The Real Estate Encyclopedia
Are Builders Licensed?
Category - Home Ownership Questions - Building Your Home FAQ's
In most states (but not all – check with your county) builders must be licensed. Most states have specific requirements regarding the need for a building license. There are typically different types of licenses, such as a builder license for contractors who want to contract or subcontract a building project. Some of these builder licenses also require that all trade contractors on the license holder’s building site be licensed as well. This includes 

Typically, the nominee supervisor must hold a license (again check with your county and state for your local requirements). The nominee’s license typically allows the holder to supervise construction work but not to hire subcontractors.

In addition, most states require a license if you perform any building work within one of the following classes regardless of the value:

Fire Protection providing advisory, administrative, management or supervisory services in relation to building work; or entering into a contract or submitting a tender for building work or offering to carry out building work.

A builder licensed in another state typically may not perform building work but may be able to apply for an equivalent license to be granted under the Mutual Recognition Principle. Most builders have a preferred area and are not willing to undertake projects somewhere else. This has to do with the infrastructure of contractors and subcontractors they need to have in place to complete construction.

Home Ownership Questions - Building Your Home FAQ's
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