The rule: one skill or more than one
Minnesota sorts residential work into eight "special skills": excavation; masonry and concrete; carpentry; interior finishing; exterior finishing; drywall and plaster; roofing; and general installation specialties (Minn. Stat. 326B.802). DLI's summary: anyone who contracts directly with a homeowner (1 to 4 units) to provide work in more than one special skill must be licensed as a residential building contractor or remodeler; specialty contractors who provide only one skill don't need a state license, except roofers (MN DLI).
A typical handyman list crosses several of those categories. Hanging a door is carpentry, painting is finishing, patching drywall is drywall.
The $15,000 exemption
Someone whose gross annual receipts from this work don't exceed $15,000 can skip the license, but must get a certificate of exemption from DLI (Minn. Stat. 326B.805). The certificate expires each March 31, and it's not a license; holders can't advertise as licensed contractors (MN DLI exemption packet). Anyone who goes over $15,000 must surrender it and get licensed (326B.805). Cities can require their own license for exemption holders and specialty contractors (MN DLI FAQ).
Electrical and plumbing are separate
- Electrical. DLI says all electrical work, including minor repairs, must be done by licensed contractors and their licensed or registered employees, and that replacing a light fixture isn't even "minor repair" (MN DLI). Homeowners may do electrical work on the home they own and live in (Minn. Stat. 326B.33).
- Plumbing. Plumbing work requires a licensed plumber and a plumbing contractor license, with the same homeowner exception for your own home (Minn. Stat. 326B.46, MN DLI).
A general contractor's license doesn't cover electrical or plumbing. That's why we bring in licensed electricians and plumbers for those items.
What a licensed contractor gives you
- The Contractor Recovery Fund. If a licensed residential contractor commits fraud or fails to perform and you win a judgment, the fund can pay up to $100,000 per owner, $550,000 total per contractor (Minn. Stat. 326B.89). DLI: "If a homeowner hires an unlicensed contractor, they will not have access to the Contractor Recovery Fund" (MN DLI). The Attorney General says that's true even if the contractor is legally exempt (MN Attorney General).
- Insurance. Licensees must carry liability insurance of at least $100,000 per occurrence and $300,000 aggregate for bodily injury, plus property damage coverage (Minn. Stat. 326B.86).
- A written contract with a summary of the work, materials and total price (Minn. Stat. 326B.809).
- A license number you can check. It must be on ads, websites, business cards and contracts (Minn. Stat. 326B.87). Numbers starting with BC, CR or RR are licenses; IR is a registration, not a license (MN DLI).
Older homes: lead paint
Anyone paid to do work that disturbs paint in a home built before 1978 must be EPA lead-safe certified, including sole proprietors, unless the job disturbs no more than 6 sq ft per room inside or 20 sq ft outside (EPA). Window replacement is always covered.
Penalties
Unlicensed contracting that requires a license is a misdemeanor, and DLI can fine up to $10,000 per violation (Minn. Stat. 326B.082). An unlicensed person who knowingly violates the law also loses the right to file a mechanic's lien (Minn. Stat. 326B.845).
Check before you hire
Look up any contractor on DLI's license lookup. See how to check a contractor's license in Minnesota. cK Builders holds Minnesota Residential Building Contractor License #BC809999, and our handyman services are done under it.