Minnesota General Contractor License Requirements (2026)

The Minnesota Department of Labor and Industry (DLI) licenses residential building contractors and residential remodelers statewide under Minnesota Statutes Chapter 326B. Any person or company that contracts directly with a homeowner for new residential construction or remodeling work totaling more than $15,000 in a calendar year must hold a Residential Building Contractor or Residential Remodeler license. The license covers the business entity; the qualifying person must pass a PSI examination at 70% and complete pre-license training. DLI also operates the Contractor Recovery Fund, a pooled indemnity fund that every licensee contributes to in lieu of a traditional surety bond.

Governing Authority

This license is issued and enforced by Minnesota Department of Labor and Industry — Construction Codes and Licensing Division (DLI) pursuant to Minnesota Statutes Chapter 326B (Construction Codes and Licensing). DLI licenses residential building contractors, remodelers, electricians, plumbers, and mechanical (HVAC) contractors statewide; administers the Contractor Recovery Fund; and enforces the Minnesota State Building Code, Electrical Code, and Plumbing Code.

Official portal: https://www.dli.mn.gov/business/licensing-and-registration/
Address: 443 Lafayette Road N, St. Paul, MN 55155
Phone: (651) 284-5005

Eligibility Requirements

At a minimum the applicant has to be 18 years old and supply a valid Social Security Number. No Minnesota residency requirement. Out-of-state applicants must designate a Minnesota registered agent for service of process.

Good moral character

DLI reviews criminal history and prior license discipline on every application. Unpaid judgments from the Contractor Recovery Fund bar licensure until reimbursed.

Background investigation

Mandatory criminal history disclosure on the application; DLI may request court records for disclosed offenses.

Disqualifying conditions

Unpaid Contractor Recovery Fund judgments
Fraud or theft convictions related to construction
Prior DLI license revocation within the past five years

Experience & Education Matrix

Eligibility here is not measured in years of experience but by no minimum work-experience requirement for the business license; the qualifying person must pass the PSI exam and complete pre-license education, per the cited materials.

Accepted proof of experience or eligibility

PSI Minnesota Residential Contractor exam pass certificate
Pre-license education completion certificate from a DLI-approved provider
Certificate of Good Standing from the Minnesota Secretary of State (for entities)

Education substitution

Minnesota does not require prior experience, but most qualifying persons arrive with multiple years of field experience to pass the PSI exam.

Examination Structure

Examinations are administered by PSI Services LLC (under contract to DLI). The applicant must pass the following examination parts before the license can issue:

PSI Minnesota Residential Contractor Examination — business and law plus trade portion — 110 questions, 240 minutes, passing score 70%

Examination fee: $70 PSI examination fee paid on the day of testing.

Retake policy: Failed exams may be re-taken by paying a new $70 fee to PSI. Candidates must wait a minimum of one day between attempts. Applications remain valid for one year.

Insurance & Financial Security

The DLI requires a $20,000 contractor license surety bond to be on file before the license will issue.

General liability

Minimum $300,000 general liability insurance is required by Minn. Stat. §326B.805 (combined single limit or split limits acceptable).

Workers' compensation

Workers' compensation insurance is mandatory in Minnesota under Minn. Stat. §176.181 for any business with employees, regardless of hours or headcount.

Additional financial requirements

In place of a surety bond, every Residential Building Contractor and Remodeler contributes to the Contractor Recovery Fund at initial licensing and at each renewal. The fund indemnifies homeowners up to $75,000 per claim and $150,000 per licensee. A $20,000 surety bond equivalent is maintained through pooled contributions.

Application and License Fees

Fee	Amount
Application (non-refundable)	$260
Examination	$70
Initial license — sole owner	$260
Initial license — non-sole owner	$260
Renewal (every year)	$260

Maintenance & Renewal

Expect to renew the Minnesota Residential Building Contractor / Residential Remodeler every year. Renewal currently costs $260. All Minnesota Residential Building Contractor and Remodeler licenses expire on March 31 of every year regardless of initial issue date.

Continuing education: 14 hours of DLI-approved continuing education each year for the qualifying person, including at least 1 hour of energy code and 1 hour of building code content.

Downloadable Asset

2026 Minnesota General Contractor License Roadmap (PDF) — a printable step-by-step checklist for the application process.

Download the PDF roadmap →

Reciprocity and Endorsement

Minnesota does not accept the NASCLA Accredited Examination for this classification.

Reciprocal State	Accepted Exam	Conditions
Wisconsin	Bilateral registration recognition	Bilateral recognition for active Wisconsin Dwelling Contractors in good standing; Minnesota exam still required.
North Dakota	Bilateral registration recognition	Bilateral cooperation with the North Dakota Secretary of State contractor registry.
South Dakota	Bilateral registration recognition	Bilateral cooperation with South Dakota for active contractors in good standing.
Iowa	Bilateral registration recognition	Bilateral cooperation with the Iowa Division of Labor contractor registration program.
Illinois	Bilateral registration recognition	Bilateral cooperation with Illinois for active roofing and home repair contractors.

