Hiring a Licensed Contractor: Permit Rules That Depend on Licensing

Quick Facts

From our city pages and each city's open permit data (refreshed October 30, 2026).

Where the License Is Part of the Permit

Step-by-Step: What to Do

1. Find your project's rule on its city page and note whether a licensed contractor must pull the permit.
2. Verify the license with the licensing board.
3. Check the contractor's permit history in city records.
4. Write permit responsibility and the fee into the contract.
5. Hold the final payment until the final inspection is approved.

Owner-Builder Permits and Their Risks

Nashville lets an owner who occupies, or intends to occupy, a single-family home pull a building permit, and its Codes Department says that owner then becomes fully responsible for code compliance, including subcontractors' work. It advises homeowners who hire a contractor to have the contractor obtain the permit. Chicago lets an owner act as general contractor with Form 401 and ID showing they live at the address. California's Contractors State License Board says an owner-builder must pull all permits, pass inspections and supervise subcontractors, and may be treated as an employer if they hire unlicensed workers.

How to Check a Contractor Before You Sign

1. Ask which license number the permit will be pulled under, and look it up with the state or city licensing board.
2. Search the city's permit records for the contractor's recent permits; How to Look Up Building Permits for a House shows how.
3. Put in the contract who obtains the permit and that the fee is included.
4. Don't let work start until you have seen the issued permit.
5. Make sure the final inspection is passed before the last payment.

How to Verify a Contractor License

1. Ask for the license number and the name it is issued under.
2. Look it up on the issuing body's website. Depending on the trade and place, licensing can be state-level (for example, Illinois licenses roofing contractors) or city-level (Baltimore licenses HVACR contractors).
3. Check the status and expiration and that the license covers the work you need.
4. Ask for proof of insurance and check it is current.
5. Search permit records for the contractor's name to see past work.

What to Put in the Contract

Philadelphia's Start Right guide recommends a written contract that states who will obtain permits. A good contract also covers:

• Scope of work, materials and model numbers.
• Who applies for and pays for permits, and that the fee is itemized.
• Who schedules and attends inspections.
• Payment schedule, with the final payment after the final inspection passes.
• How changes (such as hidden roof-deck rot) are priced and approved.
• Warranty terms for labor and materials.

Red Flags

• "You don't need a permit for this" without pointing to the rule.
• Asking you, the homeowner, to pull the permit for work that requires a licensed contractor.
• Large cash deposits before the permit is issued.
• No license number on the quote or vehicle.
• No record of permits in a city that requires them for that trade.

Who Is Responsible When Something Goes Wrong

The permit holder is generally responsible for the work meeting code and for arranging inspections. That is one reason it is usually better for the contractor to pull the permit: if the work fails inspection, it is their job to correct it. If you pull the permit yourself, you take on that responsibility. Ask for proof that the final inspection passed before you make the last payment; Building Permit Inspections: What Inspectors Check and When explains what that looks like.

Doing Some Work Yourself

Many cities allow homeowners to do some work on their own home. Philadelphia, for example, allows a resident homeowner to do work except electrical, plumbing, sprinkler work, structural work affecting neighbors and flue-connected warm-air appliances. Rules vary by jurisdiction, so check yours, and remember that exempt work still has to meet code; see Work That Does Not Need a Building Permit: IRC R105.2 Exemptions.

Getting and Comparing Quotes

Ask at least three contractors for a written quote based on the same scope. When comparing, look beyond the total:

• Does each quote include the permit, and is the fee itemized?
• Do they agree on what the job requires? If one includes decking replacement or a new electrical circuit and others do not, ask why.
• Are materials and model numbers specified?
• Is the schedule realistic given permit and inspection times? See How Long Does a Building Permit Take? Real Timelines from 12 Cities.
• What warranty is offered on labor?

The cheapest quote is not always the one that leaves out the permit, but it is worth asking. A contractor who is comfortable discussing permits, inspections and licensing is usually one who deals with them routinely.

Building Departments in the Cities We Cover

Rules in this guide vary by jurisdiction. These are the official departments that issue residential permits in the 15 cities we track, with the city's open-data source for permit records. Each city page shows the rules for roofing, HVAC, solar, fence and deck work.

Before relying on any rule, read the department's current page or call its permit desk. Model-code sections cited here (such as IRC R105) are adopted locally, often with amendments.

Frequently Asked Questions