Licensing Guides
State Contractor License: How to Become a General Contractor in Vermont
Contractor, VT
Table of Contents
Why Do You Need a Contractor License in Vermont?
How Can You Get a Contractor License in Vermont?
Types of General Contractor Licenses in Vermont
What Are the Requirements of a Vermont Contractor License?
How Long Does It Take to Get a Contractor License in Vermont?
How Much Does It Cost to Get a Contractor License in Vermont?
Vermont Contractor License Training Programs and Schools
Does Vermont Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in Vermont?
Are There Any Penalties for Contracting Without a License in Vermont?
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 people 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). Vermont employs 770 managers and 1,620 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033 and 8% for laborers and helpers. In Vermont, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for managers and laborers is slightly higher at 10% for each. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the requirements in your state or local jurisdiction. This guide will help you determine what you need before you get started as a registered contractor in the state of Vermont.
Why Do You Need a Contractor License in Vermont?
There is no state-level general contractor license in Vermont. However, residential contractors who perform construction work valued at $10,000 or higher, inclusive of labor and materials, are required to register with the Vermont Secretary of State Office of Professional Regulation.
Municipalities generally don’t require contractor licenses either. For example, the cities of Burlington, South Burlington, and Rutland only require contractors to obtain building permits for projects.
Vermont does issue state-level licenses for several specialty trades, including plumbers, electricians, asbestos abatement, and lead abatement. A state license is not required for HVAC work.
How Can You Get a Contractor License in Vermont?
There is no general contractor license in Vermont, and most municipalities have minimal requirements. Make sure to check local requirements in the city or town where you plan to work.
Residential work valuing $10,000 or more requires registration with the Vermont Secretary of State Office of Professional Regulation. The process is outlined on the Secretary of State website. Individuals and businesses must provide documentation of their name registered with the Corporations Division and show active status. In addition, applicants need general liability insurance with a minimum of $1 million per occurrence and $2 million aggregate. Contractors are required to utilize residential contract agreements and have a contract agreement in place before accepting deposits or beginning work projects valued at $10,000 or higher. A registration fee of $75 for individuals and $250 for businesses applies.
Types of Contractor Licenses in Vermont
Vermont doesn’t require a general contractor license at the state level, and local municipalities have few additional requirements. There is a required registration for residential contractors as of April 1, 2023. This is intended to protect contractors and homeowners.
Getting a general contractor license
The bottom line is you need to register with the Vermont Secretary of State Office of Professional Regulation if you complete any kind of residential construction, repair, or maintenance work in the state of Vermont that is valued at $10,000 or more. The registration application process includes:
REGISTER YOUR NAME: Individuals and businesses are required to register their name with the Vermont Business Services Division. An assumed business name registration costs $50. You will be required to show documentation of name registration and active status for the application, which can be a screenshot or PDF. To find this, follow this link, search by your business name or ID, select your business, then take a screenshot or print the page.
OBTAIN REQUIRED INSURANCE: Applicants need general liability insurance with a minimum of $1 million per occurrence and $2 million aggregate.
APPLY ONLINE: You must create an account through the state’s online services platform to complete the application. A $75 application fee is required for individuals, or $250 for businesses.
Note: Within the application, you must attest to using a written contract prior to receiving a deposit or commencing residential construction work if the estimated value of the labor and materials exceeds $10,000. The state provides a sample contract that can be used. Contracts must include:
Price: The contract must include either maximum price for all work and materials, statement that billing and payment will be made on a time and materials basis, not to exceed a maximum price, or a statement that billing and payment will be made on a time and materials basis and that there is no maximum price.
Work dates: Specify an estimated start and end date.
Scope: Contracts must include a description of services to be performed and materials to be used.
Change order provision: The agreement must outline how and when amendments to the contract may be approved and documented, as agreed by the parties.
Getting a specialty license
Unlike with general contractors, Vermont does issue trade licenses for electricians, plumbers, and more at the state level. Specialty trades typically require strict licensing requirements that include years of experience and classroom training.
