Tennessee to Delaware: general contractor license reciprocity
Delaware gives no credit for a Tennessee general contractor license. You qualify from scratch.
Reference only, not legal advice. Rules change; confirm with the licensing board before you apply. Full disclaimer.
Everyone files the same registrations; an out-of-state general contractor license transfers nothing
Your out-of-state credentials give no advantage. You meet the destination's requirements from scratch.
A commercial or general contractor licensed in another state gains no advantage in Delaware and suffers no disadvantage for lacking one. There is nothing to waive: no Delaware agency examines contractors, sets an experience standard, reviews finances or recognizes a qualifying individual at this tier, and neither the tax chapter nor the Contractor Registration Act contains a reciprocity, endorsement or equivalence provision. Delaware is not one of the state agencies that accept the NASCLA Accredited Examination for Commercial General Building Contractors either. The route is the same for every contractor. Form the business or qualify it as a foreign entity, apply to the Division of Revenue for the contractor business license and pay $75, and register with the Department of Labor's Office of Contractor Registration before any work begins, paying $200 for private construction, $300 for public construction or $500 for both. Carry Delaware workers' compensation insurance, file the Department of Labor certificate of notice, and file an OSHA-compliant safety plan with the Labor registration. A contractor that does not regularly maintain a place of business in Delaware must also post a bond of six percent of any contract of $20,000 or more, or of the aggregate of contracts reaching $20,000 in a calendar year, before construction begins, and name a Delaware custodian of records and agent for service of process. On top of that, work in unincorporated New Castle County needs that county's building contractor license in the class that matches the project value.
Two Delaware quirks catch arriving commercial contractors. First, the license application must be initiated before a bid is submitted on a competitively bid contract over $50,000, or for a subcontractor before the general contractor bids, so the paperwork cannot wait until award. Second, the architect, engineer, contractor or construction manager that awards a contract to a nonresident contractor must report it to the Department of Finance within 10 days on Form 5060, with a civil penalty of up to $10,000 for each failure; the same penalty applies to missing the nonresident bond. Public works projects under the prevailing wage law at 29 Del. C. §6960 carry the higher $300 registration fee and their own wage and reporting rules. A contractor may not use an unregistered subcontractor, and doing so is a ground to suspend or revoke its own certificate of registration; a knowing violation of the Contractor Registration Act carries a civil penalty of $5,000 to $85,000 per violation. Delaware publishes no processing time for either credential. Division of Revenue Business Tax Department (302) 577-8780; Office of Contractor Registration, [email protected].
At a glance
- Trade exam
- Waived
- Law / code exam
- Not required
- Out-of-state hours
- Do not count
What you must already have
- Nothing about the applicant's trade history is examined. No examination result, experience record, education, reference, credit report or financial statement is asked for at any stage, and no individual is named as a qualifier, so an out-of-state general contractor license, a NASCLA examination transcript and decades of commercial building all carry the same weight in Delaware, which is none.Confirmed against 30 Del. C. ch. 25 and 19 Del. C. ch. 36 read in full, the One Stop contractor registration checklist and the Division of Professional Regulation's complete list of 37 boards, which contains no board for general, building or residential contractors.
- A business that does not regularly maintain a place of business in Delaware is a nonresident contractor: it posts the six percent tax bond before construction starts and names a Delaware custodian of records and agent for service of process on the Labor registration. A site trailer or similar facility used for one contract does not make a business resident, however long the contract runs.30 Del. C. §2501(3), (6) and (7) and §375(a)(1)-(2); 19 Del. C. §3605(b)(3). Where a contractor entity is a partnership or joint venture, it counts as resident if at least one constituent entity regularly maintains a Delaware place of business.
- The Labor registration application asks whether the business, or anyone with a financial interest in it, has held an interest in an entity cited for a labor law violation, has been convicted of home improvement fraud or new home construction fraud, or has been found to have engaged in an unlawful trade practice, and requires labor law violations and fraud in the last two years to be listed with dates and outcomes.19 Del. C. §3605(b)(4). The Department may deny, suspend or revoke a certificate for non-compliance, a wilful misstatement, refusing to provide requested records, performing work out of compliance, using an unregistered subcontractor or obstructing an investigation, and may require a surety bond or an administrative penalty instead; appeals go to the Secretary of Labor and then to Superior Court.
