Minnesota Contractor License Requirements
Every figure below was read off the DLI 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
- Residential Building Contractor (BC); a Residential Remodeler (CR) licence covers existing structures only and a Residential Roofer (RR) licence roofing only
- Issued by
- Minnesota Department of Labor and Industry, Construction Codes and Licensing DivisionMinn. Stat. ch. 326B (326B.805 et seq.)
- Exam
- Qualifying Builder (QB) exam for a residential building contractor licence; Qualifying Remodeler (QC) and Qualifying Roofer (QR) exams for the other two licences. 110 multiple-choice questions, 70% to pass, five and a half hours, open book with the Minnesota State Residential Code 2020 and the DLI reference manual supplied. Available in English and Spanish.state-administered
- Exam fee
- $50The base licence fee is $180 and every applicant also pays a Contractor Recovery Fund fee scaled to gross annual receipts: $320 under $1 million (Tier 1), $420 for $1-5 million (Tier 2), $520 over $5 million (Tier 3). DLI's fee schedule therefore prices a new Tier 1 residential building contractor licence at $500 and renewal at $505 (the extra $5 is the CE fee); Tier 2 is $600 new / $605 renew and Tier 3 is $700 / $705. Late fee $90. The qualifying person's exam is $50.
- Application fee
- $180
- Initial licence fee
- $500
- Licence bond
- Not requiredNo licence bond. DLI states plainly that the Contractor Recovery Fund replaces bonding requirements. A $40,000 surety bond is required only to reinstate a licence after the fund has paid a claim against it.
- General liability
- $100,000Minimum public liability coverage is $100,000 per occurrence, $300,000 aggregate, and $25,000 property damage, covering premises, operations and products, and completed operations. The certificate must be produced and signed by a licensed agent, name DLI as certificate holder, and carry the business name exactly as filed with the Secretary of State. Proof of workers' compensation compliance must be filed on a DLI-approved form.
- Workers compensation
- Required
- Experience
- None requiredThere are no prerequisite experience or educational requirements to sit the residential building contractor, remodeler or roofer exam.
- Financial requirement
- None as such, but the Contractor Recovery Fund fee is tiered on gross annual receipts ($320 / $420 / $520). A contractor with residential gross annual receipts under $15,000 may hold a Certificate of Exemption instead of a licence.
- Continuing education
- 14 hours every two yearsThe qualifying person must complete 14 hours of DLI-approved continuing education every two years to renew the Q registration and with it the company's licence. At least one hour must relate to the Minnesota Energy Code and at least one hour to business management strategies. A Q registration inactive for more than two years forces a retake of the licensing exam.
- Renewal
- Every 2 years
- NASCLA exam
- Not acceptedMinnesota does not appear on NASCLA's list of state agencies accepting the NASCLA Accredited Examination for Commercial General Building Contractors.
What people get wrong
The licence is held by the business, not the individual: the company designates a qualifying person who sits the exam and receives a Q number (QB/QC/QR plus six digits), which is a registration and not a licence and carries the CE. The two expiry dates rarely line up. The trigger is contracting directly with a homeowner in more than one of eight named special skill areas; single-skill specialty contractors are exempt except roofers. Since July 1, 2023 residential solar PV companies must hold a BC or CR licence. Commercial contractors and subcontractors who do not contract with the homeowner do not need this licence but must register under the separate Construction Contractor Registration programme.
Frequently asked questions
- Do I need a contractor licence in Minnesota?
- Yes. Minnesota issues a state general contractor licence — Residential Building Contractor (BC); a Residential Remodeler (CR) licence covers existing structures only and a Residential Roofer (RR) licence roofing only — through the Minnesota Department of Labor and Industry, Construction Codes and Licensing Division. The licence is held by the business, not the individual: the company designates a qualifying person who sits the exam and receives a Q number (QB/QC/QR plus six digits), which is a registration and not a licence and carries the CE. The two expiry dates rarely line up. The trigger is contracting directly with a homeowner in more than one of eight named special skill areas; single-skill specialty contractors are exempt except roofers. Since July 1, 2023 residential solar PV companies must hold a BC or CR licence. Commercial contractors and subcontractors who do not contract with the homeowner do not need this licence but must register under the separate Construction Contractor Registration programme.
- How much continuing education does Minnesota require?
- 14 hours every two years. The qualifying person must complete 14 hours of DLI-approved continuing education every two years to renew the Q registration and with it the company's licence. At least one hour must relate to the Minnesota Energy Code and at least one hour to business management strategies. A Q registration inactive for more than two years forces a retake of the licensing exam.
- Does Minnesota accept the NASCLA exam?
- No. Minnesota does not appear on NASCLA's list of state agencies accepting the NASCLA Accredited Examination for Commercial General Building Contractors.
Sources
“Any individual or company that contracts directly with an owner of residential real estate (one to four units) to provide work in more than one special skill must have a residential building contractor or residential remodeler license.”
https://www.dli.mn.gov/business/residential-contractors/residential-contractor-licensing“The base license fee is $180. An additional fee is required for the Contractor Recovery Fund based on your gross annual receipts. $320 if gross annual receipts are under $1 million $420 if gross annual receipts are between $1 and 5 million $520 if gross annual receipts are over $5 million”
https://www.dli.mn.gov/business/residential-contractors/residential-contractor-licensing“The minimum coverage is $100,000 per occurrence, $300,000 aggregate, and $25,000 in property damage coverage.”
https://www.dli.mn.gov/business/residential-contractors/residential-contractor-licensing“A Q registration is good for two years from the date the individual passed the license exam and must be renewed every two years. All qualifying persons must complete 14 hours of DLI-approved continuing education to renew their Q registration. At least one hour must relate to the Energy Code. At least one hour must relate to business management strategies.”
https://www.dli.mn.gov/business/residential-contractors/residential-contractor-licensing“A company's qualifying person must pass our prelicensing exam for the company to apply for a license. There are no prerequisite experience or educational requirements to take the residential building contractor, remodeler or roofer exam.”
https://www.dli.mn.gov/business/residential-contractors/contractor-roofer-and-remodeler-exams“The exam consists of 110 multiple choice questions and a score of 70% or higher is required to pass. Roughly 60% of the exam questions relate to the provisions of the Minnesota Residential Building Code and the rest relate to the statutes and rules governing the various aspects of the residential construction industry. Applicants have five and a half hours to complete the exam.”
https://www.dli.mn.gov/business/residential-contractors/contractor-roofer-and-remodeler-exams“New license applicants and licensees renewing their license must pay a fee into the Contractor Recovery Fund in addition to the license or renewal fee. The Contractor Recovery Fund replaces bonding requirements.”
https://dli.mn.gov/business/residential-contractors/residential-contractor-faqs“RESIDENTIAL LICENSES EXAM LICENSE BOARD CE RECOVERY FUND LATE NEW RENEW RENEW + LATE Residential building contractor (BC) Residential remodeler (CR) Tier 1 NA $180 NA $5 $320 $90 $500 $505 $595 ... Qualifying builder (QB) Qualifying remodeler (QC) Qualifying roofer (QR) Qualifying installer (QI) $50”
https://www.dli.mn.gov/sites/default/files/pdf/fees.pdf“Participating state agencies accepting the NASCLA Accredited Examination for Commercial General Building Contractors (Minnesota is not among them).”
https://www.nascla.org/nascla-commercial-exam-participating-state-agencies
Then there is the exam
Practise Minnesota exam questions free, with explanations that cite the reference book and section.