Licensing Guides
State Contractor License: How to Become a General Contractor in Iowa
Contractor, IA
Table of Contents
Why Do You Need a Contractor License in Iowa?
How Can You Get a Contractor License in Iowa?
Types of Contractor Licenses in Iowa
What Are the Requirements of an Iowa Contractor License?
How Long Does It Take to Get a Contractor License in Iowa?
How Much Does It Cost to Get a Contractor License in Iowa?
Iowa Contractor License Training Programs and Schools
Does Iowa Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in Iowa?
Are There Any Penalties for Contracting Without a License in Iowa?
We all need a place to live and work, and those buildings require upkeep and repair. They’re often the biggest investments we make in our lives, and keeping them in good condition is essential. We count on professionals to know how to fix damage to or wear and tear on our homes and businesses. General contractors are typically the experts we rely on to help us with these repairs, and we need these men and women to know what they’re doing.
Many states require contractors to be licensed. Others simply require solid insurance to back up the essential work they perform. There are 520,900 construction managers and 1,599,800 construction laborers and helpers nationwide according to the Bureau of Labor Statistics (BLS). Iowa employs 1,990 managers and 12,290 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033; for laborers and helpers, it’s 8%. In Iowa, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for laborers is nearly double the national number at 15%; for managers, it’s at 14%. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the licensing requirements in your state or local jurisdiction. This guide will help you determine what you need before you get started.
Why Do You Need a Contractor License in Iowa?
While there’s no specific general contractor license in Iowa, the state requires all individuals and businesses performing construction work who earn $2,000+ a year to register with the Iowa Department of Inspections, Appeals, & Licensing as a Construction Contractor.
Iowa also offers trade-specific licenses for electricians and plumbers. For example, plumbing and mechanical Contractors, which includes plumbing, mechanical, HVAC, refrigeration, sheet metal, and hydronic systems services, must obtain a license from the Plumbing and Mechanical Systems Board.
Electrical contractors must obtain a separate license from the The Iowa Department of Public Safety, State Fire Marshal Division.
How Can You Get a Contractor License in Iowa?
The process is spelled out on the state website.
You must be at least 18 years of age. You must have either a Social Security number or an individual taxpayer identification number. You must also provide documentation of any criminal convictions “related to the practice of the profession,” which shall include a full explanation from the applicant.
All applicants are required to obtain an unemployment insurance number (regardless whether you have employees).
Additionally, all applicants must obtain public liability insurance, a surety bond, and workers’ compensation insurance, and also submit a Master of Record form along with the Contractor Registration application.
Types of Contractor Licenses in Iowa
The state of Iowa doesn’t offer a General Contractor license. Rather, you must register as a Construction Contractor.
Iowa offers trade-specific contractor licensure, including:
Plumbing and Mechanical Systems license
The Construction Contractor registration is required if you earn more than $2,000 per year doing construction work. The term “construction” is applied broadly and defined in Chapter 12 of Iowa Code, which includes roofing, siding, masonry, drywall, and more.
The Plumbing and Mechanical Systems license is required for any person or entity that provides plumbing, mechanical, HVAC, refrigeration, sheet metal or hydronic systems services on a contractual basis and who is paid a predetermined amount under that contract for rendering those services.
The Electrical Contractor license “is for a person affiliated with an electrical contracting firm or business who is licensed by the Board as either a Master A or B Electrician or employs a Master A or B Electrician, and who is registered with the State of Iowa Division of Labor as a contractor.”
Getting a construction contractor registration
The bottom line is that you need to be registered to do any kind of initial residential or commercial construction, repair, or maintenance work valuing more than $2,000 per year. Here’s how you go about getting registered.
APPLY FOR LICENSE: The first step is to complete the Contractor Registration application form. There are currently two ways to submit the license application.
Online: Complete the Contractor Registration application in the online portal.
Mail: Fill out the paper application and mail it to the Iowa Department of Inspections, Appeals, & Licensing in Des Moines.
Direct any questions about the application process to contractor.registration@iwd.iowa.gov.
PAY APPLICATION PROCESSING FEE: The application fee for Contractor Registration is $50. If applying by mail, you must pay with a non-refundable check or money order. Note: If you’re self-employed and don’t work with any other contractors, you can avoid the $50 fee by submitting the Fee Exemption Form.
COMPLETE CRIMINAL BACKGROUND CHECK: As part of the licensing process, all applicants must “provide documentation of criminal convictions related to the practice of the profession, which shall include a full explanation from the applicant.”
PROVIDE PROOF OF INSURANCE: All applicants must file evidence of workers' compensation insurance coverage and list the Division of Labor as a certificate holder. For self-insured contractors, submit a Certificate of Relief from the Iowa Insurance Division.
PROVIDE PROOF OF CONTRACTOR BOND: Iowa bond requirements specify you must purchase a surety bond in the amount of $25,000. Any out-of-state contractors who wish to work in Iowa must also obtain a $25,000 bond and submit the Bond form.
Upon completing these steps, you’ll receive a Contractor Registration Number.
Getting a trade-specific license
Obtaining a trade-specific license is significantly more time-consuming and involved versus obtaining a Contractor Registration. You typically need to complete an apprenticeship or gain hands-on experience before becoming eligible for the licensing exam.