What you'll do to get licensed in Delaware
- 1Business license. Obtain a business license ($75). Delaware contractor business license from the Division of Revenue, required of any person or entity engaging in business in the State as a contractor, whether general contractor or subcontractor and whether resident or nonresident. The fee is $75, the license runs to January 1 and renews annually by December 31, and most licenses are pro-ratable in the first year. Apply through Delaware One Stop or a Combined Registration Application. On a competitively bid contract over $50,000 the application must be initiated before the bid. The Division will not issue the license until the nonresident bond obligation under 30 Del. C. §375 is met, a Delaware Department of Labor certificate of notice is filed, and a certificate of workers' compensation insurance or qualified self-insurer status is filed..
- 2Business license. Obtain a business license ($200). Contractor Registration Certificate from the Department of Labor's Office of Contractor Registration, required before performing construction services or maintenance in Delaware. One-year fees are $200 for private construction, $300 for public construction and $500 for both; after two consecutive registered years, a contractor with no labor law violations who renews before expiry may take a two-year certificate for $300 (private) or $500 (public). The application asks for tax identification numbers, NAICS codes, business details, contacts for everyone with a financial interest, the Delaware business license number, proof of Delaware workers' compensation coverage, the unemployment insurance SUI number, an OSHA-compliant safety plan and the labor and fraud disclosures. Renewal is possible only in the 90 days before expiry, the certificate is not transferable, and letting it lapse means applying again as a first-time applicant..
- 3Surety bond. Post a surety bond (if applicable). Non-Resident Contractor Bond for a contractor that does not regularly maintain a place of business in Delaware: six percent of the contract or subcontract price on any contract of $20,000 or more, six percent of estimated cost and profit under a cost-plus contract of that size, or six percent of the aggregate where two or more contracts in a calendar year reach $20,000. It is filed with the Division of Revenue on the Division's own form before construction begins, and a cash bond or a bank letter of credit approved by the Director of Revenue may be accepted instead. The Secretary of Finance may waive it in whole or in part where no bond is needed to protect state tax revenue, and issues a project certificate of compliance on request. The bond secures Delaware income and withholding taxes, license fees and unemployment contributions; it is not a performance bond. The contractor must notify the Department within 20 days of completing each Delaware project. Bonding questions: (302) 577-8167..
- 4Insurance. Carry the required insurance. Delaware workers' compensation insurance, evidenced by a certificate filed with the Division of Revenue before the business license is issued, or a Department of Labor certificate showing the business is a qualified self-insurer. The policy number and a digital copy are uploaded again with the Contractor Registration application, together with the Delaware unemployment insurance SUI number..
- 5Other. A certificate of notice from the Delaware Department of Labor confirming that the business has notified the Department that it has entered, or will enter, contracts to perform labor, or labor and materials, on a Delaware construction project. The Division of Revenue may not issue the contractor business license without it..
- 6Other. A written safety plan compliant with Occupational Safety and Health Administration requirements, or evidence that a compliant plan is being created, filed with the Contractor Registration application..
- 7Other. Gross receipts tax on construction receipts: a license fee of 0.6472 percent of aggregate gross receipts, with the first $100,000 each month exempt, due by the twentieth of the following month, or quarterly with a $300,000 deduction where lookback-period receipts do not exceed $1,500,000. Sums paid to licensed subcontractors under a written agreement stating the exact sums payable are excluded and are reported on Form 1280. All branches or entities of an enterprise under common ownership or control share a single monthly or quarterly deduction. Real estate developers compute gross receipts differently, deducting land and site costs or electing a flat 30 percent of gross proceeds..
- 8Other. Form 5060, Statement of Contracts Awarded, filed with the Department of Finance within 10 days of entering a contract with a nonresident contractor or subcontractor, stating the total value of the contracts and the names and addresses of the parties. The duty falls on the architect, professional engineer, contractor or construction manager awarding the work, so a general contractor moving to Delaware takes it on for its own out-of-state subcontractors. The civil penalty is up to $10,000 for each occurrence..
