As of 2021, Idaho had one of the highest inbound rates across the country. With so many people flocking to the Gem State, you may be considering making a move there yourself.
For those planning on becoming a contractor in Idaho, you’ll need to have a contracting business that is registered with the state and adhere to your city’s contracting regulations. If you plan to contract on public works, you’ll then apply for an Idaho Construction Manager License. Electrical, HVAC, plumbing, and public works contractor licenses are also available through the state.
Do You Need a Contractor’s License in Idaho?
There is no general contractor’s license in Idaho for those working on private residential or private commercial contracting, although your business must be legally registered. Individual cities may also have their own contractor requirements.
If you plan to complete electrical, HVAC, or plumbing work or work on publicly-funded projects, however, then you will need a license or to hire a subcontractor with the appropriate license.
The Idaho Division of Building Safety requires electrical, HVAC, and plumbing contractors to have a contractor’s license in Idaho. Those engaging in construction management services on public works are also required to hold the Idaho Construction Manager License. Anyone who violates this law is subject to civil penalties.
Becoming a General Contractor in Idaho
Since there is no state-wide regulation of general contractors (GCs), you will not need a license to be a GC in Idaho. Instead, you’ll need to legally register your contracting business and hold the appropriate general liability insurance, Worker’s Compensation insurance, and bond. Your city may also require you to register as a contractor before beginning to work.
- Register your business
Follow these steps to register your business.
First, you’ll choose your legal business structure (partnership, corporation, LLC, sole proprietorship, etc.).
Next, you’ll register your legal business name and entity with the Secretary of State. Make sure your business name matches the type of contracting work you do. For example, if you are going to do concrete work, you cannot name your business “ABC Roofing Contractors,” or it will be misleading and you will be denied registration.
Finally, you’ll need to register with the appropriate state agencies, depending on the type of work you’re doing and whether or not you plan to have employees.
- Contract the right insurance policies
General contractors should hold general liability insurance to cover any accidents or damages on site. If you have employees, you will also need to have Worker’s Comp insurance. Certain cities may also require you to have a bond on file.
- Check your local regulations
The final step to becoming a GC is to check your city’s regulations for further contractor requirements. Many cities in Idaho require contractor registration.
Cities will also guide the minimum insurance amounts you should hold as a contracting business in the area.
Additionally, if you plan to complete any electrical, HVAC, plumbing, or public work, be sure to hire a licensed subcontractor or to apply for a license yourself if you hire a qualifying individual.
Types of Contractor Licenses in Idaho
Below are descriptions of the four types of contractor licenses, plus the construction management license offered in Idaho.
Idaho Public Works Contractor License
Contractors constructing, reconstructing, or repairing any publicly-funded project worth over $50,000 must have their Public Works Contractor License. There are 8 classes of licenses (page 7) that determine the maximum value of projects the contractor can undertake.
ID Construction Management License
Public works contractors must either hold or employ someone who holds an ID Construction Management License. This license is required for any projects valued at $10,000 or more with some public funding or for projects of any value that are publicly funded.
Electrical Contractor License
Electrical contractors are or employ at least one full-time master electrician and offer electrical contracting services.
HVAC Contractor License
HVAC contractors are any person or business that installs, maintains, or repairs heating, ventilation, or air conditioning appliances/equipment. You must have been a licensed HVAC journeyman for at least 2 years before applying to be an HVAC contractor.
Plumbing Contractor License
Plumbing contractors are certified as competent by the ID Plumbing Board before being able to work in the state. To receive this certificate, you must have 2.5+ years of verifiable experience as a licensed journeyman plumber in Idaho. Out-of-state licensed plumbers can also apply for this certification.
How to Get an ID Contractor’s License
While each contractor’s license has a unique application (found through the links above), each follows a similar process. To receive your license, you’ll need to:
- Complete a contractor license application
- Schedule your official exam
- Submit supporting documents
Be sure to review your specific application instructions for more information on your licensing fee, exam details, and any additional requirements.
- Complete the application
Most contractor license applications will require you to:
- Complete the application in full with all required notarized signatures
- Include any current or previously held license numbers
- Submit your business registration information, if applicable
- Complete work verification forms to prove relevant experience
- Pay an application fee
If your application is missing any documents after submission, you will be notified.
- Schedule your exam
Once your completed application is approved, you can schedule and take your official contractor’s exam. This exam may be open-book, depending on which license you are applying for. Typically, you will need to score a 70% or higher to pass a contractor’s exam.
Some businesses will have a designated party who will take the exam. This is the person who is qualified to perform and supervise the contracting work. They must be a full-time employee of the applying business.
- Submit supporting documents
Once you or your qualifying party has passed the exam, you’ll need to submit supporting documents and pay any leftover fees before receiving your license. This is usually proof of insurance or bond. For example, plumbing contractors must send proof of a $2,000 Surety Bond and pay a licensing fee.
Once all supporting documents and payments are submitted, you will receive your license.