At a Glance
Quick Answer
North Dakota requires a state-level contractor license for projects above $4,000 per project. Exam required. NASCLA not accepted. Administered by North Dakota Secretary of State / Construction Licensing.
Context
Licensing & Bidding in North Dakota
North Dakota requires a state contractor license for any project valued at $4,000 or more, administered through the Secretary of State's construction licensing program. That low threshold means nearly any meaningful bid — public or private — will require your license number and the correct class on the proposal. North Dakota uses four classes tied to project value: Class A (unlimited), Class B (up to $500,000), Class C (up to $100,000), and Class D (up to $50,000). Match your class to the bid before you commit; submitting on work above your class limit can render your bid non-responsive and jeopardize contract enforceability.
The state requires an exam, and while North Dakota does not accept the NASCLA national exam, it does offer exam reciprocity with Minnesota, which can shorten the path for contractors already qualified there. Out-of-state bidders should still expect to register the business, satisfy insurance requirements, and note that workers' compensation in North Dakota runs exclusively through the monopolistic Workforce Safety and Insurance (WSI) fund — you cannot use a private carrier, so build WSI coverage into your labor burden when pricing bids.
Bidding unlicensed in North Dakota is a Class B misdemeanor, exposing you to fines up to $1,500 and up to 30 days imprisonment. Beyond the criminal exposure, the practical hit is to your collections position and standing on public work. To protect bid work, verify your license class covers the contract value, confirm WSI coverage is active before mobilizing, and renew on time so an expired credential never disqualifies an otherwise winning bid.
Details
Key Facts & Fees
Key Facts
- GC License Required
- Yes
- Threshold
- $4,000 per project
- Exam Required
- Yes
- NASCLA Accepted
- No
Fees
- Application Fee
- $100
- License Fee
- $100 - $400 depending on classification
- Renewal Fee
- $100 - $400 annually
Reference
Key Facts
License required for projects valued at $4,000 or more
Classifications: Class A (unlimited), B ($500K), C ($100K), D ($50K)
Workers compensation through monopolistic Workforce Safety and Insurance (WSI)
Exam reciprocity with Minnesota
Requirements
Insurance Requirements
Education
Continuing Education
Not required
Interstate
Reciprocity States
Specialty
Specialty Licenses Required
Process
How to Apply
- 1Submit application to the North Dakota Secretary of State
- 2Pass the required contractor exam for your classification
- 3Obtain general liability insurance
- 4Obtain workers compensation through Workforce Safety and Insurance (WSI)
- 5Post required surety bond for your classification level
- 6Pay application and license fees ($100-$400)
Enforcement
Penalties for Unlicensed Work
Class B misdemeanor; fines up to $1,500; up to 30 days imprisonment
Resources
Related Templates
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FAQ
Questions Contractors Ask
Do I need a contractor license in North Dakota?
Yes. North Dakota requires a state-level contractor license for projects above $4,000 per project. The administering board is North Dakota Secretary of State / Construction Licensing.
Is an exam required in North Dakota?
Yes. North Dakota requires a licensing exam. You must pass the state-specific exam.
What insurance is required in North Dakota?
General Liability: Required; amount varies by classification. Workers Comp: Required through monopolistic state fund (WSI). Bond: Required; amount varies by classification (Class A-D).
What are the penalties for unlicensed contracting in North Dakota?
Class B misdemeanor; fines up to $1,500; up to 30 days imprisonment
What are North Dakota's contractor license classes?
North Dakota issues four classes by project value: Class A (unlimited), Class B (up to $500,000), Class C (up to $100,000), and Class D (up to $50,000). Choose the class that covers your largest anticipated contract, because bidding above your class limit can make your proposal non-responsive.
Does North Dakota accept the NASCLA exam or offer reciprocity?
North Dakota does not accept the NASCLA national exam, but it does provide exam reciprocity with Minnesota. Contractors already qualified in Minnesota may avoid retaking the trade exam, though they must still complete North Dakota's business registration, insurance, and licensing application steps.
How does workers' compensation work for contractors in North Dakota?
North Dakota uses a monopolistic state fund — Workforce Safety and Insurance (WSI). Private workers' comp policies are not permitted, so contractors must obtain coverage through WSI. Factor WSI premiums into your labor burden when estimating bids, as this differs from most states' open-market carrier model.