- 9Other. A New Castle County permit endorsed building contractor license for work in the unincorporated county, in the class that matches the project value: Class C up to $50,000 with a $25,000 bond, Class B up to $100,000 with a $50,000 bond, Class A up to $200,000 with a $150,000 bond, or Class U for unlimited value with a $200,000 bond, on the county's own Statutory Compliance Bond form. The 2026 fee is $410, and liability insurance of at least $250,000 per occurrence with a $500,000 aggregate must name the county's Department of Land Use as certificate holder. There is no county examination. (if applicable).
- 10Other. Separate Delaware trade licenses where the work calls for them. Neither the business license nor the contractor registration authorizes licensed trade work: electricians are licensed by the Board of Electrical Examiners, plumbers and HVACR contractors by the Board of Plumbing, Heating, Ventilation, Air Conditioning and Refrigeration Examiners, and elevator mechanics and manufactured home installers by their own boards within the Division of Professional Regulation. A general contractor satisfies these by employing or subcontracting to the correctly licensed firm, and every subcontractor must hold its own Delaware contractor registration. (if applicable).
What you'll need to buy or arrange
Business registration
If you plan to contract in your own name, budget for a business license or entity registration on top of the trade license.
- Business license · $75
- Business license · $200
Surety bond
A license or contractor bond is bought from a surety, not the state. Price is a small percentage of the bond amount and depends on your credit.
- Surety bond · if applicable
- Other · if applicable
Liability insurance
Some states require proof of general liability or workers' compensation coverage at licensing time.
- Insurance
How Delaware licenses general contractors
Delaware general contractor · “Delaware contractor business license (Division of Revenue) plus Contractor Registration Certificate (Department of Labor)”
Statewide license
Delaware has no general, commercial or unlimited building contractor license and no state board that examines builders. The Division of Professional Regulation's 37 boards cover electricians, plumbers and HVACR contractors, elevator mechanics, architects, home inspectors and manufactured home installers, but nothing for general or building contractors, so there is no competency credential at this tier and no trade or business-and-law examination to sit. The two credentials Delaware does require are entity-held and are both about revenue and labor compliance rather than skill. The contractor business license from the Division of Revenue is a tax registration: $75 a year plus a gross receipts tax on construction receipts, and the Division states plainly that the license 'is not a regulatory license and the issuance of such license does not attest to the qualifications of the applicant to perform the activity described on such license.' The Contractor Registration Certificate from the Department of Labor's Office of Contractor Registration is required of every business doing construction services or maintenance before work begins, and it checks workers' compensation, the state business license and an OSHA-compliant safety plan. A contractor without a Delaware place of business is a nonresident contractor and posts a tax bond of six percent of contracts of $20,000 or more. Project-size classification exists only locally: unincorporated New Castle County grades building contractor licenses from Class C to unlimited Class U by project value and surety bond.
How local licensing works in Delaware
New Castle County. The Department of Land Use licenses contractors working in unincorporated New Castle County, and for commercial building this is the only classification tier in Delaware. A permit endorsed license is required of anyone whose construction activity needs a permit, including building contractors; a non-permit endorsed license covers NAICS Sector 23 construction activity that needs no permit. The county excludes electrical contractors, who hold the state electrician license instead, businesses solely engaged in subdivision and land development, DelDOT right-of-way heavy utility work, and maintenance employees of state-owned facilities. Building contractor classes are set by project value and surety bond, not by examination: Class U, unlimited project value, $200,000 bond; Class A, up to $200,000, $150,000 bond; Class B, up to $100,000, $50,000 bond; Class C, up to $50,000, $25,000 bond. The bond must be executed on the county's own unmodified Statutory Compliance Bond form, and the business name on the bond must match the license application exactly. Also required: a current Delaware business license (the Division of Revenue's temporary resident or non-resident contractor license is accepted), a certificate of liability insurance of at least $250,000 for injury or death to one person and property damage in one occurrence, with a $500,000 aggregate for two or more persons, naming NCC Department of Land Use License Processing, 87 Reads Way, New Castle DE 19720 as certificate holder, and an optional Identification of Authorized Agents form. The 2026 fee is $410, made up of a $400 license fee and a $10 ICC digital code access fee that gives the contractor online access to the county's adopted codes. Apply online; Department of Land Use, (302) 395-5420, [email protected]. Check the county parcel search first, because incorporated municipalities fall outside county jurisdiction.