For example, the Vermont Department of Public Safety Division of Fire Safety issues state plumbing licenses. A plumbing apprenticeship that offers at least 12,000 hours of on-the-job plumbing work experience is required before obtaining a journeyman plumber’s license. Plumbing contractors must also pass a journeyman plumber exam, administered by the Vermont Plumbers Examining Board. To become a master plumber, candidates must work as a licensed journeyman plumber for at least 12 months and pass an exam.
The Vermont Electrical Board issues electrical licenses in the state of Vermont. Becoming a journeyman electrician requires completing 576 hours of classroom-based training, as well as 8,000 hours of full-time electrical work experience through an approved Vermont apprenticeship program, or accumulating 12,000 hours of documented relevant experience, including signed affidavits from previous employers. There’s also an exam. You must hold a journeyman license for at least two years before becoming a licensed master electrician.
For those interested in specific trade licenses, we recommend consulting our comprehensive guides to getting an electrician license, plumber, or HVAC license in Vermont to understand the full scope of requirements and opportunities.
What Are the Requirements of a Vermont Contractor License?
To recap, the only state-level contractor license requirement is registration with the Vermont Secretary of State Office of Professional Regulation. This registration is intended to demonstrate that an individual who will be serving the public is properly prepared to do the job right. To that end, there are insurance requirements and financial prerequisites.
Applicants must register their name with the Business Division for $50.
Applicants need general liability insurance with a minimum of $1 million per occurrence and $2 million aggregate.
An application fee of $75 for individuals and $250 for businesses apply.
All applicants must attest to using residential contract agreements.
How Long Does It Take to Get a Contractor License in Vermont?
Because there are no education or experience requirements or license exams to complete in order to work as a contractor in Vermont, you can register your business quickly.
The Vermont Secretary of State website says to allow a minimum of five full business days for application processing. This time varies depending on complexity and volume. You can review the status of your application in your online account, and all updates are sent to the email address on file.
What Business Owners Need to Know
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How Much Does It Cost to Get a Contractor License in New Vermont?
The licensing process is relatively affordable in Vermont. Residential contractor registration requires a name registration for $50, plus an application fee of $75 for individuals or $250 for businesses.
It’s important to consider other potential expenses beyond license fees, including the cost of obtaining required insurance policies (general liability and workers’ compensation) and any business setup costs. These fees collectively contribute to ensuring contractors meet local and state standards for safety, competence, and professionalism.
Contractors should budget for both upfront and recurring expenses, such as annual license renewals or insurance premiums, to maintain compliance and keep their businesses running smoothly.
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Vermont Contractor License Training Programs and Schools
While Vermont does not mandate specific educational requirements for contractor registration, the state offers numerous pathways for professional development and skill enhancement in the construction industry. The absence of mandatory coursework provides flexibility for aspiring contractors to pursue their careers through various educational and experiential routes.
If you choose to start your career path at a college or university, you can pursue a degree in construction management or construction engineering. There are higher education options throughout the Green Mountain State that offer these types of programs. They include:
If you don’t attend any formal schooling or training, but want to learn on the job, you may want to consider an apprenticeship. Apprenticeships represent a dynamic alternative to traditional academic paths, offering practical, on-the-job learning experiences. Through an apprenticeship, you work, accumulate necessary experience, and can earn money all at the same time. The length of time to complete an apprenticeship depends on the trade and program. The State of Vermont Department of Labor oversees a Registered Apprenticeship Program, which maintains a list of current apprenticeship opportunities for job seekers.
Does Vermont Reciprocate Contractor Licenses?
Because Vermont doesn’t offer a general contractor license, the state doesn’t permit license reciprocity with other states.
Do I Need to Renew My Contractor License in Vermont?
Yes, residential contractor registrations must be renewed by March 31 of odd-numbered years. The renewal fee is $75 for individuals and $250 for businesses.
Are There Any Penalties for Contracting Without a License in Vermont?
Yes. Act 182, which introduces the regulation of residential contractors, states a person who does not register as required may be subject to an injunction or a civil penalty, or both.
Beyond the direct legal penalties, unlicensed contractors risk damage to their reputation, loss of client trust, and potential civil lawsuits if their work fails to meet safety or quality standards. Additionally, contractors operating without the required insurance coverage could be held personally liable for accidents, injuries, or property damage, which can result in significant financial losses.
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 Vermont does not require continuing education to perform contracting services, 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 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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