Ready to be a contractor? What you need to know

In Washington, all construction contractors are required to register with the Washington State Department of Labor & Industries (L&I). State law also requires construction contractors to be bonded and insured to protect the public. 

Once registered, contractors can get to work – bidding, advertising, and performing construction work. This can include constructing, remodeling, repairing and demolishing buildings, roads and other real property.  

The state divides construction contractors into two categories: 
General contractors can perform most types of construction work. They can hire subcontractors in multiple specialties. However, contractors working with plumbing, electrical, elevators, mobile home installation, boilers, and asbestos have additional requirements for education, examination, and licensing. General contractors are required to hold a surety bond of $30,000. 

Specialty contractors can only perform work in the specialty they are registered in. L&I regulates 63 specialties that each require contractor registration. These specialties include roofing, painting, HVAC, tree removal, mobile home set-up, and dozens more. Specialty contractors cannot hire subcontractors and are required to hold a bond of $15,000. 

There is a three-step process to register as a contractor:
Step 1: Decide on your business structure and name 
If you are setting up a sole proprietor or partnership, decide on your business name, or if you already have registered your business and have a Uniform Business Identifier (UBI), proceed to step 2. 
If you are starting a business that is incorporated, such as an LLC or Corporation, contact the Secretary of State or a private attorney to incorporate your business. 

Step 2: Purchase your surety bond and insurance 
To register as a contractor, you will need to purchase: 
A Washington Continuous Contractor Surety Bond in the amount of: 
•    $30,000 for general contractors. 
•    $15,000 for specialty contractors. 
A general liability insurance policy in the amount of: 
•    $200,000 in public liability and $50,000 property damage, or 
•    $250,000 combined single limit. 

Your bond and insurance must use your exact business name, and L&I must be listed as a certificate holder for your liability insurance. 

Step 3: Visit your local L&I office 
At your local L&I office, customer service representatives can help you register your business and complete your Application for Contractor Registration. You’ll also want to have the materials you’ve collected in steps one and two on hand to provide along with your application. You’ll also need to pay the application fee of $132.60. 

If all of this seems overwhelming, never fear! The experts at L&I will be talking about the process to register as a contractor on Nov. 21 via Zoom. Be sure to join this no-cost workshop to get your construction business started on a solid foundation. 

English session, 10:30 a.m.   REGISTER HERE
Spanish session, 1 p.m.   REGISTRATE AQUI