Short answer: Exchange lists 12 general contractor companies in Minnesota. The Department of Labor and Industry licenses residential building contractors and remodelers who contract with owners of one to four unit housing in more than one special skill, with an exemption up to 15,000 dollars in gross annual receipts. Commercial-only firms register instead of holding a license. A mechanics lien ends 120 days after last work unless a statement is filed and served, and retainage on private contracts is capped at five percent.
License authority
The Minnesota Department of Labor and Industry (DLI) issues residential building contractor and residential remodeler licenses and runs construction contractor registration.
License threshold
A license applies to contracting directly with owners of one to four unit residential property in more than one of eight special skills, unless gross annual receipts stay at or under 15,000 dollars and a certificate of exemption is held.
Lien deadline
A mechanics lien ceases 120 days after the last work or material unless a lien statement is both filed and served on the owner within that period.
Payment and retainage
Retainage on a building and construction contract may not exceed five percent, and subcontractors are due payment within ten days of the payer receiving payment for undisputed work.
Code regime
The 2020 Minnesota State Building Code took effect on March 31, 2020 and is the statewide standard, but local enforcement depends on whether the municipality administers it.
Frost depth
State rule sets minimum footing depth at 5 feet in the northern Zone I counties and 3.5 feet in the southern Zone II counties.
Do general contractors need a license in Minnesota?
Minnesota licenses general contractors only on the residential side: a firm that contracts directly with the owner of one to four unit housing for work in more than one special skill needs a Department of Labor and Industry license. There is no state general contractor license for commercial building. The department instead asks commercial-only contractors to register through its construction contractor registration program, which is a different and lighter process than licensing.
Two residential license types cover general contracting. A residential remodeler may work only on existing structures. A residential building contractor may do everything a remodeler can and may also build new homes. The department lists eight special skills: excavation, masonry and concrete, carpentry, interior finishing, exterior finishing, drywall and plaster, roofing, and general installation specialties. A firm offering one skill generally does not need the license, with the exception of roofers, who are licensed separately. Owners who build or improve homes for resale or speculation are also inside the licensing regime.
Under section 326B.805 the license requirement does not reach a person whose gross annual receipts from specialty skills work do not exceed 15,000 dollars, provided that person holds a certificate of exemption obtained by affidavit. A holder who passes that figure in a calendar year has to surrender the certificate and apply for a license. Employees of licensees, material suppliers and owner occupants working on their own property are among the other exemptions. Readers should confirm the current list with the department.
What does it take to get a Minnesota residential contractor license?
A Minnesota residential building contractor or remodeler license requires a qualifying person who passes a written exam, liability insurance of at least 100,000 dollars per occurrence and 300,000 dollars aggregate, and payment into the Contractor Recovery Fund. The qualifying person has to be an owner, officer, member, partner, chief manager or managing employee of the business, and in general cannot act for more than one company unless the companies share at least 25 percent common ownership.
The department also asks for 25,000 dollars of property damage cover within the liability policy. Qualifying persons complete 14 hours of department approved continuing education to renew, including at least one hour on the energy code and one hour on business management. The department publishes a base license fee of 180 dollars plus a recovery fund fee that steps up with gross receipts: 320 dollars for firms under 1 million dollars, 420 dollars from 1 million to 5 million dollars, and 520 dollars above 5 million dollars. Fees change, so the department page is the place to check before applying.
The Contractor Recovery Fund, set up under section 326B.89, is the main consumer backstop behind the license. It compensates owners and lessees of one to four family residential property who hold a final court judgment against a licensee for fraud, conversion of funds or failure of performance. The statute bars payment of more than 100,000 dollars to an owner or lessee per licensee, and total payments to all claimants may not exceed 550,000 dollars per licensee. Attorney fees and interest are not covered, the application has to be served within two years after the judgment became final, and work by an unlicensed or exempt contractor sits outside the fund.
Which licenses, permits and registrations apply in Minnesota?
