Minnesota Contractor Licenses and Permits

Minnesota law requires residential building contractors, residential remodelers and residential roofers to be licensed. A remodeler or roofer may instead hold a license in another applicable category, such as building contractor 1. An unlicensed person may not act as, or present themselves as, one of these contractors for pay unless an exemption applies 1.

A remodeler uses at least two special skills, such as carpentry, drywall or masonry. Residential real estate means buildings for one to four families, including detached garages 2. The Attorney General's handbook says the license generally covers work on homes of up to four families 9.

Exemptions are real, so do not assume every unlicensed worker is breaking the law. The statute exempts employees of a licensee, suppliers who only furnish materials, specialty contractors providing only one special skill, and licensed trades such as plumbers and electricians doing their licensed work 1. It also exempts architects and professional engineers practicing their profession 1.

Two exemptions matter most to homeowners. First, an owner who builds or improves a home they will live in, or keep as a rental after the work, is exempt. Property improved for resale or speculation is not covered, and an owner who works on more than one property in any 24-month period is presumed to be speculating unless the properties are kept as rentals 1. Second, a person whose gross annual receipts from licensable specialty skills stay at or under $15,000 can hold a certificate of exemption. If receipts pass $15,000 in a year, the certificate must be surrendered and a license obtained 1.

A $15,000 exemption holder is not a licensed contractor. The Recovery Fund described below requires a licensee [6][9].

Go to the Department of Labor and Industry (DLI) license lookup, choose "Continue as guest," and enter the full license number. No account is needed 4. The result shows license status, continuing education completion, work experience, plumbing bond holders and whether enforcement actions exist against the license 4.

Ask the contractor for the number first. DLI says residential building contractor, remodeler and roofer license numbers start with BC, CR or RR, while numbers that start with IR are registrations that do not carry the same protections 5. DLI also suggests checking the state court system for lawsuits or judgments and checking the Better Business Bureau 5.

The Attorney General's handbook adds that licensed contractors must show their license number on contracts and in advertising 9. If the number is missing from the paperwork, ask why before you go further.

Look up the number yourself rather than relying on a screenshot or a PDF the contractor sends. Check that the name on the license matches the name on your contract. A contract signed with an LLC should name the LLC, and the license lookup should show that same entity.

The license shows that the state has issued it and whether discipline exists. The lookup page lists status, continuing education, experience and enforcement 4. It does not list workmanship quality, customer satisfaction or whether the firm wants your project. Use references and your own judgment for those.

The licensing statute gives the commissioner grounds for sanctions. They include poor supervision or negligent work that harms the public, keeping construction payments instead of paying workers and suppliers, failing to provide lien waivers, and pulling permits under another person's license number 23. A clean record means no action has been recorded. It does not mean the firm has done work like yours before.

The fund can pay an owner who holds a final court judgment against a licensed residential contractor or remodeler, where the judgment rests on fraud, deceptive or dishonest practices, conversion of funds or failure of performance under a direct contract with the licensee 6. The statute covers actual, direct out-of-pocket loss on Minnesota residential real estate. It does not cover attorney fees, litigation costs or interest 6.

The statute caps payment at $100,000 per owner and $550,000 for all owners combined, per licensee 6. The Attorney General's handbook states different caps, $75,000 per claimant and $300,000 per contractor 9. These two sources conflict. The statute is the primary source, but the handbook may be out of date or describe an older version, and we could not resolve it. Confirm current limits with DLI.

Timing: the application must be served within two years after the judgment becomes final. You must have diligently pursued the contractor and anyone else liable, and the commissioner has 120 days from a complete application to act. You then have 30 days to ask for a hearing if you disagree with the order 6.

The practical point is that the fund is a last resort after a lawsuit, not a way to get quick money back. It requires a licensed contractor, so hiring an unlicensed one removes this option 59. Licensees, not owners, pay the fund fee when they apply or renew 6.

