• Hiring a Construction Contractor
• Hiring a Handyman
• Licensed and Insured Construction Contractors
• Scams
• Successful Home Improvement Projects

What should I know before hiring a construction contractor?

Most home construction contractors provide skilled services, hire trained and licensed subcontractors, and use reliable materials. But not every person who purports to be a contractor is skilled, experienced, and qualified. Before embarking on your home improvement project, take the following steps:

• Make sure the contractor is registered and has a bond and insurance
  In Alaska, most contractors that perform residential home improvements must be licensed by the Division of Corporations, Business and Professional Licensing. Among other requirements, general contractors must post a bond for $25,000 and specialty contractors for $10,000.
  Warning: Sometimes people will say they are "licensed and insured" when they only have a business license and liability insurance -- not a professional license and a bond. A bond may be a source of funds available to a homeowner if work is negligently performed.
• Check references and get written estimates
  Being licensed and bonded is not a guarantee of high quality performance. Interview and get bids from two or three contractors. Check their references and talk to friends, neighbors, or former clients who are familiar with the contractor's work, reliability, and business practices. Estimates should be in writing and include detailed specifications for the job, the materials, labor, timeline, and the total charges for the work.
• Research complaint history
  Check with the BBB for complaints against the contractor. You may also want to check court records to see if lawsuits have been filed for incomplete or shoddy workmanship or for other unfair or deceptive practices.
• Insist on a detailed written contract
  A home improvement contract is a written agreement defining exactly what work will be performed, the materials used, the start and completion dates, the total cost of the project, and a payment schedule. Oral promises are very difficult to enforce; if a provision is not written in the contract, you'll have a hard time proving it was part of the deal. A well-written, detailed contract will provide clear expectations for you and the contractor and help avoid many of the problems experienced by consumers. Ask for time to review the contract on your own and make sure you understand the contract terms. Don't hesitate to ask for clarification or suggest modifications. Never sign a contract with blank spaces.
  Tip: Alaska has a five-day cancellation period (five business days) when a seller solicits a sale, and the agreement is signed in your home or at a place other than the contractor's place of business. The contractor should provide written notice of this right.
• Make partial payments as different stages are completed
  Don't pay a contractor in full before your project is completed. Most projects are paid for in installments, with partial payments made at different stages. Final payment should be contingent on satisfactory inspection of the project.
  You should know the entire cost of your proposed project, including any interest charges, and then comparison shop for the financing you need from reputable lenders through personal, bank, or home equity loans.

What if who I am hiring is a "handyman"?

Starting January 1, 2015, a professional “General Contractor – Handyman” license is required. If someone is doing business under this license, the aggregate total of the project must not exceed $10,000 and they must carry public liability and property damage insurance as required by AS 08.18.101.

To check the status of the contractor’s professional license, entity registration and business license with the State of Alaska, please use the license search webpage.

How do I know if a construction contractor is licensed and insured?

Checking bonding and insurance: You can and should ask a construction contractor to show you proof of their current bonding and insurance that’s required under State law. The required bond and insurance amounts differ by license type and are specified in our Bond and Insurance Quick Facts. Additionally, if a construction contractor has employees, they must hold workers’ compensation insurance.

Checking licensure: Every construction contractor must hold a professional license and a business license. Many also hold a corporate registration, but that is only required if they operate as an LLC, LP, or other type of corporate structure (rather than a sole proprietorship or partnership). See below for how you can check each license.

Professional Licensing Section: You can check to see if the contractor holds a current professional license by searching for them on our Professional License Search webpage. You can see if the construction contractor’s license is current, what specialty type(s) of license they may have, and if there has ever been any licensing action taken against them. You will also be able to see the owner of the license:

• If it’s an individual or two individuals listed by name, they will not hold a corporate registration but must still hold an active business license.
• If it’s a company, LLC, LP, etc., they must hold both a corporate registration in good standing and an active business license.

Corporations Section: If a contractor is an entity (i.e. corporation, LLC, etc. as noted above), you can check to make sure their corporate registration is in good standing on our Search Corporation Database webpage.

Business Licensing Section: Per Alaska Statute AS 43.70, an Alaskan Business License is required prior to engaging, or offering to engage, in a business activity in the state. You can check the status of a contractor’s business license on our Search Business License Database webpage.

