Residential Contractor FAQs

Registration for Residential Contractors is required as of April 1, 2023. Applications are open! Click here to read Act 182 and please check this page frequently for updates.

• When does the regulation of Residential Contractors begin?
• What are the different types of registration?
• I am an LLC without employees, how do I register?
• What does residential contracting mean?
• What is the difference between an individual registration and a business registration?
• Who is considered an employee?
• Who is required to register as a Residential Contractor?
• Who is NOT required to register as a Residential Contractor?
• Which business names am I required to register?
• I am a commercial contractor; do I need to register with OPR?
• Are subcontractors required to register with OPR?
• What are the fees to register?
• What is required to register?
• What if I have an individual registration and later need to change to a business registration?
• Do I need a new registration every time I enter into a new contract with a homeowner?
• What is required in a contract?
• Will OPR review contracts to ensure they comply with the law?
• Will Residential Contractors be allowed to collect a down payment?
• Will I need to submit proof of insurance?
• Will I be required to register if I am working on a property I own?
• Will I be required to register if I accept a job or work for consideration for family or friends?
• Can I avoid registration by taking items in trade, barter, or other non-cash compensation?
• What is considered unprofessional conduct?
• How do I file a complaint with OPR?
• What is CAP and when do I file a complaint with them instead of OPR?
• How does the Residential Contractor Registry protect homeowners?
• How will home contractors be protected against frivolous complaints?
• How will home contractors benefit from registration?
• Do I need to register with OPR if my business is already registered with the State of Vermont Corporations/Business Services?
• Do I need to register now if I do not currently have any contracts over $10,000.00 but may in the future?

When does the regulation of Residential Contractors begin?

Applications opened on December 1, 2022.

Residential Contractors are required to register by April 1, 2023.

What are the different types of registration?

Individual Registrations are for residential contractors who are self-employed and do not have any employees.

Business Registrations are for contractors who have employees working for them. Employees of a contractor under this registration are not required to register (see list of exemptions).

*You are not required to hold both registrations.

I am an LLC without employees, how do I register?

An LLC may register either as an individual or a business. Act 182 allows self-employed residential contractors without employees to register as individuals. However, LLCs may have additional considerations and nothing in the law prohibits LLCs from registering as a business. Please consult your attorney for guidance.

What does residential contracting mean?

Residential Contracting is defined as to build, demolish, or alter a residential dwelling unit, or a building or premises with four or fewer residential dwelling units and includes the following:

• Interior and exterior construction, renovation and repair
• Painting
• Paving
• Roofing
• Weatherization
• Installation or repair of heating, plumbing, solar, electrical, water or wastewater systems

What is the difference between an individual registration and a business registration?

Business registration are for those who have employees working for them. Employees of a registered business are not required to hold registrations with OPR as long as they are performing work under their scope of employment of the registered business organization.

Who is considered an employee?

Please visit the IRS website for guidance: https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

Who is required to register as a Residential Contractor?

Per 26 V.S.A. § 5501(b), any residential contractor who performs residential construction where the estimated value is $10,000 or more, inclusive of labor and materials.

Who is NOT required to register as a Residential Contractor?

• An employee of a residential contracting business that is registered with OPR.
• Any tradesperson, licensed, registered or certified by the Department of Public Safety, while working within the scope of the license, registration, or certification.
• A licensed engineer or architect, while working within the scope of the license.
• A business that performs residential construction if the work is performed primarily by or under the direct supervision of one or more employees who are individually exempt from registration (licensed tradespeople, architects, and engineers).
• A person delivering or installing consumer appliances, audio-visual equipment, telephone equipment, or computer network equipment.
• A person working on a structure that is not attached to a residential building.
• A person working in an emergency, provided the person registers as soon as reasonably possible.

Which business names am I required to register?

You may only do business and enter into contracts with the names (corporate and DBA) that you have registered both with SOS business services as a business and with OPR as a registered contractor.

If you use a name on a contract that is NOT registered with OPR, you are engaged in the unauthorized practice of the profession.

I am a commercial contractor; do I need to register with OPR?

No; but you are required to register if you accept a residential job where the estimated value is $10,000 or more inclusive of labor and materials.

Are subcontractors required to register with OPR?

If you are a subcontractor and you are contracted by another contractor and not the homeowner directly, you are not required to register with OPR.

If at any time, you directly enter into a contract with the homeowner where the estimated valued is at $10,000 or more, inclusive of labor and materials, you must register with OPR.

What are the fees to register?

Individual Registration fees - The registration fee for individuals is $75.00

Businesses Registration fees - The registration fee for business organizations is $250.00

What is required to register?

1. Online application with the Office of Profession Regulation.
2. Non-refundable application fee.
3. Be prepared to upload:
1. Documentation of name registered with Corporations and active status.
2. A copy of your minimum liability insurance coverage of $1,000,000.00 per occurrence and $2,000,000.00 aggregate.
4. Attest to use of a written contract.

Complete application instructions are found here

What if I have an individual registration and later need to change to a business registration?

If you hold an individual registration and later need to change to a business registration because you now have employees, OPR helps you make this update to your license. Please contact our office for assistance.

Do I need a new registration every time I enter into a new contract with a homeowner?

