Surety Bond Requirement
A surety bond is a type of insurance, but unlike liability insurance which you purchase to protect you and. your business, a surety bond is purchased to protect your customers.
A surety bond, in this case called a contractor license bond, acts as a promise that you will:
- Follow all DC building rules, regulations, and laws
- Complete all projects for your customers according to the contract
- Pay all sales tax required for your business operations
If a contractor purposefully commits and fraudulent action causing their customer financial harm, the customer can make a claim against the bond.
If the claim is deemed valid, it will pay the customer for damages committed by the contractor.
Click here to learn the details of the Washington DC contractor bond.
How Much Does a Surety Bond Cost
The cost of a Washington DC contractor bond is determined similar to normal insurance.
The surety, insurance company, will determine a rate based on the applicant and this rate multiplied by the bond amount is the price.
We, at Surety Bonds Direct, are a specialized surety agency. We work with the highest rated sureties to find our customers the lowest prices.
For all Washington DC contractors bonds, we've secured low fixed prices with zero credit check.
The prices for the Home Improvement Contractor are:
| Bond Type | Bond Amount | Get Pricing |
|---|---|---|
| Home Improvement Contractor | $25,000 | |
| Electrical Company (regular voltage) | $4,000 | |
| Electrical Master (regular voltage) | $2,000 | |
| Electrical Company (low voltage) | $2,000 | |
| Electrical Master (low voltage) | $1,000 | |
| Elevator Company | $4,000 | |
| Elevator Master | Not Required | |
| Refrigeration and Air Conditioning Company | $5,000 | |
| Refrigeration and Air Conditioning Master | $5,000 | |
| Plumbing and Gasfitting Company | $5,000 | |
| Plumbing and Gasfitting Master | $5,000 |
Step 3 - Background Check
You must submit a criminal history report that is no older than 30 days from your application submit date.
If you're a non-resident, you must obtain a report for your local jurisdiction where you reside.
Step 4 - Salesperson Designation Letter
Each Home Improvement contractors must have at least one Basic Business License for one salesperson.
The Basic Business License requires:
- Social security number or FEIN
- Registration with the Office of Tax and Revenue
- Certificate of Clean Hands
- Photo id
- Affidavit
- Designation letter
- Criminal history report
Step 5 - Apply Online
You can apply online with an application fee of $288.20.
The Home Improvement contractor has a 2 year licensing period at which time you must renew your license.
Contractor Trade Licenses
The trade licenses consist of:
- Electrical contractor
- Refrigeration and air conditioning contractor
- Elevator contractor
- Plumbing and gasfitting contractor
- Asbestos Worker (no bond requirement)
- Steam and Other Operating Engineers (no bond requirement)
The licensing process for the trade classifications are nearly identical.
The licensing process requires:
- Experience requirements
- Examination
- Potentially waiving the exam requirement
- Purchasing insurance and bonding
- Paying application fees
One unique requirement the DC Department of Licensing and Consumer Protection requires is both the business entity and the master level contractor must be bonded.
So, depending on your business structure, you will likely have to purchase two contractor surety bonds before you can have a license issued.
Each trade has the following stages or registrations:
- Apprentice
- Journeyman
- Master
Below I'll highlight the unique requirements for each trade license classification.
Washington DC Electricians
Licenses expire November 30th of odd numbered years.
You must register as either a low voltage (49 volts or below) or a regular voltage electrician. This designation affects the bond amount.
Electrician licenses expire on November 30th of odd numbered years.
| Bond Type | Bond Amount | Get Pricing |
|---|---|---|
| Electrical Company (regular voltage) | $4,000 | Purchase Your Bond Today |
| Electrical Master (regular voltage) | $2,000 | Purchase Your Bond Today |
| Electrical Company (low voltage) | $2,000 | Purchase Your Bond Today |
| Electrical Master (low voltage) | $1,000 | Purchase Your Bond Today |
Journeyman electricians are required to obtain the NEC Code Class Certification within 2 years of licensure.
To waive the exam for the Journeyman registration, you must show completion of a nationally certified apprenticeship program.
To wait the exam for the Master registration, you must show an active state license. If your license is from Virginia or Maryland, you must also show a letter of good standing.
Refrigeration and Air Conditioning
All refrigeration and air conditioning licenses expire on September 30th of even numbered years.
| Bond Type | Bond Amount | Get Pricing |
|---|---|---|
| Refrigeration and Air Conditioning Company | $5,000 | Purchase Your Bond Today |
| Refrigeration and Air Conditioning Master | $5,000 | Purchase Your Bond Today |
Journeyman are required to obtain a CFC Universal certification and journeyman can waive the exam if they complete an apprenticeship program.
Plumbing and Gasfitting
Plumbing and gasfitting licenses expire on March 31st of even numbered years.
| Bond Type | Bond Amount | Get Pricing |
|---|---|---|
| Plumbing and Gasfitting Company | $5,000 | Purchase Your Bond Today |
| Plumbing and Gasfitting Master | $5,000 | Purchase Your Bond Today |
Elevator Contractors
Elevator contractor licenses expire November 30th of odd years.
Inspectors
You can get licensed as an inspector which requires a ASME QE1 certificate. There is no bonding requirement for inspectors.
Mechanics
| Bond Type | Bond Amount | Get Pricing |
|---|---|---|
| Elevator Company | $4,000 | Purchase Your Bond Today |
| Elevator Master | Not Required | Purchase Your Bond Today |
General Contractors
The license process is the same as a Home Improvement license with two differences.
First, general contractors must submit two pre-printed Contracts to show that the contracts used will comply with existing DC Code and Municipal Code regulations.
General contractors are not required to purchase a license bond before a license can be issued.
Depending on the project owner or if a construction project is a right-of-way project, you may need to obtain different types of construction bonds. These are typically:
Surety Bond Direct Is Ready To Help If You Need a DC Contractor Bond
I hope this article made it easier to understand the licensing requirements for Washington DC contractors.
I also hope it helped explain the surety bond requirement. Surety bonds are typically a new concept if this is your first time getting licensed.
If you need to get bonded, we can help manage the process for you and ensure you pay as little as possible.
Remember for all Washington DC contractor bonds, we have already secured low fixed prices with zero credit check. If you have any questions, call a bond specialist and they will help you get the process started over the phone: 1-800-608-9950.
