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Obtaining a Contractor's License in Alaska
Obtaining your contractor's license in the state of Alaska means you're opening doors that go beyond simple handyman projects. The process of applying for a contractor's license can be intimidating. We are here to help make sense of all the requirements, forms, and applications that you must fill out before obtaining your license.
At Contractor Training Center, we'll teach you everything you need to know to obtain your license successfully. We offer a consulting session before you submit to make sure you apply to the right license and fill out the correct forms. The steps you take depend on the type of contracting work you'll be doing.
We will work with you from start to finish and review your application before you submit it to the state licensing agency. If your application gets rejected, we will go over your appeal/reapplying options. Unlike other agencies, we don't want you waiting for weeks or months to get your license. We are here to make this process as quick, simple, and stress-free as possible.
As you may be aware, the process of obtaining a license requires several steps. We are here to walk you through this process and help you pass the contractors exam your first time around.
Alaska State Law requires that every general contractor is licensed. Any individual who mainly performs residential remodels work and commercial projects less than 25% of the value of the structure needs to obtain a general contractor license without residential contractor endorsement. This option doesn't require an exam (more on this later).
For any individual who plans on building new commercial work, new home construction, or performs residential work that includes more than 25% of structure value, you will need to have a general contractor license with residential contractor endorsement. This type of license requires you to take an exam.
What You Can Expect From Us
At Contractor Training Center, you'll have all the tools and resources necessary to help get started with your Alaska Contractors License. We will walk you through every step of obtaining your license. This includes the preparation process, the types of exams available to you, and application assistance services.
Our instructors have a vast knowledge on this topic and will be able to answer any doubts that come to mind.
The Benefits of Having a Contractor's License in Alaska
There are two main benefits to obtaining a contractor's license in the state of Alaska:
Gives You Credibility
The first one is credibility. Potential clients are most likely to hire a contractor that is licensed as opposed to a handyman with no license or permit. Having a contractor's license makes you more reputable and helps build trust with clients.
Gives You a Higher Earning Potential
The second benefit of having a license is it gives you a higher earning potential. You're a contractor because you enjoy working within this industry, but you probably also love the income it brings. Without a license, you're preventing yourself from taking on larger projects that pay more. Not having a license means you'd have to turn down certain projects that would be good for your business.
Nine times out of ten, a client will pay a higher price to a contractor who's licensed as opposed to an unlicensed handyman. So, why limit yourself to more jobs and a higher earning potential? Get in touch with us today to learn how you can start the process of obtaining an Alaska license today.
How To Get a Contractors License in Alaska?
The process of obtaining a contractor's license in AK depends on the type of work you'll be conducting, hence the type of contractor you'll be.
Contractor Training will guide you in the right direction; however, here is an overview of what to expect in general.
Step 1: Business Licensing
The first step to obtaining your license is by filing your business online. The process is simple. You'll need to provide:
- Basic information about your business
- A NAICS code
- A one-year license filing fee of $50
You can license your business online at any time before applying for your Alaska contractors license.
Step 2: Decide What Type of License Your Business Needs
Before applying for a contractor's license and taking any exam, you need to determine which type of license you need. There are three types of licenses available to contractors, them being:
General Contractors License
This type of license is for anyone who plans on performing new home construction, any kind of commercial work, or residential remodel. General contractors licenses go as follow:
- General Contractor With Residential Endorsement license. It's important to keep in mind that for any home construction projects or residential work greater than 25% of the value of the property, the contractor will need to obtain a residential contractor endorsement along with their license.
- General Contractor Without Residential Contractor Endorsement license. This license is for contractors who complete work less than 25% of the structure's value. They are not required to obtain a residential contractor endorsement.
- General Contractor Handyman license. For projects valued under $10,000 (residential remodel projects or commercial work), they will receive a general handyman license.
These types of contractors perform work that doesn't require the use of more than three trades. For any project that involves the use of more than three trades, a general contractor license is required.
An approved list of specialty trades in Alaska can be found here. During the application process, you may also select "other specialty." However, you will need to provide a detailed description of what this means for your situation.