How can I protect myself from home-improvement scams?

Don't do business with anyone who claims to be a contractor and who:

• solicits door-to-door
• asks you to pay for the entire job up-front
• pressures you for an immediate decision
• offers you discounts for finding other customers
• just happens to have materials left over from a previous job
• only accepts cash payments
• asks you to get the required building permits
• offers exceptionally long guarantees
• suggests that you borrow money from a lender the contractor knows. If you're not careful, you could lose your home through a home improvement loan scam.

What steps can I follow to ensure my home-improvement project is done correctly?

• Ensure that your contractor has complied with state licensing requirements. To check the status of the contractor’s professional license, entity registration and business license with the State of Alaska, follow the instructions here.
• Verify your contractor's name, address, telephone number, credentials, and references before signing a home improvement contract.
• Solicit two or three bids from contractors for your project and get written estimates for the detailed specifications included in your home improvement plan.
• Include in your contract all the terms, conditions, warranties, and verbal promises concerning your home improvement project.
• Do not sign a contract until you have thoroughly read and understood all its provisions, notices, and terms. Never sign a written agreement that is not completely filled out.
• Obtain and keep copies of every written document, including contracts and receipts from suppliers and others providing materials for your project.
• Take your time, and do not hesitate to say no to high pressure sales tactics by a contractor or sales representative.
• Know about your five-day cancellation rights for door-to-door sales, and don't hesitate to cancel a home-improvement contract within the time period if you have concerns.
• Never pay for the entire job in advance or make scheduled payments before the agreed-upon terms are met and the work is completed to your full satisfaction.

Do you have another question?

Please fill out our Customer Contact Form for the fastest response.

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• Advertising Requirements
• Application Processing Time
• Bond & Insurance Documentation
• Bonding Amounts
• Contractor License Types
• Construction Contractor License
• Handyman License
• Order to Obtain Corporation Registration, Professional License & Business License
• Renewal Requirements
• Residential Contractor Endorsement

What are a contractor’s advertising requirements?

Per a combination of Professional Contractors Statutes (AS 08.18) and Business Licensing Regulations (12 AAC 12.020) a contractor’s advertising, contracts, correspondence, cards, signs, posters, papers, and documents prepared by the contractor MUST contain the following:

• Business Name as it appears on the Alaska Business License (per 12 AAC 12.020(g))
• Contractors Name as it appears on the Professional Contractor’s License (per AS 08.18.051(b))
• Contractor’s Professional License Number (per AS 08.18.051(b))
• Mailing Address (per AS 08.18.051(b))
• Physical Address (per AS 08.18.051(b))

HOWEVER, an advertisement that directs potential customers to a contractor’s website or landing page satisfies these requirements, as long as the website contains the information listed above. This change is due to the amendment to AS 08.18.051(b) which went into effect November 8, 2022.

I submitted an application but haven’t heard anything or received my license yet. What should I do?

The average time to process an application generally takes several weeks from the time the complete application packet has been submitted; and processing times can be lengthened when a program is in renewal or a heavy filing period.

You should utilize MY LICENSE to track the progress of your license. MY LICENSE is a self-serve portal that allows you to see real-time progress on your application; including all notes and status letters from the licensing examiner. Please review the MY LICENSE instructions for more information.

If you submitted your application four or more weeks ago, you have no updates on MY LICENSE, and you have not heard anything from the licensing examiner, please notify us of this situation via the Professional Licensing Contact Form.

Bond & Insurance Documentation Guidance

Q. How does my business name need to be written on the required bond and insurance documents, and how long before applying do I need to obtain those from my bond broker/insurance agent?

We suggest providing your bond/insurance agents with the Guidance on Bond or Insurance Documentation Needed (Form #08-4954) so they can see exactly what the division will need.

The way your business is listed on your bond and insurance documents must be identical to how it is listed on your license application. If the business will be owned by a corporation, LLC, LP, or LLP, then both your corporate entity name and Doing Business As (DBA) name must appear on the bond/insurance documents, unless your entity name and DBA name are identical. If your business will be owned by a sole proprietor or partners (i.e., not a corporate entity), the bond/insurance documents need to list the sole proprietor or partners name(s) as well as the DBA name.