A licensee's agreements must be in writing. That includes proposals, estimates, bids, quotes, contracts, purchase orders and change orders. Each writing must contain a detailed summary of the services, a description of the materials or a list of standard features, and the total price or how it is calculated 7.

Before the agreement is signed, the licensee must give you written performance guidelines, and they must be in the agreement or incorporated by reference. Both parties sign and date all agreements. The licensee must give you, at no charge, a signed and dated copy of each agreement, the performance guidelines and each mechanic's lien waiver 7.

DLI's hiring tips add practical items: a payment schedule, firm deadlines with consequences for missing them, and a rule that every change is written up as a change order you sign 5. The Attorney General's handbook says to be wary of large upfront demands, and it describes progress payments tied to completed work as a reasonable alternative. It also says you can hold back final payment until inspections pass and the job is finished 9.

Never sign a blank contract, an oral estimate, or an authorization form just to let a salesperson inspect your home or talk to your insurer. DLI warns these can be binding contracts 5.

Chapter 327A sets warranties for home improvement work sold to an owner. For major structural changes or additions, the contractor warrants workmanship and materials for 1 year and major construction defects for 10 years. Faulty installation of plumbing, electrical, heating or cooling systems is covered for 2 years. All other home improvement work carries a 1 year warranty. Each is tied to defects that violate building standards 8.

The warranties survive a transfer of title and are not affected if a corporate or LLC contractor later dissolves 8. The handbook adds that you must give written notice of a defect within six months of discovering it. The contractor must inspect within 30 days and make a written repair offer within 15 days after the inspection. You generally cannot sue until 60 days after that offer, or until you finish DLI's dispute process 9.

The handbook says the statutory warranties can be waived only in limited situations and that any warranty in your contract is on top of them 9. The statute page we loaded did not address waiver, so read your contract for a waiver clause and ask a lawyer.

Worked example (illustration, not legal advice): a kitchen remodel with a new gas range and a rerouted sink supply. The plumbing and heating-related installation falls under the 2 year period, a cabinet door that was hung badly falls under 1 year workmanship, and a structural change such as removing a bearing wall falls under the 10 year major defect period 8. Write the dates on the day of final payment so you can see when each period ends.

A contractor who contracts with the owner and will use subcontractors or suppliers must include a lien notice in the written contract, in bold type of at least 10 points if printed or capital letters if typed. Without a written contract, the contractor must deliver the notice personally or by certified mail within 10 days after the work is agreed 18. A contractor that omits the notice loses the lien and related remedies 18.

The notice tells you that anyone supplying labor or materials may file a lien if not paid. You may pay those people directly and deduct the amount from the contract price, or hold back payment until 120 days after completion unless you receive signed lien waivers 18. Subcontractors and suppliers must send their own notice within 45 days after first furnishing labor or materials, and the notice says no lien may be filed if you paid the contractor in full before you received it 18.

This is why lien waivers matter. The licensing statute lists failing to provide lien waivers among the grounds for sanctions 23, and the contract statute requires the contractor to give you a copy of each lien waiver 7. Ask for a waiver from each subcontractor and supplier with every progress payment, and ask a lawyer before you make a final payment on a large job.

Cancellation: a home solicitation sale can be cancelled until midnight of the third business day after the sale, by written notice to the address in the sales agreement. A mailed notice takes effect when deposited in the mail 20. A home solicitation sale involves a seller who personally solicits the sale and an agreement made somewhere other than the seller's place of business 19. The definition excludes buyer-initiated emergency purchases with a separate signed waiver, and buyer-requested repair visits 19. DLI says that if the contractor contacted you first for a home improvement job, you generally have three business days to cancel 5. If you called the contractor, this right may not apply.

The licensing statute does not address permits 1. City pages and your contract fill that gap. The Attorney General's handbook says that if the contractor pulls the permits, the contractor is generally responsible for code compliance, and if you pull them, you are 9.

Minnetonka shows why this matters. It issues building permits to state-licensed contractors, or to homeowners for homesteaded property, and a homeowner who signs the application acknowledges that they will personally and physically perform all of the work 11. If a contractor asks you to pull a Minnetonka permit in your own name, stop and call the city first.

