Vermont contractor license requirements
Vermont does not license general contractors. Since April 1, 2023, residential contractors must register with the Office of Professional Regulation for jobs of $10,000 or more, and electricians and plumbers are licensed by the Division of Fire Safety.
Vermont has no statewide general contractor license and no state exam for builders. What it has is a residential contractor registration, run by the Office of Professional Regulation (OPR) in the Secretary of State's office under Act 182 and 26 V.S.A. § 5501. Any residential contractor doing a job with an estimated value of $10,000 or more, labor and materials included, must register. Registration has been mandatory since April 1, 2023. Electricians and plumbers are a separate track, licensed by the Department of Public Safety's Division of Fire Safety.
| Rule | Vermont requirement |
|---|---|
| General contractor license | None statewide |
| Residential contractor registration | Required for residential jobs of $10,000 or more (labor and materials) with OPR |
| Registration types | Individual (self employed, no employees) or Business (has employees) |
| Fees | $75 individual; $250 business |
| Insurance | Liability of $1,000,000 per occurrence and $2,000,000 aggregate |
| Written contract | Required, with price, dates, scope, and change order terms |
| Commercial work | No OPR registration unless you take a residential job of $10,000 or more |
| Electrical and plumbing | Licensed by the Division of Fire Safety |
| Lookup | OPR Find a Professional; Division of Fire Safety master license list |
Who must register as a residential contractor
Residential contracting means building, demolishing, or altering a dwelling or a building with four or fewer residential units. It covers interior and exterior construction, renovation and repair, painting, paving, roofing, weatherization, and installing or repairing heating, plumbing, solar, electrical, water, or wastewater systems. The $10,000 figure is per job and counts labor plus materials. Barter does not get you out of it: OPR counts the true value of whatever you are paid.
Several groups are exempt. Employees of a registered business do not register separately. Tradespeople licensed by the Department of Public Safety are exempt while working within their license, as are licensed engineers and architects. Also exempt: people working on a structure not attached to a home, appliance and electronics installers, landscapers, and emergency work, as long as the contractor registers as soon as reasonably possible.
Subcontractors are a common question. A subcontractor hired by another contractor, not the homeowner, does not need to register. The moment that sub contracts directly with a homeowner on a job of $10,000 or more, it does. A commercial contractor is in the same position: no registration until it takes a residential job over the line.
How to register with OPR
- Pick the registration type. Individual registration is for self employed contractors with no employees. Business registration is for contractors with employees, and it covers those employees. An LLC with no employees can register either way.
- Register your business names. You may only contract under names registered with both the Secretary of State's business services and OPR. Using an unregistered name on a contract counts as unauthorized practice.
- Get insurance. Upload a certificate showing liability coverage of at least $1,000,000 per occurrence and $2,000,000 aggregate. You upload it again at each biennial renewal.
- Apply online through OPR's Online Services System, attest that you use written contracts, and pay the non-refundable fee: $75 for individuals or $250 for businesses.
- Allow processing time. OPR asks applicants to allow at least 5 full business days.
Contract and down payment rules
Vermont's registration law reaches into the contract itself. A registered contractor must have a written contract before starting, and it must include:
- Price: a maximum price for all work and materials, a time and materials basis with a not to exceed price, or time and materials with no maximum.
- Dates: estimated start and completion dates.
- Scope: a description of the work and of the materials to be used.
- Changes: how and when amendments are approved and documented. Every change order must be a signed writing.
Down payments are capped on priced contracts. If the contract has a maximum price or a not to exceed price, the deposit can be up to one half of the labor cost or one half of the materials price, whichever is greater. On a time and materials contract with no maximum, the deposit is whatever the parties negotiate. Example: a Burlington kitchen remodel with $28,000 of labor and $22,000 of cabinets and finishes under a fixed price allows a deposit of up to $14,000, the greater of the two halves. OPR does not review contracts, so getting this right is on you.
Electricians, plumbers, and other trade licenses
The Division of Fire Safety licenses electricians (master, journeyman, and specialist), plumbers (master, journeyman, specialist, and water heater, heating system, and water treatment specialists), plus elevator mechanics, oil burner and gas technicians, fire alarm, fire sprinkler, and chimney sweep certifications. Its licensing ledger includes specialist codes such as refrigeration and air conditioning and solar panel installers. Most of these programs require continuing education, and some applications and renewals can be done through the Division's web portal. Plumbing and elevator exams use International Code Council testing.
How to look up a Vermont contractor
Search OPR's Find a Professional for residential contractor registrations, including any discipline on the record. For electricians and plumbers, use the Division of Fire Safety's master list of license and certification holders. OPR handles unprofessional conduct by registered contractors; it does not award damages or mediate disputes, which the Attorney General's Consumer Assistance Program may help with. For payment rights, see Vermont mechanics lien law and the Vermont prompt payment act.
Smart Business Automator stores each sub's registration or trade license, insurance certificate, and expiration dates together, and routes signed change orders so the written record Vermont expects is always there. See change order approval automation.
Frequently asked questions
Do you need a license to be a general contractor in Vermont?
No. Vermont has no statewide general contractor license. Residential contractors must register with OPR for jobs of $10,000 or more, and electrical and plumbing work needs a Division of Fire Safety license.
How much does Vermont residential contractor registration cost?
$75 for an individual registration and $250 for a business registration. The fee is non-refundable.
Do subcontractors have to register with OPR?
Not when they are hired by another contractor. A sub must register if it contracts directly with a homeowner on a residential job of $10,000 or more.
What insurance does a Vermont residential contractor need?
Liability coverage of at least $1,000,000 per occurrence and $2,000,000 aggregate, with a certificate uploaded at application and at each renewal.
How big a deposit can a Vermont contractor take?
On a contract with a maximum or not to exceed price, up to one half of the labor cost or one half of the materials price, whichever is greater. On open time and materials work, the deposit is negotiated.
Sources
- Vermont Office of Professional Regulation: Residential Contractors
- Vermont Office of Professional Regulation: Residential Contractor FAQs
- Vermont Office of Professional Regulation: Residential Contractor applications and renewals
- Vermont Office of Professional Regulation: Find a Professional
- Vermont Division of Fire Safety: Trade licensing and certifications
Laws and rates change. Confirm current requirements with the state agency before you bid, file, or pay. This page is general information, not legal advice.