Be sure that your DBA name on your professional license and your DBA name on your business license (which you will obtain after your professional license is issued) are also identical. You’ll also need to ensure the bond/insurance documents are submitted to our office within 30 days of issuance by your bond broker and/or insurance agent. If the documents are dated more than 30 days prior to the date the documents are received by our office, they cannot be accepted, and we’ll ask you to obtain updated documents before your license can be issued.

Examples:

• Significantly different corporation and DBA names: If you are an LLC under the name “Alaska Construction, LLC” and you list your DBA name as “Alaskans Building Things,” then your bond/insurance documents should read, “Alaska Construction, LLC DBA Alaskans Building Things."
• Slightly different corporation and DBA names: If you are an LLC under the name “Alaska Construction, LLC” and you list your DBA name as “Alaska Construction,” then your bond/insurance documents should read, “Alaska Construction, LLC DBA Alaska Construction."
• Identical corporation and DBA names: If you are an LLC under the name “Alaska Construction, LLC” and you list your DBA name as “Alaska Construction, LLC,” then your bond/insurance documents should read, “Alaska Construction, LLC”. You do not need to repeat the DBA name if it’s identical to the corporate entity name.
• Sole-proprietorships (i.e., no corporation): If you are a sole-proprietor or partnership business applying for a construction contractor professional license, then you will need to list the sole proprietor/partners names and the DBA name: “Joe Doe DBA Alaskans Building Things” or “John Doe & Jane Doe DBA Alaskans Building Things”.

What are the amounts of bonding required of contractors?

• General Contractor without Residential Endorsement: $25,000
• General Contractor with Residential Endorsement: $20,000
• Mechanical or Specialty Contractor: $10,000
• Home Inspector: $10,000
• Handyman Contractor (i.e., a contractor whose work on one project – with an aggregate contract price of $10,000 or less, including all labor, materials, and other items, - when the work is not part of a larger or major operation or otherwise divided into contracts of less than $10,000 to evade a higher bonding requirement): $5,000

How do I know which contractor license to apply for?

The only way to evaluate which license you need is to become familiar with the laws governing your profession. The statutes and regulations regarding contractors cover all circumstances in which you need a contractor license and provides for certain exemptions.

Here are some of the main clarifying points between each construction contractor license type:

• General Contractor without Residential Endorsement: Contractors whose operations require the use of three or more trades or the use of mechanical or specialty contractors and subcontractors who are under the supervision of the contractor.
  • AS 08.18.171(7). Definitions. General Contractor.
• General Contractor with Residential Endorsement: Contractors undertaking the construction or alterations of a privately-owned residential structure of one to four units that is used or intended to be used as a human dwelling.
  • AS 08.18.025. Residential Contractors.
  • AS 08.18.171(15). Definitions. Residential Contractor.
  • 12 AAC 21.650-21.695. Article 4. Residential Contractor Endorsement.
• Mechanical Contractor: Contractors whose business operations involved plumbing, pipe fitting, sheet metal, heating, air conditioning, ventilating, or sprinkler and dry chemical fire protection trades in order to install or modify mechanical piping and systems, devices, fixtures, and equipment or other mechanical materials subject to the codes listed under AS 08.18.171(12).
  • AS 08.18.028. Mechanical Contractors.
  • AS 08.18.171(12). Definitions. Mechanical Contractor.
  • 12 AAC 21.600. Article 3. Mechanical Contractor.
• Specialty Contractor: Contractors, other than Mechanical Contractors, who provide a limited use of specific construction techniques or materials as part of one specialty trade by a specialty. Generally, specialty contractors perform work that requires the use of no more than three trades.
  • AS 08.18.024. Specialty Contractors.
  • AS 08.18.171(16). Definitions. Specialty Contractor.
  • 12 AAC 21.200 – 21.570. Article 2. Specialty Contractor Trades.
• Handyman Contractor: Contractors who work on one project with an aggregate contract price of $10,000 or less, including all labor, materials, and other items, when the work is not part of a larger or major operation or otherwise divided into contracts of less than $10,000 to evade a higher bonding requirement, shall be $5,000.
  • 12 AAC 21.700. Article 5. Handyman Contractor.

Do I need a construction contractor license?

Professional Licensing Section: The only way to evaluate whether you need a license is to become familiar with the laws governing your profession. The statutes and regulations regarding contractors cover all circumstances in which you need a contractor license and provides for certain exemptions.

