Contractor License Requirements in Maryland

Maryland requires contractor licensing for construction work. The licensing process is overseen by the Maryland Home Improvement Commission (MHIC). Maryland requires licensing through the Home Improvement Commission for residential work. A $20,000 surety bond or equivalent security is required. Contractors must also contribute to the Home Improvement Guaranty Fund. Commercial construction does not require state licensing, but many jurisdictions have local requirements.

Important

Never hire a contractor who cannot provide a valid license number. A legitimate contractor will have no hesitation sharing their license credentials for you to verify independently. If a contractor refuses, discourages you from checking, or makes excuses, treat that as a serious red flag.

Maryland Home Improvement Commission (MHIC)

Search by: MHIC number, Company name, Owner name

Follow these steps to verify a contractor's license in Maryland:

1. 1
   Go to the MHIC license searchVisit the Maryland Home Improvement Commission license search page through the Department of Labor. All home improvement contractors in Maryland must be licensed through the MHIC.
2. 2
   Search by MHIC number or company nameEnter the contractor's MHIC license number, company name, or owner name. The MHIC number is the most reliable search method. Results show license status, bond information, and insurance status.
3. 3
   Verify the license and bond statusConfirm the license is active. Maryland requires a $20,000 surety bond or equivalent security for all home improvement contractors. The search results show whether the bond is current.
4. 4
   Check the Guaranty Fund statusMaryland maintains a Home Improvement Guaranty Fund that compensates homeowners for losses caused by licensed contractors. Verify the contractor has contributed to the fund and is in good standing.
5. 5
   Review complaint historyCheck for any complaints filed with the MHIC. The commission investigates complaints and can impose sanctions including fines, license suspension, and revocation. A pattern of complaints should raise concerns.

What to Look for in Verification Results

• License must be active and in good standing
• Surety bond ($20,000) must be current
• Guaranty Fund contributions must be up to date
• Check for any complaints or disciplinary actions
• Verify insurance coverage -- general liability is required
• Written contracts are required for all home improvement work in Maryland

Hiring an unlicensed contractor in Maryland carries significant risks for both the homeowner and the contractor:

• No consumer protections: State recovery funds and guaranty programs typically only cover work performed by licensed contractors.
• Insurance issues: Your homeowner's insurance may deny claims related to work done by an unlicensed contractor.
• Permit problems: Building permits often require a valid contractor license. Work done without permits can create issues when selling your property.
• Quality concerns: Licensed contractors have demonstrated minimum competency through exams, experience requirements, or both.
• Legal liability: Homeowners may bear greater legal responsibility for injuries or property damage caused during unlicensed work.
• Penalties: In Maryland, unlicensed contracting can result in fines and criminal penalties for the contractor, and the homeowner may lose the ability to enforce the contract.

Maryland does not currently have reciprocal contractor licensing agreements with other states. Contractors licensed in other states must apply for a new Maryland license through the standard application process. Some states may credit out-of-state experience toward licensing requirements -- contact the Maryland Home Improvement Commission (MHIC) for details.