Requirement
Who issues it
When it applies
What it involves
Residential building contractor or remodeler license
Minnesota Department of Labor and Industry
Contracting directly with owners of one to four unit housing in more than one special skill
Qualifying person exam, liability insurance of 100,000 dollars per occurrence and 300,000 dollars aggregate, Contractor Recovery Fund fee, 14 hours of continuing education to renew
Certificate of exemption
Minnesota Department of Labor and Industry
Gross annual receipts from specialty skills work not above 15,000 dollars
Affidavit of expected receipts; certificate is surrendered if the figure is exceeded in a calendar year
Construction contractor registration
Minnesota Department of Labor and Industry
Commercial work, or a single special skill on residential work, by a firm without a residential license
Registration under section 326B.701; no exam; not available for separately licensed trades
Pre-lien notice
Given by the contractor or subcontractor to the owner
Residential property of up to four units and smaller non-residential work
Contractor notice in the contract or within ten days of agreement; subcontractor notice within 45 days of first furnishing
Mechanics lien statement
Filed with the county recorder or registrar of titles
Unpaid labor, skill, material or machinery on an improvement
Filed and served on the owner within 120 days after last work or material
Responsible contractor verification
Submitted to the public contracting authority
Public projects where the prime contract is estimated to exceed 50,000 dollars
Signed statement under oath that minimum criteria are met, with the same from first tier subcontractors
Do commercial contractors have to register with the state in Minnesota?
Commercial contractors in Minnesota that do not hold a residential contractor license register with the Department of Labor and Industry under the construction contractor registration program in section 326B.701, as do firms providing a single special skill on residential projects. Registration is not a competency license. There is no exam and it does not vouch for workmanship. It records who is operating as an independent construction business in the state.
Firms doing work that already carries its own license, certification or registration, such as boiler, electrical, elevator, high pressure piping, plumbing or residential building contracting, hold that credential and do not use the registration program. The department notes that renewals peak from October to December of odd numbered years and that processing can take up to 30 days in that window, against two to three business days at other times.
Public work adds a further screen. Under section 16C.285, the responsible contractor law, a contractor bidding on a publicly owned or financed project where the prime contract is estimated to exceed 50,000 dollars submits a signed statement under oath that it meets minimum criteria. Those cover workers' compensation and unemployment insurance compliance, tax registration, wage and hour and prevailing wage history over the prior three years, licensing, and freedom from suspension or debarment. Primes collect the same sworn statement from first tier subcontractors.
How long do I have to file a mechanics lien in Minnesota?
A Minnesota mechanics lien ends 120 days after the claimant's last work or last delivery of material unless a lien statement is filed with the county recorder or registrar of titles and served on the owner within that time. Section 514.08 requires both steps inside the same 120 days. Service is made personally or by certified mail on the owner, the owner's authorized agent or the person who entered into the contract with the contractor.
Lien rights on smaller projects also depend on pre-lien notice under section 514.011. A contractor dealing directly with the owner includes the statutory notice in the written contract, or delivers it personally or by certified mail within ten days after the work is agreed upon. A subcontractor or supplier gives its own notice no later than 45 days after first furnishing labor, skill or material. The notice tells the owner that it may pay subcontractors and suppliers directly and deduct the amount, or withhold amounts due until 120 days after completion unless lien waivers are provided.
The notice rules do not apply to residential property of more than four family units, or to non-agricultural, non-residential property where the work adds or involves more than 5,000 usable square feet of floor space. On those larger jobs the 120 day statement deadline is the main date to track. Lien practice is technical and the wording of the notice is prescribed, so claimants and owners should read the statute or take advice before relying on a summary.
What are the retainage and prompt payment rules on Minnesota construction contracts?
Minnesota caps retainage on a building and construction contract at five percent and deems every such contract to require payment to subcontractors and suppliers within ten days after the paying party receives payment for undisputed work. Both rules sit in section 337.10. Late undisputed amounts carry interest of 1.5 percent per month, and a party that has not received an undisputed payment within the ten days may suspend work until it arrives.
The owner releases all retainage no later than 60 days after substantial completion, and the contractor passes remaining retainage down to its subcontractors within ten days of receiving it. After substantial completion the owner may hold no more than 250 percent of the cost to correct or complete known work, plus the greater of one percent of the contract value or 500 dollars pending final paperwork. Withholding retainage for warranty work is prohibited. If the owner reduces retainage, the contractor reduces it for subcontractors at the same rate. The retainage subdivision does not apply to public agencies, which have their own rules, or to professional services contracts.
The same section voids clauses that make a Minnesota building and construction contract subject to another state's law or that send disputes to another state. On housing, chapter 327A adds statutory warranties that cannot be ignored in a contract: one year for workmanship and materials, two years for plumbing, electrical, heating and cooling installation, and ten years for major construction defects, with parallel periods for home improvement work.
Which building code applies in Minnesota and who issues permits?