For example, in Iowa, journey-level plumbers must acquire at least four years of practical experience as an apprentice and also successfully pass the Iowa journeyperson examination. A master-level plumber must demonstrate two years of experience as a journeyman and pass the Iowa Plumbing and Mechanical Systems Board master licensing examination.
This complete guide answers all of the questions about the licensing process. You can also consult our guides to getting your HVAC license, plumbing license, or electrical license in Iowa.
What Are the Requirements of an Iowa Contractor License?
There are age and financial prerequisites to receive your registration.
You must be at least 18 years of age.
You must have either a Social Security number or an individual taxpayer identification number.
Obtain an unemployment insurance number (even if you don’t have employees).
Complete the application form.
Attach workers’ compensation insurance information if you have one or more employees. For self-insured contractors, submit a Certificate of Relief from the Iowa Insurance Division.
Secure contractor’s surety bond.
Pay a $50 registration fee or include a signed and notarized fee exemption form if applicable.
Submit application with all supporting documents.
How Long Does It Take to Get a Contractor License in Iowa?
Since there are no formal education or work experience requirements, there’s no set length of time to become a licensed contractor. If you choose to pursue an apprenticeship or formal education, the time for completion varies depending on the program.
If you decide to get a plumbing or electrical license, you’ll need to acquire a minimum of four years of practical work experience.
What Business Owners Need to Know
Being efficient in the contracting world, no matter where you are in your licensing journey, takes work. ServiceTitan’s cloud-based, all-in-one contracting software gives workers and business owners in residential field service, commercial contracting, or new construction the technology they need to do the work efficiently, and the data they need to do it effectively.
ServiceTitan features:
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Location-specific service history, including recorded calls, accessible from the mobile app.
Required forms that ensure every job is done right, driving consistency.
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Sales presentations that make conversations with customers easier and drive the average ticket.
Mobile payment acceptance, eliminating lost checks and increasing cash flow.
To learn more, schedule a demo with a product expert today.
How Much Does It Cost to Get a Contractor License in Iowa?
Since there are no requirements for higher education or work experience, costs are relatively low for obtaining a Construction Contractor Registration, as the application fee is only $50.
There is also the expense of various types of insurance required for licensure, such as workers’ compensation insurance.
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Iowa Contractor License Training Programs and Schools
There are no specific educational or course requirements to get an Iowa contractor license. However, there are training programs throughout the state that can help you prepare for a career in construction.
If you want to complete an apprenticeship to grow your skills, the Iowa Workforce Development’s Office of Apprenticeship offers a Registered Apprenticeship program. According to the agency, “Iowa is now officially recognized as a State Apprenticeship Agency by the U.S. Department of Labor.”
If you choose to start your career path at a community college or university, you can pursue a degree in construction management or construction engineering. There are many higher education options that offer these types of programs. Each of the following schools offers a Construction Management Bachelor of Science degree or Associate of Applied Science degree.
Does Iowa Reciprocate Contractor Licenses?
While Iowa doesn’t offer a typical reciprocity process, the state allows any out-of-state contractor to work in Iowa as long as they complete the Contractor Registration process and meet the following requirements:
Must file a $25,000 surety bond at the time of registration
Bond must be executed by a surety company licensed to do business in Iowa.
Bond must be issued on the Out-of-State Bond form provided at www.iowacontractor.gov with the bonding company's seal and two original signatures.
Bonding company must attach its Power of Attorney (POA) to the form.
Do I Need to Renew my Contractor License in Iowa?
The Iowa Construction Contractor registration must be renewed every year. The month before the registration expires, you’ll receive a renewal form sent via mail or email. To renew, use the New Application/Renewal form, mark “renewal,” and write your current contractor registration number where indicated. A $50 renewal fee applies.
Are There Any Penalties for Contracting Without a License in Iowa?
Yes. There are fines for contracting for a construction project valued at $2,000 or more without a license. According to Iowa law, a contractor may be fined up to $500 on the first offense and no more than $5,000 on each subsequent offense. All administrative penalties are deposited into the Iowa state general fund.
National Certifications
Other certifications can help you demonstrate your proficiency to potential employers and clients. There are many professional organizations that offer certification. These certifications are not required but can add to your marketability and therefore increase your opportunity to make more money.
Some of the top construction certifications are:
Occupational Safety and Health Administration (OSHA) Safety Certificate
Construction Management Association of America Certified Construction Manager (CCM)
National Association of Safety Professionals (NASP) Certified Safety Manager (CSM) certification
National Center for Construction Education & Research (NCCER)
Continuing Education
Though Iowa does not require continuing education to renew your license, you will want to stay informed about emerging technology in the industry. There are many ways to keep yourself current in regard to the technology put to use in construction, roofing, energy and environmental designs, efficiency standards and more. For example, distributors want you to know about their company’s latest offerings and will often hold training sessions about new and changing equipment and parts. Another option is the Associated General Contractors of America (AGC) which provides continuing education courses
Resources
You can stay up to date on contracting industry news several ways:
Check top blogs, including ServiceTitan’s blog.
Read about the latest industry trends, and discover ideas on how to grow your business.
Listen to top podcasts like ServiceTitan’s “Toolbox for the Trades” podcast.
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