The licensing statute also lists obtaining permits through another person's license number, or getting permits for unlicensed people, as grounds for sanctions 23. Ask the contractor to state in the contract which permits they will apply for, who schedules each inspection, and who pays each fee.

The state sets the frame. Under Minnesota Rules 1300.0160, permit fees are based on valuation, which the applicant estimates and the building official finally sets. Valuation covers all construction work, including materials, labor and permanent mechanical, electrical, gas and plumbing systems. One and two family maintenance permits such as roofing, siding and windows may use a fixed fee. Each municipality sets its own plan review fee and refund policy 17.

Every municipal permit carries a state surcharge set by Minn. Stat. 326B.148, added to the city fees 17. Municipalities must keep fees fair, reasonable and proportionate to the cost of the service. Work started without a permit can draw an investigation fee that cannot exceed the permit fee 17.

Minn. Stat. 326B.153 also states a statewide base fee table and sets plan review at 65 percent of the building permit fee for the plan reviews it covers. A city may adopt its own schedule 16. For comparison, the state table's fee for a $50,001 to $100,000 project is $764.15 for the first $50,000 plus $8.45 per additional $1,000 16.

The code that governs the work is the Minnesota State Building Code. Minn. Rules 1309.0010 adopts the 2018 International Residential Code with Minnesota amendments, replaces the energy chapters with Minnesota Energy Code chapters 1322 and 1323, and keeps the IRC smoke alarm and carbon monoxide alarm sections 21. DLI's contractor page refers to the 2020 Minnesota State Building Codes 3. We did not load the energy code, frost depth, egress or radon rules, so this page does not state them.

If your house was built before 1978, the EPA's lead renovation rule generally requires firms paid to disturb painted surfaces to be certified and use lead-safe practices. Owners working on their own homes are generally not covered, but the rule applies to renovation for sale or rental use 22. Minnesota licensees doing renovation on pre-1978 homes must also follow the requirements in section 326B.106, subdivision 14 1. Ask any contractor on an older home for their lead-safe certification.

Wayzata publishes a 2026 building permit fee schedule. Fees follow valuation, which includes materials and labor even when you do the work yourself. The schedule says valuations are compared with approximate square foot costs and will be adjusted if they look wrong 14. Fees are paid when the permit is issued, and online or card payments carry a 3 percent convenience fee 10.

The building permit table 14: $47.25 for $1 to $500. For $501 to $2,000, $47.25 plus $3.58 per additional $100. For $2,001 to $25,000, $80 plus $16 per additional $1,000. For $25,001 to $50,000, $450 plus $11.75 per additional $1,000. For $50,001 to $100,000, $738.25 plus $8 per additional $1,000. For $100,001 to $500,000, $1,139.50 plus $6.50 per additional $1,000.

Added fees where they apply 14: plan review at 65 percent of the permit fee, plan review of a residential interior remodel at 35 percent, similar plans at 25 percent, and a state surcharge of .0005 of valuation with a 50 cent minimum. The schedule also lists city and regional sewer and water connection charges, which apply to new connections and not to most remodels, so ask the city.

Other policies 14: up to 80 percent of the permit fee can be refunded if no work has begun. Starting work without a permit triggers an investigation fee equal to the permit fee. Reinspections, after-hours inspections and extra review for revisions are charged at the city's hourly cost.

Worked examples (illustration, not a quote). We use 2025 Minneapolis job costs from the Cost vs. Value report as stand-in valuations 24. The rounding follows the schedule's "or fraction thereof" wording: each partial $1,000 counts as a full $1,000 14.

Minor kitchen remodel, $28,196 24. Bracket $25,001 to $50,000: $450 + ($11.75 x 4) = $497.00. Plan review at 35 percent of $497.00 = $173.95. Surcharge .0005 x $28,196 = $14.10. Total about $685.05. If the city instead applies 65 percent plan review ($323.05), the total is about $834.15.

