What You Need to Know Before becoming a Contractor

If you’ve ever thought about running your own business, managing projects, or leading teams on construction and technical jobs, you may have asked yourself: how to become a contractor? Contractors are essential to shaping our communities, whether they’re overseeing the construction of new homes, maintaining vital infrastructure, or managing specialized projects like electrical, plumbing, or IT systems.

But becoming a contractor isn’t as simple as picking up tools and finding clients. The process involves training, licensing, and practical experience. In this blog, we’ll explore what it takes to launch a career in contracting, what does a contractor do, and how to get a contracting license.

Quick Links

• How to Become a Contractor

• What Are the Requirements to Become a Contractor?

• How to Get a Contracting License

• What Does a Contractor Do?

• What Types of Contractors Are There

• Tips for Aspiring Contractors

How to Become a Contractor

The journey toward becoming a contractor usually begins with education and hands-on experience. Depending on your specialty, you might pursue technical training, an associate degree, or even a bachelor’s degree in areas like construction management, engineering technology, or business.

Once you’ve gained foundational knowledge, the next step is to work under an experienced contractor to learn the trade. This allows you to understand not only the technical aspects but also the business side of managing contracts, budgeting, scheduling, and leading crews.

Contractors also need to develop a working knowledge of state and local regulations. Every city and state has building codes, safety standards, and permitting processes, and understanding how these systems work is just as important as knowing how to build or repair.

Finally, you’ll need to obtain the proper state license. Each state has different requirements, but they typically involve passing an exam that tests your technical knowledge and understanding of building codes, laws, and safety practices.

What Are the Requirements to Become a Contractor?

If you’re wondering what the requirements are, here’s a general breakdown:

1. Education – Many contractors begin with apprenticeships or technical training. Others pursue degrees in construction management, engineering technology, or business to strengthen their skill set. Formal training gives aspiring contractors a solid foundation in blueprint reading, construction methods, and project management.
2. Experience – Most states require several years of work experience in the field before you can sit for a contractor’s exam. This experience is essential for learning how to apply technical knowledge on real projects, manage teams, and solve problems in unpredictable jobsite conditions.
3. Examination – Passing a state exam is a key step. The exam usually covers building codes, safety standards, contract law, and specific trade knowledge. In some cases, applicants must also demonstrate practical skills through trade-specific tests.
4. Financial Responsibility – Many states require proof of insurance, bonding, or financial stability to ensure that contractors can fulfill their obligations. Liability insurance protects both the contractor and the client if something goes wrong.
5. Business Registration – Contractors who plan to work independently often need to register their business entity (such as an LLC or sole proprietorship), obtain a tax ID number, and set up business banking.
6. Continued Learning – Some licenses require ongoing education to stay current with industry standards and regulations. Codes and practices evolve over time, so contractors need to remain up to date.

These requirements may vary widely depending on where you live, so it’s critical to check with your state’s licensing board before getting started.

How to Get a Contracting License

So, how to get a contracting license? While the details vary from state to state, the general roadmap looks like this:

1. Choose Your Specialty – Decide whether you want to be a general contractor (handling multiple trades and larger projects) or a specialty contractor (focused on areas like electrical, HVAC, or plumbing).
2. Meet Education & Experience Requirements – Gather documentation of your work history, apprenticeships, and any relevant coursework. Most boards require a certain number of verifiable hours under a licensed contractor.
3. Apply for the Exam – Submit an application with your state’s licensing board. This often requires application fees, background checks, and proof of experience. Some states may require personal references or letters of recommendation.
4. Pass the Licensing Exam – Be prepared to demonstrate knowledge of safety codes, construction practices, and business law. In some states, separate exams may be required for general contracting versus specialized trades.
5. Provide Insurance & Bonding Proof – Many states will not issue a license until contractors show proof of general liability insurance and surety bonds. This requirement ensures consumer protection and accountability.
6. Maintain Your License – Renew regularly and meet continuing education requirements to keep your license valid. Many states also conduct random audits to verify compliance.

Having a license not only ensures compliance with state laws but also builds trust with clients, proving that you meet professional and safety standards.

What Does a Contactor Do?

Contractors wear many hats. Beyond managing construction or technical projects, they:

• Plan and Budget Projects – Estimating costs, ordering materials, and managing finances.
• Supervise Teams – Hiring and coordinating subcontractors and laborers to ensure the job is done correctly and on time.
• Ensure Safety and Compliance – Making sure all work meets legal codes and safety requirements. Contractors must often coordinate with inspectors to certify that projects meet official standards.
• Communicate with Clients – Translating client needs into action and maintaining strong relationships throughout the project.
• Problem-Solve on Site – When unexpected issues arise, such as weather delays, supply shortages, or design changes—contractors must adapt quickly and keep projects on track.

In short, contractors act as the bridge between vision and reality. They turn blueprints into finished projects, ensuring every step is completed efficiently and correctly.

What Types of Contractors Are There?

When asking what types of contractors are there, it’s important to know that contracting is a broad field with many pathways:

• General Contractors – Oversee entire projects, from homes to commercial buildings. They coordinate all subcontractors, manage permits, and serve as the primary point of contact for the client.
• Specialty Contractors – Focus on specific trades such as plumbing, HVAC, roofing, or electrical work. These contractors often hold separate, trade-specific licenses.
• Engineering Contractors – Handle more technical projects, such as mechanical or civil engineering builds. They may specialize in infrastructure projects like bridges, highways, and utility systems.
• Technology Contractors – Increasingly in demand, these contractors specialize in IT infrastructure, cybersecurity installations, or smart home systems.

There are also different levels of contractors, from entry-level to master-level, depending on years of experience and certifications. Within each level, there are further specialties: residential contractors, commercial contractors, heavy civil contractors, and more.

This variety means you can tailor your path to your skills and interests, whether you prefer hands-on trade work, project management, or highly specialized technical builds.

Tips for Aspiring Contactors

If you’re serious about becoming a contractor, consider these practical steps to strengthen your path:

• Keep Detailed Records – Document your work experience and training hours carefully, as most licensing boards require proof.
• Network Early – Build relationships with subcontractors, suppliers, and mentors who can guide you and may become part of your team later.
• Learn Business Skills – Being a contractor is as much about running a business as it is about building. Understanding contracts, accounting, and project management is essential.
• Stay Organized – Develop systems for scheduling, budgeting, and compliance. Strong organization separates successful contractors from struggling ones.
• Be Prepared for Responsibility – Contractors often carry the legal and financial responsibility for projects. That means risk management, liability, and ethical decision-making must be part of your daily mindset.

So, how to become a contractor? The path involves combining education, experience, and licensing to build a trusted career. Whether you’re drawn to general contracting, a specialized trade, or even technology-focused contracting, opportunities are abundant.

With a clear roadmap, education, hands-on training, licensing, and continuous learning, you can move forward with confidence and start building not just projects, but a professional future rooted in expertise and trust. Learn more about ATI programs today!