Maryland Contractor License Requirements
Every figure below was read off the MHIC or the statute, and the sentence it came from is listed at the bottom of this page. Where a figure could not be verified this page says so rather than showing a number.
What the state requires
- Licence
- Maryland Home Improvement Contractor License
- Issued by
- Maryland Home Improvement Commission, Division of Occupational and Professional Licensing, Maryland Department of LaborMd. Code, Business Regulation, tit. 8 (Home Improvement)
- Exam
- Maryland Home Improvement Commission Contractor examination — 55 questions, minimum 70% correct.PSI
- Exam fee
- $63MHIC's Forms and Fees schedule lists, for an original two-year contractor license: Application Fee $281.25, Guaranty Fund Assessment $100, Processing Fee $22.50, plus $281.25 per each additional company location. The application fee is $281.25, not a whole dollar figure; 281 is the rounded-down integer and the exact amount is in this note. Renewal is $281.25 plus a $175 Guaranty Fund assessment every two years. The PSI exam fee is $63.00, paid separately.
- Application fee
- $281
- Initial licence fee
- No verified figure
- Licence bond
- Not requiredA surety bond is only an alternative for applicants who fail the Commission's financial solvency test: 'If financial solvency is not met, you may obtain a two year $20,000.00 Surety Bond.' An indemnitor meeting the same solvency standard may be used instead. Applicants who satisfy the solvency review post no bond.
- General liability
- $50,000Proof of current $50,000 liability insurance must be filed with both original and renewal applications and must remain in effect at all times; the Commission must be named certificate holder and be given at least 10 days' notice of cancellation.
- Workers compensation
- Not required
- Experience
- 2 yearsAt least two years of experience in home improvement work, construction and/or related education.
- Financial requirement
- Proof of financial solvency based on total assets, liabilities, a full credit report (dated within 90 days) and net worth, judged against the scope and size of the business. Failing that, a two-year $20,000 surety bond or a qualifying indemnitor.
- Continuing education
- No continuing education requiredNo continuing education requirement was stated on the MHIC license requirements, FAQ or forms-and-fees pages read for this record.
- Renewal
- Every 2 years
- NASCLA exam
- Not acceptedMaryland does not appear on NASCLA's list of state agencies accepting the NASCLA Accredited Examination for Commercial General Building Contractors.
What people get wrong
Maryland has no commercial general contractor license. The Division of Occupational and Professional Licensing's own board list runs from Appraisers to Stationary Engineers and contains Home Improvement, Electricians, HVACR and Plumbing but no general or commercial construction contractor board. The MHIC license is the state-level contractor license and it reaches only home improvement performed for a homeowner; commercial construction is left to local permitting and to the separate trade boards. A salesperson license is required for anyone selling home improvements on a contractor's behalf, and a person may represent at most two licensed contractors.
Frequently asked questions
- Do I need a contractor licence in Maryland?
- Yes. Maryland issues a state general contractor licence — Maryland Home Improvement Contractor License — through the Maryland Home Improvement Commission, Division of Occupational and Professional Licensing, Maryland Department of Labor. Maryland has no commercial general contractor license. The Division of Occupational and Professional Licensing's own board list runs from Appraisers to Stationary Engineers and contains Home Improvement, Electricians, HVACR and Plumbing but no general or commercial construction contractor board. The MHIC license is the state-level contractor license and it reaches only home improvement performed for a homeowner; commercial construction is left to local permitting and to the separate trade boards. A salesperson license is required for anyone selling home improvements on a contractor's behalf, and a person may represent at most two licensed contractors.
- Does Maryland accept the NASCLA exam?
- No. Maryland does not appear on NASCLA's list of state agencies accepting the NASCLA Accredited Examination for Commercial General Building Contractors.
Sources
“All applicants must take and pass the licensing exam before they can apply for a license. Contact PSI Examinations. Applicants for a contractor's license must provide proof of at least two years of experience in home improvement work, construction and/or related education.”
https://www.labor.maryland.gov/license/mhic/mhiclicreq.shtml“Applicants and licensed contractors must show proof of current $50,000 liability insurance at the time of application for both original and renewal licenses. This insurance must be in effect at all times.”
https://www.labor.maryland.gov/license/mhic/mhiclicreq.shtml“License Period The license period is two years from the date of issuance of the original license.”
https://www.labor.maryland.gov/license/mhic/mhiclicreq.shtml“Original Contractor License (2-year): Application Fee $281.25; Per Each Additional Company Location $281.25; Guaranty Fund Assessment $100; Processing Fee $22.50”
https://www.labor.maryland.gov/license/mhic/mhicaff.shtml“If financial solvency is not met, you may obtain a two year $20,000.00 Surety Bond (must show person and business name) and be signed by the applicant.”
https://www.labor.maryland.gov/forms/mhicreqsheet.doc“The standard exam fee is $63.00. ... The Contractors' examination consists of 55 questions. ... Candidates must pass the examination with a minimum of 70% correct responses.”
https://www.labor.maryland.gov/license/mhic/mhicexam.shtml“The Commission requires each contractor to show financial solvency because the Guaranty Fund will compensate a homeowner up to $20,000 (or the total amount of payments made on the contract) in the event the contractor performs an unworkmanlike, inadequate, or incomplete home improvement.”
https://www.labor.maryland.gov/license/mhic/mhicfaqlic.shtml“Home Improvement”
https://www.labor.maryland.gov/license/
Then there is the exam
Practise Maryland exam questions free, with explanations that cite the reference book and section.