Understanding the scope of work permitted under a Class B contractor license is essential for general contractors, business owners, and subcontractors seeking clarity on project eligibility and legal boundaries. In the following article, we’ll explain the definition of a Class B contractor, break down what types of construction activities are allowed (and not allowed), and compare Class B to Class A and Class C licenses.
We’ll also walk through common misconceptions, licensing requirements, and how CCIS supports contractors with the right coverage.
What Is a Class B Contractor?
A Class B contractor is a license classification for general contractors.
In Arizona, for example, Class B contractors perform most types of building and sub-trade construction work associated with the completion of buildings, including residential and commercial projects. They work on new construction, additions, and supervision of related work. However, certain specialized areas, like electrical, plumbing, and HVAC, will require separate licenses.
In California, Class B contractors manage construction projects that involve two or more unrelated building trades. They typically work on constructing or altering buildings, roads, parking facilities, railroads, and other structures.
In Nevada, Class B contractors are also general contractors. They are licensed to perform most construction and remodeling work on buildings, including new construction for residential and commercial structures. There are some project limitations based on the height and number of stories of a structure.
In Oregon and Washington state, Class B contractors are also individuals who work on most residential and commercial building projects.
What Are the Requirements to Become a Class B Contractor?
To obtain a Class B license, individuals usually need to demonstrate experience, pass exams, and obtain a Contractor License Bond. They must meet requirements that typically include the following, depending on the state and local jurisdictions:
- Be at least 18 years old
- Demonstrate verifiable experience in the field (three to four years) through employment records, references, and other documentation
- Pass law/business and trade-specific exams, which vary by state and licensing board
- Purchase insurance such as General Liability and Workers’ Compensation, if the contractor has employees; specific requirement amounts for General Liability will depend on the state
- Secure a surety bond, which acts as a guarantee that the contractor will fulfill contractual obligations
In some states, pre-license education or specific training courses may be required. Criminal background checks and fingerprinting may also be part of the application process. Additionally, contractors may also need to register their business, obtain local licenses, and secure necessary permits for their projects.
What Is the Application Process?
An individual typically must complete and submit an application form, provide supporting documentation (such as experience and insurance), and pay the required fees to the state licensing board.
What’s the Difference Between Class B and Class A Contractors?
A Class B contractor typically works on moderate-scale construction, up to a certain number of stories, such as residential homes and small to midsize commercial buildings.
On the other hand, Class A contractors are authorized to work any type or size of construction project, including large-scale commercial and residential builds. This includes high-rise buildings, extensive commercial facilities, and complex residential developments. They can also work on public works-type projects involving overpasses, underpasses, bridges, airports, power plants, pipelines, railroads, and highways. Class A contractors may require more comprehensive exams and more experience, depending on the state. They may be required to show greater financial responsibility and bonding capacity.
What’s the Difference Between Class B and Class C Contractors?
Class C contractors are licensed to perform one specific trade or craft, such as plumbing, electrical, HVAC, roofing, painting, flooring, etc. They typically focus on their specialty; for example, wiring a building, installing a furnace, or tiling a floor. Class C contractors, unlike Class B contractors, cannot act as a general contractor or oversee construction that involves multiple trades.
Common Misconceptions About Class B Contractors
Some common misconceptions involving Class B contractors include:
- They are not as skilled as other construction professionals.
- Their work is not as crucial as that of other contractors.
- They aren’t subject to the same regulations as other contractors.
These aren’t true. Class B contractors play a vital role in the construction industry and are subject to the same legal and safety requirements as other professionals in the field. They work in specialized trades and require a high degree of talent and precision. They are also required to comply with applicable building codes, safety regulations, and licensing requirements.
CCIS Provides Bonds and Insurance Coverage to Contractors
CCIS offers surety bonds and insurance coverage to Class A, B, and C contractors in Arizona, California, Nevada, Oregon, and Washington state. Our team is well versed in state requirements, including the bonds needed, to obtain a license and the applicable Contractors Licensing bond. We can also provide Bid, Performance, Payment, Permit, and other bonds that contractors require to win and secure a job.
Additionally, we can provide you with General Liability and Workers’ Compensation coverage, whether required by the state or specified in the project’s contractual agreement. We can help you comply with state requirements, including obtaining the certificates of insurance (COI) you need to demonstrate that you are insured.
We can also provide you with Contractors Equipment & Tool coverage, Builder’s Risk insurance, and Excess Liability to help protect your operation and its assets.
Frequently Asked Questions
Q. Can a Class B contractor build a house from the ground up?
A. A Class B contractor can manage the entire process of building a house, including framing, coordinating different trades (plumbers, electricians, etc.), and overseeing the overall project.
Q. What’s the difference between Class A and Class B?
A. Class A contractors typically oversee and work on large-scale projects, while a Class B contractor works on moderate-scale construction.
Q. Can Class B contractors hire subcontractors?
A. Class B contractors typically oversee and manage projects that involve two or more unrelated building trades. They’re responsible for coordinating the job site and ensuring the project stays on schedule and complies with building codes. As they often do not hold specialty licenses (e.g., electrical, HVAC, plumbing), they hire licensed Class C subcontractors to perform that type of specialized work, unless they hold those additional licenses themselves.
Note: Please note that bonds are subject its terms and statutory requirements. Thus, benefits of the bond can only be afforded based on the terms of the bond and as provided by appliable state or federal law.