Major kitchen remodel, $81,187 24. Bracket $50,001 to $100,000: $738.25 + ($8 x 32) = $994.25. Plan review at 35 percent = $347.99. Surcharge = $40.59. Total about $1,382.83, or about $1,681.11 with 65 percent plan review.

Primary suite addition, $175,685 24. Bracket $100,001 to $500,000: $1,139.50 + ($6.50 x 76) = $1,633.50. An addition is not an interior remodel, so use 65 percent plan review of $1,061.78. Surcharge = $87.84. Total about $2,783.12. Plumbing, mechanical and electrical permits and any survey, tree plan or right-of-way permits would be extra.

These figures rest on stand-in valuations and one reading of which review percentage applies. Wayzata's valuation for your project may differ, so ask the city for its calculation.

Wayzata: building permits are required for most projects, including additions, structural changes, roofing, siding and window replacements. Painting, flooring, kitchen cabinets and detached storage buildings of 120 square feet or less are exempt. Contractors must show evidence of a current state license 10. Since October 24, 2025, building, HVAC and plumbing inspections are scheduled only through Metro West, and electrical permits are issued and inspected by the State Board of Electricity 10. The page lists no turnaround time for plan review 10. Some Wayzata mailing addresses are in other cities, so confirm the property is in Wayzata first 10.

Wayzata's plan review guideline for new homes, additions, pools and accessory structures says plans missing required items are rejected without feedback. It asks for a survey signed by a licensed surveyor or engineer, a tree preservation plan before other permits can issue, erosion control, and separate right-of-way permits for work in the street, a dumpster or sidewalk closure 15. Add this lead time to a Wayzata addition.

Plymouth: additions and new construction need a plot plan based on a current survey, plus scaled plans, and staff may require an architect or engineer to prepare them. Simple permits such as residential electrical, plumbing, mechanical, re-siding and re-roofing can be issued at application, while other residential applications take up to five working days. The city asks you to apply well ahead of your start date, especially in summer, and an inspection record card must stay on site until final approval 12. Plymouth's fee schedule: not found. The city site returned an access error to our research tool when we tried to load the fee documents, and we did not find a Plymouth fee document we could read. Search results also surfaced an older Plymouth fire-fee sheet, which we did not use.

Minnetonka: a building permit is required for construction, alteration, repair, enlargement and more, including additions, decks and finishing previously unfinished space. Applications go through the city's online system 11. The city also warns of scams aimed at people with active land-use applications and permits, so confirm any payment request directly with the city 13. Minnetonka's fee schedule and review time: not found. The city site also returned an access error on recheck, and search snippets conflicted on plan review percentage, so we did not use them. The Plymouth and Minnetonka descriptions, and Wayzata's list of exempt projects and license requirement, come from our first read of those pages and were not rechecked today.

Call each city's permit desk and ask for the written fee calculation for your valuation before you compare bids.

Confirm permit and license rules with your city, DLI or a lawyer; this guide is an AI research draft and not legal advice.

Work through these steps in order. Stop at the first one that fails.

• Step 1: get the full legal name and license number, and look it up yourself on the DLI lookup. Confirm it starts with BC, CR or RR, the status is current and no enforcement action is shown 45.
• Step 2: if the person says they are exempt, ask which exemption. A $15,000 certificate, a single specialty skill or an owner exemption is not a general contractor license 1.
• Step 3: read the contract against the statute. It needs a detailed summary of services, materials, the price or its basis, signed performance guidelines, a lien notice, and signed copies for you 718.
• Step 4: put in writing who applies for each permit, who schedules each inspection and who pays each fee. Do not sign a homeowner permit application for work a contractor will do 11.
• Step 5: if the contractor contacted you first, note the 3 business day cancellation window on your calendar 520.
• Step 6: ask for a lien waiver with every progress payment and keep a final holdback until inspections pass 918.
• Step 7: ask your city for its fee calculation, and treat any figure on this page as an estimate 14.
• If any step fails and the contractor will not fix it in writing, find another contractor.