Kent County. Levy Court issues building permits and publishes project-specific requirement sheets. It publishes no county contractor license. Planning Services, (302) 744-2451.
Sussex County. A Sussex County building permit is required for all construction, new, remodeling or additions, whether the site is in a municipality or in the unincorporated county, and plans must be presented for commercial buildings. The county publishes no contractor license. Building Permit Office, Georgetown, (302) 855-7720.
Wilmington and other municipalities. A business operating inside Wilmington needs a city business license as well as the state one, and bidding city work also means filing a vendor application; the city's permit rules refer to work by a City of Wilmington license holder, so ask the Department of Licenses and Inspections what your scope needs. Wage/Business License Division (302) 576-2415; permits, [email protected] or 302-576-3050. Delaware's other incorporated towns set their own business license rules.
Common questions
- Do I have to take the Delaware general contractor exam if I'm licensed in Tennessee?
- No. The trade exam is waived on this path.
- Do my Tennessee work hours count in Delaware?
- No. Delaware does not credit out-of-state hours on this path.
- Does it work the other way, from Delaware to Tennessee?
- Not necessarily. Reciprocity is directed. Going from Delaware to Tennessee, the mechanism is endorsement.
Sources
- 19 Del. C. ch. 36 - Delaware Contractor Registration Act · 19 Del. C. §§3601-3611 · Delaware General Assembly, Delaware Code Online · Statute · verified September 17, 2026
- 30 Del. C. §375 - Furnishing of bonds by foreign persons or firms (nonresident contractor bond) · 30 Del. C. §375 · Delaware General Assembly, Delaware Code Online · Statute · verified September 17, 2026
- 30 Del. C. ch. 25 - Contractors' License Requirements and Taxes · 30 Del. C. §§2501-2503 · Delaware General Assembly, Delaware Code Online · Statute · verified September 17, 2026
- Registered Construction Contractors in Delaware (public registry) · Delaware Department of Labor, Office of Contractor Registration · Agency Page · verified September 17, 2026
- Delaware Division of Professional Regulation - Boards and Commissions (complete list) · Delaware Department of State, Division of Professional Regulation · Agency Page · verified September 17, 2026
- Kent County Levy Court - What Information Do I Need for a Building Permit? · Kent County, Delaware, Levy Court · Agency Page · verified September 17, 2026
- New Castle County - 2026 Building Contractor Requirements (permit endorsed building contractors) · New Castle County, Delaware, Department of Land Use · Form · verified September 17, 2026
- New Castle County Department of Land Use - Contractor Licensing · New Castle County, Delaware, Department of Land Use · Agency Page · verified September 17, 2026
- Delaware One Stop - Contractors Registration · 19 Del. C. ch. 36 · State of Delaware, Delaware One Stop (Department of Labor, Office of Contractor Registration) · Agency Page · verified September 17, 2026
- Delaware Division of Revenue - Business Licenses · Delaware Department of Finance, Division of Revenue · Agency Page · verified September 17, 2026
- Delaware Division of Revenue - Tax Tips for Contractors and Real Estate Developers Conducting Business in Delaware · 30 Del. C. ch. 25 · Delaware Department of Finance, Division of Revenue · Other · verified September 17, 2026
- Delaware Division of Revenue - Contractors (Resident and Non-Resident) · Delaware Department of Finance, Division of Revenue · Agency Page · verified September 17, 2026
- Delaware Division of Revenue - Non-Resident Contractor Bond form · 30 Del. C. §375 · Delaware Department of Finance, Division of Revenue · Form · verified September 17, 2026
- Sussex County - Building Permits and Licenses · Sussex County, Delaware · Agency Page · verified September 17, 2026
- City of Wilmington - Doing Business in the City of Wilmington · City of Wilmington, Delaware · Agency Page · verified September 17, 2026
- NASCLA Accredited Examination for Commercial General Building Contractors · National Association of State Contractors Licensing Agencies · Other · verified September 17, 2026
Verified dates are when a person last opened each source and confirmed the facts above. Cite the board, not us.