To obtain a mechanical contractor's license, you'll need to employ a licensed mechanical administrator. You'll only be able to perform the mechanical disciplines assigned to the administrator. This type of work includes:
- Sheet metal
Here is a list of Alaska's regulated mechanical professions.
Once you decide the type of work you'll be conducting, you can take the necessary steps to obtain the correct license.
Step 3: Complete Application
Your next step is filling out the application. All types of general contractors will follow a similar process. You can find the Construction Contractor Application here.
If you are applying for a residential endorsement, keep in mind that you'll also be required to pass a 16-hour course along with an exam. You can find more information on this within the application.
Moreover, for the application to be complete, the following is required:
- A completed, notarized, and signed Alaska Construction Contractors License Application.
- A surety bond. Use the following as a reference:
· General contractors: $25,000 bond
· General contractors with residential endorsement: $20,000 bond
· Specialty or mechanical contractor: $10,000 bond
· General contractors with handyman license: $5,000
- Liability insurance:
· $20,000 for property damage
· $50,000 for injury or death to one person
· $100,000 for injury or death to more than one person
- Workers' compensation (you may be exempt if you don't have employees)
Step 4: Pay Fees & Submit Application
Before you can submit your application, you need to cover two fees:
- $100 application fee
- $250 license fee
All fees must be paid via check or money order and be made payable to "State of Alaska." It will take about 15 business days for your application to be processed. As long as all documents are in order, you can expect your license to be issued. If it's not approved, you will receive a letter with correction instructions.
Step 5: Renew License
Alaska licenses need renewal every 2-years. General contractor licenses expire on December 31st of even years, while mechanical and specialty contractor licenses expire on December 31st of odd years.
Take the Exam
Now, you only need to take an exam if you are seeking to obtain a General Contractor With Residential Contractor Endorsement license. You'll need to take the Alaska Craftsman Home Program or an equivalent program. This certification costs $20 and you need to finish the process within two years before the date of the application.
You'll also need to take and pass the PSI Alaska Residential Contractor Endorsement Exam before you can apply for the which is 4 hours long and made up of 100 multiple-choice questions. The exam is an open book test. You will need a score of 70% to pass. Topics include:
- Moisture protection
- Among others
You can take this online, and it costs $150. After passing the exam, you have 12 months to apply for the residential endorsement.
Exam Times and Date
The General Contractor With Residential Contractor Endorsement exam is offered every three months in Juneau, Fairbanks, and Anchorage. You can view available times and dates here.
FREQUENTLY ASKED QUESTIONS
Your license will be valid for 2-years. General contractor licenses will expire on December 31st of even years, and mechanical and specialty contractor licenses expire on December 31st of odd years.
Yes, the state of Alaska requires contractor continued education.
No, it is not.
Yes, it is required.
At this time, there is NO reciprocity with other states.
You can register your business online at the Alaska Department of Commerce, Community, and Economic Development. Business licensing is made quick and simple. Click here to learn more about the forms you need to fill out to register your new company in AK. For tax division forms, visit this link.
Moreover, you want to ensure your company name isn't taken already. To do so, look up your company name in the Alaska Entity Search to find out if your name is available to register.
Yes, there are. Before submitting your application, you'll need to complete the Alaska Craftsman Home Program (ACHP) and then schedule an exam with the PSI examination services. To schedule your exam, visit psiexams.com or call 1-800-727-7204. Exam locations include Juneau, Fairbanks, and Anchorage.
After you complete and pass the residential endorsement exam, you'll need to submit the following:
- A notarized and signed residential contractor endorsement application
- Application and registration fee ($350)
- A copy of your exam results - issued by the testing provider
- Proof that you completed the Alaska Craftsman Home Program or the equivalent
- Name of the general contractor who is licensed and the license number
Alaska requires contractors to obtain a surety bond to guarantee that they'll comply with Chapter 18 of the Alaska Statutes (AS 08.18.071). This bond is a guarantee that they will pay taxes to the state, for labor and materials, and any amounts held against them for improper or negligent work.