All states require building contractors to be licensed in order to protect property owners. The process tests for competency and seeks to screen out those who might be dishonest. Therefore, a valid license, while not proof of honesty, integrity, or quality, is the first sign that the contractor might be one that you want to hire.

An additional reason to hire only licensed contractors, is that some states have programs for dispute resolution, or funds to aid in resolving disputes. It would be wise to avail oneself to these, and they only apply to those who work with licensed contractors States differ in the requirements for getting a contractor license, and for the differing licenses needed to do different jobs. You can find out the requirements in your state by contacting your licensing board.

As stated, different licenses are needed for different aspects on construction. The individual who works with you to oversee the job is the general contractor (who also hires subcontractors, buys material, etc). General contractors do need to be licensed, but this license does not give them the ability or right to do all jobs on the construction site. You should know what your general contractor’s license covers.

Finally, most states provide numerous specific contractor licenses, each for a specific job. These are given when the contractor can demonstrate proficiency in the given task, such as electrical work, plumbing, roofing, etc. General contractor’s hire subcontractors to do these jobs, when they do not have the appropriate license themselves.