You may need a construction contractor or mechanical/electrical administrator license if:

• Your business name, signage, or advertising potentially indicates to the public that you are either a builder or contractor, or that you are qualified to engage in the contracting business.
• If you plan to submit bids to work as a contractor.
• If you work for a contractor, work as a subcontractor on smaller jobs for a general contractor, or subcontract work to a licensed contractor.
• If you perform mechanical or electrical installation.
• If you perform mechanical or electrical repairs or maintenance. The Department of Labor and Workforce Development may also require that certain electrical and mechanical work be performed by a licensed journeyman. (Anchorage: 269-4925, Juneau: 465-4871, Fairbanks: 451-2894)

Corporations Section: If your business structure is an entity (i.e. corporation, LLC, etc.), per Alaska Statute Title 10, you must register your entity; for more information go to: Corporations Section

Business Licensing Section: Prior to engaging in business activity, per AS 43.70, you must obtain an Alaskan Business License; for more information go to: Business Licensing Section

For more information, go to: How to Get Started

I'm a handyman, do I need a professional license?

Professional Licensing: In a move designed to provide consumer protection to Alaskans, the legislature passed a bill in 2014 extending the licensure and bonding requirement to all construction contractors—including those often known as “handymen” who work on smaller jobs.

While many handymen don’t consider themselves construction contractors, Alaska Statute defines a contractor as a person constructing, altering, repairing, moving, or demolishing a building, highway, road, railroad, or any type of fixed structure, including excavation and site development and erection of scaffolding. (AS 08.18.171(4))

Regardless of the size of the job, any business or person that falls under “a person who, in the pursuit of an independent business, undertakes or offers to perform, or claims to have the capacity to perform, or submits a bid for a project” is considered a construction contractor and must be registered, bonded, and insured to perform this type of work. (AS 08.18.171(4))

Starting January 1, 2015, a professional “General Contractor – Handyman” license for this type of work is required. If you are doing business under this license, the aggregate total of the project must not exceed $10,000 and you must carry public liability and property damage insurance as required by AS 08.18.101.

Corporations Section: If your business structure is an entity (i.e. corporation, LLC, etc.), per Alaska Statute Title 10, you must register your entity; for more information go to: Corporations Section

Business Licensing Section: Prior to engaging in business activity, per AS 43.70, you must obtain an Alaskan Business License; for more information go to: Business Licensing Section

For more information, go to: How to Get Started

In what order do I need to obtain my corporation registration (if applicable), professional construction contractor license, and business license?

Please review our How to Get Licensed page for detailed instructions.

When do I need to renew my license / what has changed with 2023 & 2024 renewals?

Effective 10/1/2023, all General, Residential, Specialty, Mechanical & Handyman Construction Contractors professional license expiration dates will become 9/30 of even-numbered years, as will the expiration dates for residential contractor endorsement holders. We will launch the renewal applications no later than 9/1/2024 and notices will be sent to your email or mailing address of record.

If your license previously had a 12/31/2023 expiration date, it has or will be extended to 9/30/2024. If your license has a 12/31/2024 expiration date, that date will remain. However, once renewed, your next expiration date will be 9/30/2026.

Please note that, as always, you are required to maintain bonding and insurance. However, we will not need updated proof of current bonding and insurance until the next renewal period. The change of the renewal dates has been shared with the Division of Insurance as well as the Department of Labor and Workforce Development.

If you have any questions on this change, please email license@alaska.gov or constructioncontractors@alaska.gov. If you need to check what your current expiration date is, please log in to your MY LICENSE account and/or utilize our online professional license search tool.

Do I need a residential contractor endorsement in addition to my contractor’s license?

Contractors undertaking the construction or alterations of a privately-owned residential structure of one to four units that is used or intended to be used as a human dwelling are required to hold in a Residential Endorsement in addition to a General Contractor with Residential Endorsement. For more information, review the following statutes and regulations:

• AS 08.18.025. Residential Contractors.
• AS 08.18.171(15). Definitions. Residential Contractor.
• AAC 21.650-21.695. Article 4. Residential Contractor Endorsement.

Do you have another question?

Please fill out our Customer Contact Form for the fastest response.

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