South Dakota to Nebraska: residential contractor license reciprocity

How the two layers fit together. The Nebraska Department of Labor registration is required everywhere in the state and is the first thing to get - a city will expect you to have it, and a contractor may not perform construction work in Nebraska without it. It does not entitle you to pull a permit or to hold yourself out as qualified; that comes from the city. Because cities differ sharply, identify the building department with jurisdiction over the address and ask what it licenses before you bid.

Omaha. Permits and Inspections licenses building contractors under Chapter 43, Article IX of the Municipal Code in Classes A, B, C, D and E, plus Master and Journeyman Sign Erector. Classes A and B cost $300.00 plus a $24.00 technology fee and require an examination; Class C costs $200.00 plus a $16.00 technology fee and requires an examination; Class E costs $100.00 plus an $8.00 technology fee and does not require an examination. Class D is now a renewal-only class - the city's own note is that it requires an 'Equivalent License From Another Jurisdiction... The Exam is No Longer Available, Renewal License Only.' The building examinations are published in the National Contractor/Trades Examination Information Bulletin linked from the licensing page. Every license type needs a bond of at least $10,000.00, emailed with the insurance certificate to [email protected], and liability insurance of at least $1,000,000.00 for Classes A and B, $500,000.00 for Class C and $300,000.00 for Classes D and E. Renewal requires proof of nine contact hours of continuing education, which may come from construction-related college courses, from taking part in construction education outreach with school or university students, or from courses through agencies certified by the International Code Council, the American Institute of Architects, the National Association of Home Builders or the Associated General Contractors of America. Applications and renewals run through the Accela portal at OmahaPermits.com. Because the class scopes and the level that fits a given job are set by the building code rather than the licensing page, confirm the class with Permits and Inspections on 402-444-5350 or [email protected] before applying.

Omaha's reciprocal license. This is the one route in Nebraska where holding a contractor license somewhere else is worth something, and it is a city route rather than a state agreement. The requirements as Omaha publishes them are: 'Must hold a valid contractor's license from another jurisdiction'; 'Proof of examination required'; 'Approval by the Building Board of Review'; and 'Payment of required fee - $100.00 + $8.00 Tech Fee.' Applications are filed online at OmahaPermits.com for Building Board of Review approval of reciprocation of a building contractor's license. The board is a seven-member body that also hears building code waivers, appeals from the Superintendent of Permits and Inspections and property maintenance code appeals; reciprocal license applications are heard on a quarterly cycle, so ask Permits and Inspections for the next hearing date and the filing deadline before you plan around it. The board decides case by case and publishes no list of jurisdictions it accepts, so nothing is automatic.

Lincoln. Building and Safety licenses trades and specialties - demolition, electrical, HVAC, plumbing, signs, street use and fire - and certifies master and journeyman tradespeople; there is no Lincoln general building contractor or remodeler license. What a residential builder does need is the state registration, the right permits, and insurance where a licensed trade is involved: liability of at least $500,000 each occurrence for demolition, electrical, HVAC, plumbing, sign, street use and fire alarm work, or $1,000,000 for fire sprinkler and chemical extinguishing work, on a certificate that names 'City of Lincoln as an additional insured' by endorsement, carries a policy number rather than a binder number and is signed by the agent. Plumbing, HVAC, electrical and fire contractors must also list a master's name on the certificate as an insured. No bond is required unless you work in the city right-of-way; sign, street use and excavation contractors post a $5,000 license and permit bond or a cashier's check for the same amount. Documents go to [email protected]; Planning and Development Services is at 555 S 10th Street.

Everywhere else. Bellevue, Grand Island, Kearney, Papillion, La Vista and the rest each run their own building departments, and several license only the trades. None of them treats a license from another state as a qualification. Ask the city which licenses it issues, what insurance it wants and whether it registers contractors at all, and in every case hold the Nebraska Department of Labor registration first.

How it works in South Dakota. There is no state contractor license, no state application and no state examination, so nothing carries automatically from one South Dakota city to the next, let alone from another state. What every contractor does need before starting work anywhere in the state is a contractor's excise tax license from the Department of Revenue: 'an individual must be licensed before starting work in South Dakota' and 'all contractors must be licensed regardless of the amount of the receipts they have or the amount of tax due.' There is no fee for it, the excise tax itself is 2% of a prime contractor's gross receipts, and three of the four cities below want to see a copy of the license card before they will issue a city license. Get that first, then take each city in turn.

