North Dakota Contractor License Classes Explained
How North Dakota Classifies Contractor Licenses
Unlike states that classify contractors by trade specialty, North Dakota uses a purely monetary system. Your license class determines the maximum value of any single project you can bid on, contract for, or execute. The classification comes from N.D.C.C. § 43-07-07, and there are exactly four classes:
| License Class | Single Project Limit | Initial Fee | Annual Renewal |
|---|---|---|---|
| Class A | Unlimited | $450 | $90 |
| Class B | Up to $500,000 | $300 | $60 |
| Class C | Up to $300,000 | $225 | $45 |
| Class D | Up to $100,000 | $100 | $30 |
These limits apply to the total contract value of a single project — not your annual revenue. A Class D contractor can run 20 different projects at $90,000 each (that's $1.8 million in annual work) with no issue. But the moment they sign a single contract for $100,001, they're in violation.
The Per-Project Cap Is Absolute
The monetary ceiling isn't a suggestion — it's a legal bidding limit. A Class B contractor cannot bid on, contract for, or execute any single project valued at $500,001 or more, even if the work is well within their technical capability. Submitting a bid that exceeds your class limit can disqualify you and create legal exposure.
This matters most for contractors pursuing growth. If you started with a Class D license doing residential remodels and a general contractor offers you a $150,000 subcontract, you must upgrade your license class before accepting the work. The upgrade must happen before you submit a bid — not after you win it.
Clearing Up the Internet Misinformation
Multiple national trade reference sites incorrectly list North Dakota's class limits as $100,000 (B), $30,000 (C), and $4,000 (D). That's wrong. Those numbers don't come from the current statute.
The actual limits under NDCC § 43-07-07 are $500,000 (B), $300,000 (C), and $100,000 (D). The $4,000 figure is the separate threshold under NDCC § 43-07-02 that triggers the requirement to have any license at all — it's not a class limit.
If you're choosing a license class based on outdated internet data, you might file for a Class B at $300 when a Class D at $100 would have covered your work. Or worse, you might take on a $200,000 project with a Class C license you believed was capped at $300,000 (correct) versus a Class D you thought was capped at $100,000 but misread as $30,000 (wrong).
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Which Class Should You Choose
Your first-year project scope determines the right starting class:
Class D ($100 fee) makes sense if your work consists of residential remodels, small commercial tenant improvements, or subcontracting jobs where no single contract exceeds $100,000. This is the most cost-effective starting point for most new contractors.
Class C ($225 fee) fits contractors taking on mid-range residential builds, larger commercial renovations, or subcontracts that push past the $100,000 mark but stay under $300,000.
Class B ($300 fee) covers most commercial construction and larger residential custom builds. It's the ceiling for contractors who don't need to bid unlimited public infrastructure.
Class A ($450 fee) is required for any contractor bidding on projects with no upper value limit — large commercial builds, public works, institutional projects, and energy-sector construction in the Bakken region.
How to Upgrade Your Class
Upgrading is straightforward. Log into the FirstStop Portal, file for the higher class, and pay the fee differential. You don't need to re-submit your entire application from scratch. But the upgrade must be processed and approved before you submit any bid or sign any contract at the higher threshold.
There's no requirement to "earn your way up" through lower classes. A new contractor can apply directly for Class A if they're willing to pay the $450 initial fee and meet the standard documentation requirements (business entity registration, liability insurance, WSI verification).
Downgrading Saves on Renewal
If your work scope contracts — say you stop pursuing commercial builds and focus on residential work under $100,000 — you can downgrade at renewal. A Class A contractor renewing at $90/year could drop to Class D at $30/year if they genuinely don't need the higher cap. Just file for the lower class during your annual renewal through FirstStop before March 1.
Our North Dakota General Contractor License Guide includes a license class decision matrix that maps your project types and values to the right class, plus a step-by-step upgrade walkthrough.
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