Maryland offers a Home Improvement License for contractors completing residential work. To acquire this license, you’ll need to pass an official exam and apply with the state. If your scope of work includes electrical, plumbing, or HVAC work, you may also need additional licensing.
Let’s break down the process below.
Maryland Home Improvement Contractor Licenses
The MA Home Improvement License covers any altering, remodeling, repairing, or replacement of parts of a residence. To get this license, you’ll need to gain at least 2 years’ experience, pass a PSI exam, meet the financial requirements, hold a Certificate of Good Standing (if applying as a corporation), submit a certificate of trade name, have liability insurance, and complete the application.
- Experience
To apply for a contractor’s license, you’ll need at least 2 years of experience in home improvement work and/or education. You will need to verify this on your application through professional references, transcripts, etc.
- Exam
Before applying, you should take and pass the appropriate Home Improvement Contractor PSI exam. This exam is 150 minutes long, includes 55 questions, and costs $63. Your 2 years of work experience will be verified before you’re approved to take the exam.
The topics on the exam are:
- Home Improvement Law
- Door-to-Door Sales
- Labor Laws
- Safety Regulations
- Estimating
See the PSI Candidate Bulletin for more information.
- Finances
Applicants will need to prove financial stability depending on the size and scope of their contracting business. You’ll be asked to provide information about your total assets, liabilities, credit, and net worth.
If you don’t meet the financial requirements, you can buy a surety bond or acquire an indemnitor to do so.
- Certificates
If you are applying as a corporation, you’ll need a Certificate of Good Standing from the Bureau of Corporations.
All businesses will need to show a trade name certificate to show that the name is registered with the Department of Assessments and Taxation.
If you plan to work on any homes built before 1978, you’ll also need a lead abatement accreditation that can be procured through the EPA or the MA Department of the Environment.
Additional construction certifications may also help bulk up your resume and knowledge base. Check out things like OSHA trainings or specific, nationally-recognized certifications in your field to boost you up among the competition.
- Insurance
All general contractors should have general liability insurance of at least $50,000 to cover any work-related accidents or incidences.
If you plan to cancel your liability insurance, you must notify the Commission at least 10 days before the effective date. Without liability insurance, your license will likely be voided.
- Application
Once you have all the necessary experience, pass the test, and hold all required insurance and finances, you can apply for your license. You’ll need to pay a $250 application fee, $250 per additional company location, $100 into a Guaranty Fund Assessment, and a $20 processing fee.
Licenses are good for two years. Renewals can be done online. Renewal fees are the same as original licensing fees. For more information, see here.
