At a Glance: Maryland Contractor License
| Item | Details |
|---|---|
| Licensing Board | Maryland Home Improvement Commission (MHIC) |
| License Types |
|
| License Threshold | All home improvement work over $500 |
| Application Fee | $250–$700 |
| Exam Required | Yes |
| Exam Provider | PSI Exams |
| Exam Cost | $85–$120 |
| Experience Required | 2 years in home improvement trade |
| Insurance Required | General Liability ($50,000 minimum); Surety Bond required |
| License Renewal | Biennial; $250–$500 |
Step-by-Step: How to Get Your Maryland Contractor License
- Document 2 years experience in home improvement
- Pass MHIC exam via PSI
- Obtain liability insurance ($50,000 minimum)
- Post surety bond ($20,000)
- Apply through DLLR portal
- License issued in 6–8 weeks
Exam Requirements
Provider: PSI Exams
Cost: $85–$120
Topics covered: Maryland Home Improvement Law, Business practices
Most state contractor exams test two main areas: Business & Law (contracts, lien law, workers' comp, licensing regulations) and Trade Knowledge (construction practices, building codes, safety). Prepare for both sections — even experienced contractors struggle with the Business & Law portion without dedicated study.
Study Resources
- PSI Candidate Handbook (available on PSI website — free, covers exactly what's on the exam)
- ICC Study Guides for code-based exams
- Contractor's Business & Law Study Guide by Craftsman Book Company
- Online prep courses from Contractor Exam Prep and similar providers
Insurance & Bonding Requirements
General Liability ($50,000 minimum); Surety Bond required
Beyond what Maryland requires, consider these coverage types for complete protection:
- General Liability: Protects against third-party bodily injury and property damage claims
- Workers' Compensation: Required if you have employees; protects against job-site injury claims
- Commercial Auto: Your personal auto policy won't cover your work truck
- Inland Marine (Tools & Equipment): Covers tool theft from job site or vehicle
Reciprocity
Maryland has the following reciprocity agreements with other states:
- Virginia (limited)
Important: Reciprocity agreements change over time. Always contact the Maryland licensing board directly to confirm current reciprocity status before assuming your out-of-state license qualifies for expedited licensure.
Important Notes for Maryland
Maryland's MHIC license is required for all residential home improvement work over $500. Commercial contracting falls under local jurisdiction.
Frequently Asked Questions
-
Do I need a contractor license in Maryland?Yes. In Maryland, contractors are required to be licensed for projects valued at All home improvement work over $500. The licensing is managed by the Maryland Home Improvement Commission (MHIC). Operating without a license can result in fines and inability to enforce contracts.
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How much does a Maryland contractor license cost?The application fee for a Maryland contractor license is $250–$700. An exam fee of $85–$120 is also required for the PSI Exams exam. Renewal is Biennial; $250–$500.
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Is an exam required for a Maryland contractor license?Yes. Maryland requires passing the PSI Exams exam (cost: $85–$120) covering Maryland Home Improvement Law and Business practices. Passing the exam is a prerequisite before applying for your license.
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What insurance is required for a Maryland contractor license?Maryland requires the following insurance for contractor licensing: General Liability ($50,000 minimum); Surety Bond required. This is the minimum required — most contractors carry higher limits for additional protection on job sites.
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How long does it take to get a contractor license in Maryland?Getting a Maryland contractor license typically involves 6 steps: obtaining required experience (2 years in home improvement trade), passing the exam, securing insurance, and submitting the application to the Maryland Home Improvement Commission (MHIC). Processing times vary but most applications are decided within 4–8 weeks after submission.
Official Resources
- Maryland Home Improvement Commission (MHIC) — Official Website
- PSI Exams — Schedule Your Contractor Exam
- Contractor Insurance Guide
- Contractor Bonding Guide
- How to Start a Construction Business
Always verify requirements directly with the Maryland Home Improvement Commission (MHIC). Requirements, fees, and exam procedures change frequently — this guide is updated periodically but may not reflect the most recent changes.