No.

What is required in a contract?

1. Price: One of the following provisions for the price of the contract:
   • maximum price for all work and materials;
   • statement that billing and payment will be made on a time and materials basis, not to exceed a maximum price; or,
   • a statement that billing and payment will be made on a time and materials basis and that there is no maximum price.
2. Work dates: Estimated start and completion dates.
3. Scope of work: A description of the services to be performed and a description of the materials to be used.
4. Change order provision: A description of how and when amendments to the contract may be approved and documented, as agreed by the parties. The parties shall document an amendment to the contract in a signed writing.

Will OPR review contracts to ensure they comply with the law?

No. OPR will not review contracts for compliance. It is the responsibility of the residential contractor to ensure any contract entered into with a homeowner meets the requirements of the law.

Will Residential Contractors be allowed to collect a down payment?

Yes, in one of the following ways:

1. If a contract specifies a maximum price for all work and materials or a statement that billing and payment will be made on a time and materials basis, not to exceed a maximum price, the contract may require a down payment of up to one-half of the cost of labor to the consumer, or one-half of the price of materials, whichever is greater.
2. If a contract specifies that billing and payment will be made on a time and materials basis and that there is no maximum price, the contract may require a down payment as negotiated by the parties.

Will I need to submit proof of insurance?

Yes, you will be required to upload a copy of your certificate of insurance with your initial and biennial renewal applications.

Will I be required to register if I am working on a property I own?

No.

Will I be required to register if I accept a job or work for consideration for family or friends?

Registration is required to do jobs in exchange for consideration of $10,000, inclusive of labor and materials, regardless of who the work is for.

Can I avoid registration by taking items in trade, barter, or other non-cash compensation?

No. Consideration is defined as the true value exchanged for your work, regardless of its form.

What is considered unprofessional conduct?

Unprofessional conduct statutes are found in 26 V.S.A. §5510 and 3 V.S.A. §129a.

How do I file a complaint with OPR?

Complaints of unprofessional conduct or unauthorized practice may be filed online at: https://sos.vermont.gov/opr/complaints-conduct-discipline/

What is CAP and when do I file a complaint with them instead of OPR?

CAP, the Attorney Generals Consumer Assistance Program can provide assistance with consumer issues beyond OPR's jurisdiction. See https://ago.vermont.gov/cap/.

OPR can address unlawful and unprofessional conduct by persons and businesses who are required to register as residential contractors. OPR is not empowered to award money damages, mediate disputes, inspect construction quality, or pursue misconduct by people who are not required to register as residential contractors.

How does the Residential Contractor Registry protect homeowners?

• Assurance: Homeowners will now have a registry to check to make sure the home contractor they plan to do business with is registered with the State and in good standing (that is, they haven’t engaged in unprofessional conduct, such as defrauding other customers). Homeowners will be able to see the reason for any sanctions on a home contractor’s registration and can, of course, still choose to work with that contractor.
• Complaints: Homeowners will be able to log a complaint with OPR. If it is found that a contractor commits unprofessional conduct, OPR will be able to restrict or revoke a registration. Notice of these sanctions will be publicly accessible. If the complaint involves criminal issues, OPR will investigate and referred to State’s Attorney’s for prosecution as needed.
• Protection: Over time, OPR’s process will help consumers identify violators and will provide a process for removing from the marketplace by revocation.
• Insurance: Registered home contractors are required to maintain insurance under this legislation. This will offer more protection to homeowners and more options for recouping damages.

How will home contractors be protected against frivolous complaints?

OPR has a process for conducting a thorough review and investigation of all complaints and only pursues sanctions against a registrant engaging in unprofessional conduct. Registrants also have due process rights in the OPR disciplinary process and can challenge any charges against them before an Administrative Law Officer.

OPR will not be a venue for resolving billing disputes. Unless there is evidence that a contractor engaged in unprofessional conduct, homeowners with billing disputes will be referred to the Consumer Assistance Program (through UVM and the AG’s office) and/or small claims court.

How will home contractors benefit from registration?

Requirements such as contracts and insurance can help contractors if they have a dispute with a homeowner.

Having a registry with the names of home contractors will help distribute information to everyone who is registered, such as when a new rule is proposed, or time sensitive messages needing to be shared.

Registration of Residential Contractors gives the Office authority to remove contractors who violate the law or defraud homeowners from the registry.

The Office through rulemaking is establishing voluntary certifications for registered contractors.

The registry may be a good tool for home contractors because consumers will have an additional resource for finding a home contractor in their area, and home contractors can advertise that they are “registered” to do business in the State.

Do I need to register with OPR if my business is already registered with the State of Vermont Corporations/Business Services?

Your registration to conduct business in the State of Vermont is different than your requirement to register with the Office of Professional Regulation (OPR). All Vermont businesses are required to register with the Secretary of State’s Corporations/Business Services Division. This is not your OPR registration.

Do I need to register now if I do not currently have any contracts over $10,000.00 but may in the future?

Nothing prevents you from registering now, however, registration is not required unless you enter into a contract with a homeowner for $10,000 or more inclusive of labor and materials.

For more answers to commonly asked questions, please visit our General FAQ page.

For more information, please contact us.