Delaware contractor licenses: three layers to know before you bid

The statutes reviewed for this page set no general contractor exam. Delaware instead stacks three separate requirements on anyone doing construction-type work, then licenses a handful of trades on top. The business license sits with the Division of Revenue, the registration sits with the Department of Labor, and trade licenses sit with boards in the Division of Professional Regulation. Our Delaware startup guide covers forming the company itself. This page covers what each trade needs after that, and it pairs with the national overview in how to get a contractor license.

Layer one and two: the business license and the Labor registration

The Division of Revenue requires any contractor conducting business in Delaware to obtain a business license, and nonresident contractors file a separate package that includes a bond or letter of credit. The Division's contractor Tax Tips sheet (the copy we read carries a 2012 creation date, so confirm current figures with the Division) sets the license at $75 a year and requires nonresident contractors to post a bond equal to 6 percent of the total of all contracts over $20,000. A Delaware general contractor that hires a nonresident subcontractor must report the contract on Form 5060 within 10 days.

The Contractor Registration Act, Title 19, Chapter 36 of the Delaware Code, adds the second layer. Section 3604 says a contractor must register before performing construction services or maintenance. The definition is wide. It covers work on any building, structure or improvement and lists clearing and landscaping, including tree cutting. The definition of a contractor includes subcontractors and lower-tier subcontractors, and the statute counts owner operators and independent contractors as subcontractors.

The application asks for your business details, tax identification number, proof of Delaware workers' compensation, proof of a state business license, and an OSHA-compliant safety plan. It also asks about past labor-law citations and certain home improvement or new home construction convictions for anyone with a financial interest. The statute lists no exam or experience test.

The fee is set in the statute. A contractor without a state public-works contract pays $200 for the first annual registration and $200 for the second. After two consecutive years without violations, a two-year registration costs $300. For contractors with public-works contracts the figures are $300, $300 and $500. Renew no less than 30 days before expiration. If you let a registration lapse before renewing, you must apply as if for the first time.

What happens without registration

Section 3609 sets a civil penalty of $5,000 to $85,000 per violation when a violation is knowing, and up to $1,000 per violation when it is not. The Department can sue to enjoin an unregistered contractor from working. It can also suspend or revoke your own certificate if you contract with or use a subcontractor who is not registered. For a general contractor, that makes checking every sub's certificate part of the job, not paperwork. The Department can require a surety bond of up to $10,000 per worker from a contractor under investigation for a knowing violation.

Electricians need a license, and the experience bar is stated in the statute

The Board of Electrical Examiners licenses master electricians, limited electricians, journeypersons and specialty classes. Under 24 Del. C. Chapter 14, a master electrician applicant needs six years of full-time experience under a licensed master, or 8,000 hours plus 576 hours of related instruction, or four years of experience plus two years of technical training. A limited electrician, whose knowledge is limited to residential work, needs three years or 4,000 hours plus 288 hours of instruction. Reciprocity applies when the other state's standards are substantially similar, and an applicant from a state whose standards are not similar must have practiced at least five years after licensure.

Plumbing and HVACR: master licenses with a supervised-employee exemption

The Board of Plumbing, HVACR Examiners licenses master plumbers and master HVACR contractors, plus a master restricted HVACR license for a specialty such as air conditioning. Work performed by an apprentice, journeyman or mechanic under the supervision of a master who is the employer, or who is employed full time by the same business, does not need its own license. A homeowner may do HVACR work other than gas piping in their own home, and may do plumbing other than gas piping there after filing for a permit.

A master plumber applicant needs a journeyman's certificate plus two years under a master, or seven years of supervised plumbing and an equivalency test, then a written exam. A first offense for working without the required license is a fine of $1,500 to $3,000, and later offenses are $3,000 to $6,000. Reciprocity for HVACR applies when the other state's standards are substantially similar. If they are not, seven years of practice after licensure is required. Read more in how to become a licensed plumber.

Pesticides, septic systems and home inspection

The Department of Agriculture certifies commercial pesticide applicators. Anyone buying or using a restricted-use pesticide must be certified, and commercial applicators who treat other people's property also need a Pesticide Business License. Commercial applicators pass a core exam and one or more category exams, given at least every 45 days at the Ag Education Building on the Delaware State Fairgrounds. Category 03 covers ornamental and turf, and category 7A covers general pest control. Soil termiticide work needs a valid 7B designation. Commercial certification renews annually, with 8 recertification hours per three-year cycle for ornamental and turf and 18 for general pest control. The wider process is in our pest control license walkthrough.

The Department of Natural Resources and Environmental Control (DNREC) licenses the people who design, install and haul from on-site wastewater systems. Class E covers system contractors who install systems, and Class F covers liquid waste haulers. The On-Site Systems Advisory Board reviews applications, the license exam has a 70 percent pass mark, and exams are offered quarterly. Licenses renew annually before December 31 with proof of at least 10 hours of approved training.

Home inspectors need a license under 24 Del. C. Chapter 41. Section 4107 bars anyone from advertising or acting as a home inspector without one, and section 4109 requires trainees to register and practice under direct supervision. Applicants must have finished high school and passed a written exam.

Trades with no state contractor license

This page found no statewide license for roofing, painting, general remodeling, mowing, pressure washing or cleaning. Those trades still need the business license and, when the work counts as construction or maintenance, the Labor registration. Local governments can add their own permits and licenses. Landscaping and tree cutting are named in the registration definition, so lawn and landscape companies should treat registration as the default. Delaware also has no sales tax. It taxes gross receipts instead, which our state sales tax table explains.

General information only, and not legal advice. Delaware agencies change fees and forms, so confirm each requirement with the Division of Revenue, the Department of Labor, the Division of Professional Regulation, the Department of Agriculture or DNREC before acting.

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