Minnesota does not accept the NASCLA Accredited Examination for residential building contractor licensure. Bilateral arrangements cover registration recognition and enforcement cooperation, not exam waivers. The PSI Minnesota Residential Contractor exam is still required.

Weighing more than one jurisdiction? The national hub compares General Contractor license requirements in every state — exam, bond, fee, and experience thresholds side by side.

Step-by-Step Application Roadmap

Determine whether you need the license. Any contractor doing residential work totaling more than $15,000 in a calendar year for a homeowner must be licensed under Minn. Stat. §326B.802.
Designate a qualifying person. Each licensed entity must name one qualifying person who passes the PSI exam and holds the credential on behalf of the business.
Complete pre-license education. The qualifying person must complete DLI-approved pre-license education before sitting for the PSI examination.
Pass the PSI Minnesota Residential Contractor exam at 70%. Score 70% or better on the combined business, law, and trade examination.
Secure $300,000 general liability insurance. Obtain a certificate of insurance meeting the Minn. Stat. §326B.805 minimum.
Submit the DLI application and Recovery Fund contribution. File the application with the license fee, Contractor Recovery Fund contribution, proof of insurance, and exam pass certificate.
Receive the DLI license. DLI issues the Residential Building Contractor or Remodeler license after the application and all supporting documents are verified. Licenses renew annually on March 31.

Study and Reference Materials

What follows are the regulator-cited and commonly used preparation references for this trade. They appear here for convenience only; CLR takes no compensation for them.

Minnesota State Building Code and Residential Code (current adopted edition) — Minnesota Department of Labor and Industry. Primary technical reference for the trade portion of the PSI exam.
NASCLA Contractors Guide to Business, Law and Project Management — Minnesota edition — NASCLA. Used by DLI-approved pre-license education providers for the business and law content.
Minnesota Statutes Chapter 326B — State of Minnesota Office of the Revisor of Statutes. Licensing law reference; frequently tested on the business and law portion.

Common Filing Mistakes

Based on the board's own instructions and the sources cited here, the problems below are what most often stall a Minnesota General Contractor application.

Misjudging the $15,000 threshold

The $15,000 threshold is calculated per calendar year across all residential work, not per project. Contractors who do multiple small jobs can cross the threshold unintentionally and operate unlicensed.

Skipping the Contractor Recovery Fund contribution

The Recovery Fund contribution is mandatory at initial licensing and renewal. DLI will reject applications that pay only the license fee.

Underinsuring general liability

The $300,000 minimum is set in statute. Certificates showing lower limits are rejected.

Missing the March 31 renewal deadline

All licenses expire on March 31 regardless of initial issue date. A lapse of more than 30 days forces reapplication.

Choosing the wrong classification

Remodelers cannot perform new home construction. Contractors who take new-build projects under a Remodeler license face disciplinary action and Recovery Fund liability.

Pre-Submission Checklist

These are the pieces to lock down before filing with DLI:

☐ DLI Residential Building Contractor or Remodeler application with $260 fee
☐ Contractor Recovery Fund contribution
☐ Certificate of $300,000 general liability insurance
☐ PSI Minnesota Residential Contractor exam pass certificate at 70%+
☐ Pre-license education completion certificate from a DLI-approved provider
☐ Workers compensation coverage certificate (if any employees)
☐ Certificate of Good Standing from the Minnesota Secretary of State (for entities)

Other Minnesota Trade Licenses

CLR covers other Minnesota trades as well — the published guides below may be more relevant:

Frequently Asked Questions

When do I need a Minnesota Residential Building Contractor license?

Any contractor performing residential construction or remodeling work totaling more than $15,000 in a calendar year for a homeowner must be licensed under Minn. Stat. §326B.802. Smaller jobs are exempt but must still comply with local permits and code.

What is the difference between a Residential Building Contractor and a Residential Remodeler?

A Residential Building Contractor can perform new home construction and remodeling. A Residential Remodeler can only perform work on existing homes. Both require the same DLI application and PSI exam; the classification is selected at application.

What is the Minnesota Contractor Recovery Fund?

A pooled indemnity fund operated by DLI that replaces the traditional surety bond. Every licensee contributes at initial licensing and renewal. Homeowners may file claims up to $75,000 per claim and $150,000 per licensee if a contractor fails to perform or commits fraud.

Does Minnesota accept the NASCLA exam?

No. DLI requires the PSI Minnesota Residential Contractor examination. NASCLA is not accepted.

How often does the Minnesota Residential Contractor license renew?

Every year on March 31. Renewal requires 14 hours of continuing education for the qualifying person (including at least 1 hour of energy code and 1 hour of building code).

Primary Sources

Regulatory requirements on this page are drawn from the official board, statute, and exam-provider materials listed below.

Verified 2026-05-28 · Next scheduled review 2026-08-26