Sioux Falls. Building Services 'requires a Residential Building Contractor's License of all contractors doing work on residential 1- & 2-family dwellings and townhomes within the city limits', and the examples it gives run from sheds, decks, shingles and sheetrock to basement finishing and new construction. The license is held through a named Construction Supervisor, who must first pass the Construction Supervisor Examination: a timed open-book test on the City of Sioux Falls Residential Code Handbook, offered monthly, 50 questions, 'You must get 80% or higher to pass the test, therefore a maximum of 10 of the 50 questions may be incorrect.' The examination fee is $75.00 and the handbook is $10.00. 'Upon application the Construction Supervisor must submit a $20,000 Compliance Bond, a minimum of $300,000 general liability insurance and the appropriate license fees within 90 days of examination.' Licenses run three years, one hour of continuing education is required in each cycle, and a license expired more than twelve months means sitting the examination again unless an inactive license was maintained. On out-of-state credentials the city is blunt: 'No, the city of Sioux Falls does not reciprocate any licenses. You will still need to take and pass examination before applying for the license.' The city does not print the license fee itself on the page, so ask licensing on 605-367-8672 what to send with the bond and the certificate. Sioux Falls also issues a separate Residential Roofing & Repair Contractor license and separate electrical, mechanical, plumbing, fireplace, refrigeration, irrigation, right-of-way and sign licenses.

Rapid City. Building Services licenses a Class B contractor 'for construction of detached single-family houses, attached single family houses and two-family dwellings', on a city-administered open-book examination based on the 2018 International Residential Code and the Rapid City amendments, 54 multiple choice questions in three hours, sat at City Hall. The license costs $200 initially and $100 to renew, runs three years and carries six hours of continuing education per period. Every applicant files a certificate of insurance naming the City of Rapid City as certificate holder and nothing else is accepted, with minimum general aggregate liability of $1,000,000, $300,000 fire damage and $1,000,000 each occurrence, plus a workers' compensation certificate or a signed statement of non-participation for an owner or partnership with no employees. A copy of the state excise tax certificate goes in the packet. Roofing is a separate Class R license, also $200 for three years, on a 12-question examination. A licensee who misses renewal has a one-year grace period, after which the license lapses and the examination must be taken again. Building Services is on (605) 394-4120.

Aberdeen. The city is explicit that location makes no difference to whether you need its license: 'Whether you are based in the City of Aberdeen itself, a different city within South Dakota, or you are based out of a completely different state all together, you must be licensed through the City of Aberdeen.' The examination is 50 questions, open book, two hours, with a passing score of 70%, studied from The Contractors Handbook at $15, and '$35 fee will be charged every time an exam is attempted or passed.' Aberdeen is the one place in the state that gives any weight to a license held elsewhere: 'the examination requirement may be waived if proof of prior licensing from recognized jurisdictions is approved by the City of Aberdeen's Building Official.' No jurisdiction is named on the handout, so bring the license and the licensing authority's own documentation and ask the Building Official first. After passing or being waived, the applicant files a $200 first-time fee covering three years, proof of liability insurance, proof of workers' compensation insurance if applicable, and a copy of the excise tax license, and is then approved by the City Council, which meets Monday evenings; paperwork is due by noon the previous Wednesday and permits may be drawn only after the vote. Renewal is $150 every three years. Building Inspection is at City Hall, 123 South Lincoln Street, 3rd Floor, 605-626-7017.

Brookings. Community Development issues a residential contractor license on paperwork alone. The requirements are the application, a $75 fee, an excise tax number, a copy of workers' compensation insurance and 'a copy of current General Commercial Liability Insurance Certificate stating the sum of not less than $500,000 for each occurrence.' There is no examination and no bond. The license year is the calendar year, January 1 to December 31, and it 'must be renewed in order to continue any current project or prior to starting any new project'; a contractor with a job in progress who lets it expire pays double the fee. The license is neither refundable nor transferable. Building permits are required in the city and on nonagricultural land in the joint jurisdictional area roughly three miles out. Community Development is at 520 3rd Street, Suite 140, (605) 692-6629.

Everywhere else. Smaller South Dakota cities set their own rules and many require only a permit and proof of insurance. Ask the building official in each city you intend to work in, and remember that the excise tax license is required statewide whether or not the city licenses anybody.