Chicago requires a general contractor (GC) license for most building construction, alteration, repair and demolition work, including some work that is exempt from a building permit. There are five classes, A through E, based on project value. The exceptions are narrow: licensed trades working inside their own license, architects and engineers, and an owner working on their own primary residence under limits.
Owners ask this question from two sides. Hiring: "is my contractor licensed to do this?" Doing it yourself: "can I skip the license and act as my own contractor?" This article is the rule. It covers who needs a Chicago general contractor license, who does not, and the classes. To check a specific contractor's license, use our walk-through on how to check a Chicago contractor's license. For the full permit picture, see the Chicago building permits guide.
What the City says about the GC license
The City's General Contractor License page says a license is required for most building construction, alteration, repair and demolition work. That includes work "exempt from obtaining a building permit under Section 402" of the building code, and work under a stormwater management plan. Only one general contractor is allowed on a project at a time.
Read that twice. A job can be too small to need a permit and still need a licensed general contractor. The license rule and the permit rule are separate, and people confuse them. We cover the permit-exempt list in Chicago work that does not need a building permit.
The five license classes
The City sorts general contractors into classes by the value of the project. Value means the fair market value of all materials and labor, counting concurrent or consecutive work at the same site (City of Chicago).
| Class | Project value limit | Demolition allowed |
|---|---|---|
| A | Unlimited | Ordinary or complex |
| B | Up to $20 million | Ordinary or complex |
| C | Up to $10 million | Ordinary only |
| D | Up to $4 million | Ordinary only |
| E | Up to $500,000 | None |
The City also sets minimum insurance by class, from $1 million per occurrence for Class E up to $5 million for Class A, and the insurer must be rated B+ or better. Higher insurance for Classes C and D took effect January 1, 2026, per the City's page. Insurance and fees are updated by the City, so confirm current figures with the Department of Buildings.
Two details matter to an owner. The "all work at the site" rule means a contractor cannot split one project into small contracts to stay in a lower class. And a contractor whose class does not cover your project's value or demolition is not licensed for your job, even if the license is valid.
Who does not need a GC license
The City lists specific exceptions (City of Chicago). A GC license is not required for:
- Work done under a licensed general contractor's supervision
- Mere suppliers of material
- City-licensed board-up, drain layer, electrical, elevator, plumbing or mason contractors, working within their own license
- Illinois-licensed architects and engineers, within their license
- Owners doing work that needs no permit under the code's exemption section
- Government employees
- An individual working on their own primary residence: three stories or fewer, six units or fewer, no nonresidential occupancy, one property per calendar year, and never for excavation or demolition
A GC license also carries the consumer protections of a home repair license, so general contractors do not need a separate Chicago home repair license. A separate home repair license exists, but if the work needs a building permit, the City says a GC license is required instead (City of Chicago).
Specialty trades: where the GC license ends
A mason contractor is one of the City-licensed trades that can work within their own license without a GC license. The mason license covers work in stone, concrete, terra cotta (including clay brick) and structural tile, and the business must own or employ at least one person who passed the City's mason exam (City of Chicago). The City's masonry permit pages also require a licensed mason contractor unless the owner qualifies as owner-contractor (City of Chicago). The mason rules have their own exceptions, such as brick or concrete sidewalks and repairs that need no permit (City of Chicago). We unpack them in Chicago masonry license: who can legally lay your brick.
The rule of thumb: tuckpointing, brick and concrete work live under the mason license. A remodel that mixes trades, or a project that involves demolition, structural framing and interior work together, lives under a general contractor.
What this means for a typical Chicago owner
The most common situation is an owner hiring someone for a porch, a basement or a rear addition. If the work needs a permit, the person on the permit must be properly licensed for it. If the contractor has no license, the permit is a problem, and a stop work order may be waiting.
The other common situation is the owner who wants to be the contractor. That route exists, but it is narrow and carries the safety and inspection responsibilities. We lay out the details in owner-contractor rules in Chicago.
A typical pattern: a "handyman" quotes a porch rebuild or a basement conversion, says the permit is "no problem," and never mentions a license. The owner finds out when the City asks who the licensed contractor is, or when a buyer's inspector looks for permits years later. Ask for the license name and class before you sign anything.
How to verify a license
The City provides a Contractor License Lookup for general, mason, plumbing and electrical contractors, and a separate Permit Professionals lookup for expediters and architects. The state IDFPR lookup covers architects, engineers and roofers (City of Chicago). Match the license holder's business name to the name on your contract and estimate, and confirm the class fits the project value.
If you hire an unlicensed contractor for work that requires a license, the permit can stall, and work done without the required permit can get a stop work order. Under the City's rules, work restarts only after the permit is obtained and the penalty is paid, the permit fee is tripled in most cases, and you may be told to correct or remove the work at your expense (City of Chicago). Check current amounts with the Department of Buildings.
Need a licensed contractor to scope a job and handle the permit? Talk to our expediting team. Licensed and insured in Illinois, and we handle the paperwork with the City.
Common questions
If you are a contractor, usually yes. The City requires a GC license for most building construction, alteration, repair and demolition, even some work exempt from a permit. Narrow exceptions apply to licensed trades, architects and engineers, and owners working on their own primary residence.
There are five, A through E. They are sorted by project value: A is unlimited, B up to $20 million, C up to $10 million, D up to $4 million and E up to $500,000, with no demolition for E. Confirm current limits with the Department of Buildings.
Not unless the person holds the right City license for that work. If the job needs a building permit, the City requires a licensed general contractor (or a licensed specialty trade within its own license), not a home repair license. Verify the license before signing.
Not for their own trade. The City lists licensed board-up, drain layer, electrical, elevator, plumbing and mason contractors as exempt when working within their license. If the job goes beyond that trade, a general contractor is needed.
Sometimes. The City exempts an individual's primary residence of three stories or fewer and six units or fewer, one property per calendar year, but not for excavation or demolition. The details are in our owner-contractor article, and you should confirm with the Department of Buildings.
Sources
- City of Chicago: Guide to Building Permits: What Happens If I Start Work Without a Required Permit?
- City of Chicago, Department of Buildings: General Contractor License
- City of Chicago: Guide to Building Permits: General Contractor License FAQ
- City of Chicago, Department of Buildings: Mason Contractor License
- City of Chicago: Guide to Building Permits: Mason Contractor License FAQ
- City of Chicago, Department of Buildings: Trade License Information Center
- City of Chicago, Department of Buildings: Trade Licensing
Facts last checked: October 7, 2026.
This article explains general rules and common situations in Chicago. It is not legal advice, and City rules change. For a specific property, check with the Chicago Department of Buildings or a licensed professional.