Workers in the construction field in Alaska can enjoy some of the highest salaries in the U.S. The state is ranked third in the highest-paying states for construction workers, offering plenty of opportunities for contractors to make big bucks.
To become a contractor in Alaska, you’ll need to choose your contractor license type, complete the application, pay all fees, and hold the correct insurance and bond certificates.
To learn more about this process and how each step works, check out the rest of this article below.
Do You Need a Contractor’s License in Alaska?
Alaska requires individuals to have a certificate of registration as a contractor if they want to complete any type of contracting work. This certificate is given by the AL Division of Corporations, Business, and Professional Licensing once you receive your contractor’s license.
Contracting work in Alaska is defined as building, changing, fixing, moving, or demolishing any building, road, highway, fixed structure, etc. Even “handymen” completing smaller jobs will have to get their Contractor – Handyman License from the state.
The exception to this rule is if you are working on your own property, in which case you don’t need a contractor’s license.
Types of Alaska Contractor Licenses
Alaska offers many variations of a contractor’s license. You are responsible for determining which one meets the type of work you plan to do.
The types of contractor licenses in Alaska are:
- General contractor without a residential endorsement: This license is for contractors using three or more trades OR who have mechanical/specialty subcontractors working under them.
- General contractor with a residential endorsement: This is for contractors altering privately-owned residences from 1 to 4 units. You must pass the Residential Endorsement Exam to receive this license.
- Mechanical contractor: This license type involves HVAC, plumbing, sheet metal, pipefitting, sprinkler, and dry chemical fire protection trades.
- Specialty contractor: Specialty contractors work with 3 or fewer trades. This may include electrical contracting work.
- Handyman contractor: This is for handymen who work on projects valued at $10,000 or less.
Becoming an Alaskan Contractor
To become a contractor in Alaska, you’ll first need to register your business, if applicable. Then, decide which contractor’s license you need. Next, you’ll have to meet insurance and bond requirements before finally completing the license application.
- Register your business, if applicable
If you are applying for a license as a business entity (partnership, LLC, corporation, etc.), you will need to establish your business before applying. This includes determining your line of business, choosing an applicable business name, selecting your Registered Agent with the state, and receiving your Alaskan business license.
If you are applying as a corporation, you’ll also need to register with the State of Alaska Corporations Section to receive your AL entity number. You will need this number for your license application.
- Decide which license you need
There are separate license applications for each type of contractor’s license. Depending on the scope of your work, you’ll want to choose the license that is best for you. You’ll also choose between an entity professional license or an individual professional license.
Businesses and individuals can hold multiple licenses, but you’ll need to reapply and meet the requirements for each one individually.
Those applying for the General Contractor with Residential Endorsement License must also take and pass the Residential Endorsement Exam. This exam is scheduled with and given by PSI Exams, and you don’t need a preapproval to take it. It is given on a computer, consists of 100 questions, and must be completed within 240 minutes. You should score a 70% or higher to pass.
For more information, see the PSI Candidate Bulletin.
- Meet insurance and bond requirements
If you’re applying for a contractor’s license as a business, you’ll need to hold Worker’s Compensation insurance, general liability insurance, and an appropriate bond.
Individual applicants will need to meet the general liability and bond requirements but are exempt from having Worker’s Comp if they don’t have any employees.
Requirements are as follows:
|
Contractor Type |
Required Bond Amount |
Required Insurance Amount |
|
General contractor |
$25,000 |
Property Damage: $20,000 Injury/death, 1 person: $50,000 Injury/death, 2+ people: $100,000 |
|
General contractor with residential endorsement |
$20,000 |
Same as above |
|
Mechanical contractor |
$10,000 |
Same as above |
|
Specialty contractor |
$10,000 |
Same as above |
|
Handyman contractor |
$5,000 |
Same as above |
Cash deposits are also accepted instead of bonds. For more information on these requirements, see here.
- Complete the license application
There are 5 application forms you can choose from when applying for your AL contractor’s license.
- General contractor application (no endorsement)
- General contractor with a residential endorsement application
- Handyman contractor application
- Mechanical contractor application
- Specialty contractor application
Since each license has unique directions, we will focus on the General Contractor (no endorsement) application process here. On this application, you will need to include:
- Proof of insurance
- Proof of Worker’s Comp, if applicable
- A surety bond, cashier’s check, or Time Certificate of Deposit or Savings Passbook issued by a bank in Alaska
- All notarized signatures
- Certified true versions of any attached documents
- A $350 fee ($100 application fee + $250 registration fee)
- Note: the fee may be prorated if you’re applying during an even-numbered year
Applications usually take several weeks from receipt to be processed. You can use the online site MY LICENSE to keep track of your application’s review.
Alaska Contractor License Renewals
Alaskan contractor licenses are renewed every two years, on December 31st of even-numbered years. Separate renewal applications are available depending on your license type.
Before renewal, you will need to complete 16 hours of approved Continuing Education (CE) courses. You can apply for renewal online or via mail and must also pay a renewal fee.
Contractor Salaries in Alaska
General contractors (GCs) in Alaska make an average of $105,966 annually – 14% higher than the national average for GCs. Those on the lower end make over $81,800 and the top 10% can make over $137,100. These salaries do not include an additional $6,000+ in overtime every year.
The highest-paying cities in Alaska are:
- Wasilla
- Ketchikan
- Anchorage
- College