Most building construction, alteration, repair and demolition work inside Chicago requires a City of Chicago general contractor license from the Department of Buildings. There are five classes, from Class E (projects up to $500,000, $1 million per-occurrence insurance) to Class A (unlimited value, $5 million). Confirm your scope with the city.
Who needs a Chicago general contractor license?
The City of Chicago requires a general contractor license for most construction, alteration, repair and demolition of buildings within city limits. The license is issued by the Department of Buildings, and the requirement is based on the work being done, not on what a company calls itself. You can read the City's own summary on the General Contractor License page.
One point that surprises homeowners: a general contractor doing residential work in Chicago has to follow the city's home-repair consumer-protection rules, but does not need a separate home repair license on top of the GC license.
Rules change and scopes vary. Before you sign anything, confirm with the Department of Buildings whether your specific project needs a licensed general contractor, a permit, or both.
What do the five license classes mean?
Chicago's general contractor license comes in five classes, and the class sets a ceiling on how large a project that contractor may take on, along with a minimum insurance requirement. Class E covers projects up to $500,000 in value and carries a $1 million per-occurrence insurance minimum. At the other end, Class A has no project value limit and requires $5 million per occurrence. Classes B, C and D sit in between, with rising value caps and insurance minimums.
For a homeowner, the practical question is simple: is the contractor's class high enough for the value of your job? A kitchen or bathroom remodel sits comfortably inside the lower classes. A full gut rehab or a commercial build-out may not.
Ask for the license class, not just the word "licensed." The classes and their limits are published by the City at the link above, and you can confirm a specific license with the Department of Buildings.
What a general contractor license does not cover
This is the part most people miss. A Chicago general contractor license does not authorize electrical, plumbing, mason, drain layer, elevator or crane work. Each of those trades requires its own City license. A GC who tells you their license covers rewiring your panel is describing something the City does not allow.
Electrical work has its own structure: an electrical contractor in Chicago must be owned by, or employ, at least one licensed supervising electrician. The City describes that requirement on the Supervising Electrician License page.
So on a bathroom remodel that moves a light, adds an outlet and relocates a drain, you are not dealing with one license. You are dealing with a general contractor plus separately licensed trades. That is normal, and it is how the rules are written.
Why subcontractors don't each need their own GC license
The City allows subcontractors working under a general contractor's supervision and control to work without holding their own general contractor license. They still need the trade license for their own trade — an electrician still needs electrical credentials — but they are not each required to be a licensed GC.
That is exactly why the coordinated model exists. One general contractor holds responsibility for the project, pulls or assigns the permits, sequences the work, and brings in licensed and qualified trade contractors for electrical, plumbing and the rest.
It also tells you what to look for in an estimate. A written scope should say who is doing which part of the work and who is responsible for which permits, so nothing is assumed.
The homeowner exception, and what it limits
Chicago does allow an individual to do work on their own primary residence without a general contractor license, but the exception is narrow. The building must be three stories or fewer, have six or fewer dwelling units, and have no nonresidential occupancy. The exception applies to one property per calendar year.
If your building is larger, mixed-use, or if you are working on a second property in the same year, the exception does not apply and licensed work is required.
The exception also does not waive permits or inspections. Those are separate from licensing, and the Department of Buildings is the office to confirm both. Full details are on the City's General Contractor License page.
Plumbing is licensed by the state, not the city
Illinois licenses plumbers at the state level through the Illinois Department of Public Health. The path is long on purpose: a 48 to 72 month apprenticeship under a licensed plumber, a state examination, and continuing education to stay current. The program is described on the IDPH plumbing page.
That means a plumbing credential is not something a general contractor can stand in for. On any job that touches supply lines, drains or fixtures, ask who the licensed plumber is and confirm the license with IDPH.
If you are planning a fixture change or renovation plumbing, our plumbing page explains how we scope that work. We review the issue first; we do not quote plumbing repairs before seeing the property.
Five questions to ask any Chicago contractor before you sign
One: do you hold a City of Chicago general contractor license, and which class? Two: who is pulling the permits for this job, and is that written into the estimate? Three: which parts of this scope will be done by separately licensed trades, and who are they? Four: what insurance do you carry, and can I see the certificate? Five: what is included, what is an allowance, and what is excluded?
Answers to all five should appear in writing. If a contractor will only answer verbally, that is your answer.
How Variety Pros LLC works
Variety Pros LLC is a full-service residential and commercial construction company based at 205 N. Michigan Ave., Suite 800, Chicago. Owner Brandon Willis coordinates licensed and qualified trade contractors for electrical, plumbing, roofing, painting, concrete and bathroom work, and handles the scheduling and sequencing so you are talking to one person about the project rather than five.
Our written estimates identify allowances, exclusions and permit responsibilities before work begins. We confirm permit requirements and credentials for the specific scope rather than assuming them, because the answer genuinely changes between a Chicago address and a suburban one.
You can see the full scope of our general construction and remodeling work, or review the cities we serve — Chicago plus South Holland, Orland Park, Tinley Park, Bolingbrook, Schaumburg, Oak Brook, Park Forest, Rosemont and Oak Park. To talk through a project, call (312) 585-6226 or email willisb245@gmail.com. We work by appointment, Monday through Saturday, Central time.
Frequently asked questions
How do I check whether a Chicago contractor's license is real?
Ask for the license name, class and number, then verify it with the City of Chicago Department of Buildings. The City publishes the general contractor license rules at chicago.gov, and the Department can confirm a current license for a specific business. Do not rely on a logo or a claim on a website.
Does a suburban project need a Chicago general contractor license?
No. The City of Chicago license applies to work inside Chicago. Suburbs such as Orland Park, Tinley Park and Schaumburg run their own contractor registration and permit requirements through their village offices, so licensing must be confirmed with the village where the work is happening.
Is a permit the same thing as a license?
No. A license is a credential held by the contractor or tradesperson. A permit is approval for a specific project at a specific address. A project can require both, and the homeowner exception for licensing does not remove permit or inspection requirements.
What insurance should a general contractor carry in Chicago?
The City ties minimum insurance to license class: $1 million per occurrence at Class E, rising to $5 million per occurrence at Class A. Ask for a certificate of insurance naming the contractor, and confirm the coverage is current for the dates of your project.
Can one contractor do my electrical and plumbing too?
Not under a general contractor license alone. Chicago requires separate trade licenses for electrical, plumbing, masonry, drain laying, elevators and cranes, and plumbing is licensed by the State of Illinois. A general contractor coordinates those separately licensed trades under their supervision.