The Minnesota State Building Code is the single statewide construction standard and supersedes any municipal building code, but permits and inspections come from the city, county or township only where that municipality administers the code. The current books are the 2020 Minnesota codes, effective March 31, 2020, covering the building, residential, energy, accessibility, plumbing, fire and existing building codes. The 2024 Minnesota Commercial Energy Code replaced the 2020 commercial energy provisions on January 5, 2024.
Enforcement is uneven by design. Under section 326B.121, a municipality that had an ordinance adopting the code in effect on January 1, 2008 has to keep administering it, except for municipalities under 2,500 population located outside a metropolitan county. Others may adopt the code by ordinance. In parts of rural Minnesota there is therefore no local building official and no building permit for some work, even though the code remains the legal standard for how the work is built. A contractor pricing work in an unfamiliar county should ask who the building official is before assuming a permit process exists.
Because the state amends the model codes, Minnesota editions differ from the base international codes. Supplements to the 2020 codes took effect in 2025, including adult changing station requirements on August 15, 2025 and window cleaning safety features on November 7, 2025. Plan reviewers will expect the Minnesota chapters, including chapter 1303 for state specific provisions.
How deep do footings have to be in Minnesota and how does winter affect construction?
Minnesota rule 1303.1600 sets minimum footing depth for frost protection at 5 feet in the northern Zone I counties and 3.5 feet in the southern Zone II counties, which shapes excavation cost and foundation design statewide. Zone I includes St. Louis, Itasca, Beltrami, Cass, Crow Wing, Otter Tail, Clay and Cook counties among others. Zone II includes Hennepin, Ramsey, Dakota, Anoka, Washington, Olmsted, Stearns and Blue Earth. The county, not the latitude of the site, decides the zone.
The difference is not trivial on a budget. A project in Duluth or Bemidji carries eighteen inches more foundation wall, excavation and backfill than the same plan in the Twin Cities or Rochester, and designers working across both zones cannot reuse a foundation detail without checking it. Additions and decks attached to a house are held to the same frost depth logic, which is a frequent source of correction notices on remodeling work.
Winter also drives sequencing. Contractors in Minnesota commonly aim to have foundations in and the shell closed before deep frost, and price ground thaw, heated enclosures and cold weather concrete protection when a start slips into winter. Owners comparing bids for a late autumn start should check whether winter conditions are included or carried as an allowance, since that single line often explains a gap between otherwise similar numbers.
Where can I verify a license and check the source in Minnesota?
Every figure and rule on this page can be checked against the primary source. These are the offices that publish them. Confirm current requirements directly before you rely on any of them:
What is the difference between a residential building contractor and a residential remodeler in Minnesota?
Both licenses are issued by the Department of Labor and Industry. A residential remodeler may work only on existing structures. A residential building contractor may do all remodeler work and may also build new homes. Owners planning new construction should check that the firm holds the building contractor license.
Can a contractor work in Minnesota without a license if the job is small?
The test is annual, not per job. A person whose gross annual receipts from specialty skills work do not exceed 15,000 dollars may hold a certificate of exemption in place of a license. Work by an exempt contractor is not backed by the Contractor Recovery Fund.
How much can a homeowner recover from the Contractor Recovery Fund?
Section 326B.89 limits payment to 100,000 dollars to an owner or lessee per licensee, and 550,000 dollars in total across all claimants per licensee. A final court judgment against the licensee comes first, and the application is served within two years after the judgment became final.
What warranties come with a new home in Minnesota?
Chapter 327A gives statutory warranties running from the warranty date: one year against faulty workmanship and defective materials, two years against faulty installation of plumbing, electrical, heating and cooling systems, and ten years against major construction defects. They pass to later buyers of the home.
When does retainage have to be released in Minnesota?
Under section 337.10 the owner releases all retainage no later than 60 days after substantial completion, and the contractor pays remaining retainage to subcontractors within ten days of receiving it. Retainage may not exceed five percent and may not be held for warranty work.
Does a subcontractor have to send a pre-lien notice in Minnesota?
On residential property of up to four units and smaller non-residential work, a subcontractor or supplier gives the owner written notice no later than 45 days after first furnishing labor, skill or material. Notice is not required where work involves more than 5,000 usable square feet of non-residential floor space.
Is a building permit needed everywhere in Minnesota?
No. The State Building Code applies statewide, but permits are issued only where a municipality administers the code. Municipalities under 2,500 population outside a metropolitan county are not obliged to enforce it, so some rural areas have no local building official. Confirm with the city, township or county first.
