Alaska Contractor License Search

Who Is a Contractor in Alaska?

Contractors are individuals or businesses that offer services based on agreements, which can be oral or written. To operate as a contractor in Alaska, obtaining a contractor's license is mandatory. The Alaska Division of Corporations, Business and Professional Licensing (DCBPL) regulates construction and home improvement activities across the state and issues licenses to eligible applicants through its Professional Licensing Section (PLS). Though the DCBPL has several license categories, contractors in Alaska can be grouped into five:

• General Contractors: These contractors handle or oversee new construction, residential, commercial, and remodeling works. They also typically undertake medium to large-scale construction, home, or property improvement projects. General contractors handling residential works exceeding 25% of the value of the structure being worked on must have a Residential Contractor license, a Residential Contractor Endorsement, or both.
• Residential Contractors: These contractors perform construction works on privately owned residential structures consisting of one to four units.
• Specialty Contractors: These contractors offer specific construction services to assist in the construction or property improvement workstream. They include electrical, carpentry, roofing, and fencing contractors.
• Mechanical Contractors: These are contractors who oversee the installation and operation of mechanical and related systems in buildings during new construction or remodeling work. Such systems include heating, ventilation, air conditioning, and cooling (HVAC) systems.
• Handymen Contractors: This refers to contractors who can only undertake construction or remodeling works costing $10,000 or less (including materials and labor costs). Basically, these contractors can handle small to medium-scale projects and may need to work under a general contractor to manage larger projects.

How to Search for a Contractor's License in Alaska

There are nearly 20,000 active contractors in Alaska, though most are specialty contractors, and the DCBPL regulates them across six major license categories. You can verify whether your prospective contractor is appropriately licensed or holds the license relevant to the service you need by checking the Uhire professional license search tool. Alternatively, you can check the DCBPL's professional license search platform.

Penalty for Hiring a Contractor Without a License in Alaska

Although there are no specific penalties for hiring an unlicensed contractor in Alaska, it is advisable not to do so because of the risks involved. Such risks include the following:

• Hiring an incompetent and unqualified contractor
• Getting defrauded or ripped off by home improvement scammers
• Hiring an unlicensed professional who cannot obtain necessary permits puts your project at risk of being stopped for lacking these permits.
• Engaging an uninsured professional puts a financial burden on you if injuries or property damage occur during your project.

On the other side, it is unlawful to operate as a contractor in Alaska without the requisite license. Such behavior is punishable by administrative and civil penalties upwards of $2,000 per violation, with each day of unlicensed operation counting as a separate violation.

How Much Does a Contractor Charge in Alaska?

On average, specialty contractors in Alaska charge between $15 and $75. This fee depends on several factors, especially the nature of the service, the contractor's experience, and the required labor.

The table below provides average hourly rates for commonly requested specialty contractors in Alaska (note that factors like your location and the contractor's local reputation may influence actual rates):

Electricians

$30 - $40

Plumbers

$35 - $50

HVACR Technicians

$30 - $40

Carpenters

$30 - $45

Painters

$25 - $30

Roofers

$30 - $40

Flooring Contractors

$20 - $35

Masons

$25 - $35

Landscapers

$40 - $55

Architects

$40 - $75

Interior Designers

$15 - $25

Excavation Contractors

$35 - $45

Concrete Contractors

$25 - $35

Handymen

$50 - $75

Appliance Repair Technicians

$20 - $30

Exterminators

$30 - $55

Cleaning Services

$15 - $30

Movers

$20 - $30

Most projects require several specialty contractors. While it is possible to engage each specialty contractor separately, hiring a general contractor to oversee and supervise the whole process is better. General contractors mainly consider the overall project cost when charging for their services and use different pricing styles, which may influence overall fees. Popular pricing styles include the following:

• Per square foot: This entails charging a fixed fee for the square footage of the property worked on. The overall fee is then the total of the footage multiplied by the fee.
• Fixed fee: In this pricing style, the contractor agrees with the project owner on a specific fee, considering what the project's cost may be in terms of materials, labor, and related matters. This style is best for projects with clear costs and timelines, which is usually the case in small and medium-scale projects.
• Cost Plus: Under this pricing style, the contractor receives the project's cost plus an extra fee. This extra fee is usually the contractor's payment and may be a percentage of the overall project cost. While this pricing style is ideal for most projects, agreeing on a price roof with your contractor is advisable to prevent excessive charges.

The average cost of a new construction or remodeling project in Alaska is between $120 and $250 per square foot. In addition to the number of specialty contractors working on the project, other factors that determine its overall cost are as follows:

• The scope of the project
• Permit fees
• Material and labor costs
• Location accessibility
• The contractor's reputation
• The project's timeline
• Other miscellaneous costs

Tips for Hiring a Contractor in Alaska

Construction and home repair projects are typically capital-intensive and involve your taste and preferences. With this in mind, it is critical that the contractors and subcontractors working on your project are qualified and have the expertise to meet your expectations. While there are several ways to ensure this, you can start by considering the following tips before hiring a contractor:

• Compare estimates from multiple contractors (preferably up to three).
• Ask each contractor interested in your project to provide customer references and check these references.
• Confirm any contractor involved in your project is state-licensed. You can verify their license by checking the DCBPL's professional license search platform. Contact the PLS at (907) 465-2050 if in doubt.
• Always hire insured and bonded contractors.
• Check the contractor's reputation. You can ask about the contractor or check service-based platforms like the Better Business Bureau, Yelp, or Google Review.
• Do not make high deposits or down payments.
• Minimize cash payments as much as possible and make payments with traceable methods, such as money transfers or checks.
• Have a record of documents relating to the project, especially payment receipts.
• Ensure you have a signed contract with your contractor. Be sure to read and understand the terms of any contract before signing it.

Is Your Contractor Insured and Bonded as Required by Alaska Statutes?

Contractors in Alaska are mandated by law to have valid insurance and bonding at all times during the validity of their license. These requirements are also a precondition for license applications and renewals. The insurance and bond amount depends on the contractor's category and license type. The bond amount ranges between $5,000 and $25,000, while the insurance amount ranges between $20,000 and $100,000. Insurance policies must cover property damage and bodily injury or death. Furthermore, contractors with one or more employees are required to have valid workers' compensation insurance for their employees.

Thus, always confirm your prospective contractor and their subcontractors are insured and bonded. Insurance offers you financial protection and reduces your liability when your project damages someone else's property or injures them. In this instance, depending on the insurance amount and the policy type, an insurance policy covers the costs of fixing the damages or the injured person's medical bills wholly or partly. A bond also gives you financial protection, but in a different case. Bonds are for instances where your contractor does a shoddy job, does not complete the job, or the job turns out to be below agreed standards. With a bond, you can recover some costs or get enough money to remedy the situation. In essence, insurance and bonds give you some form of financial buffer.

You can check your contractor's insurance and bond status by requesting copies of these policies and contacting the issuing agency to verify they are still current. You can contact the PLS at (907) 465-2050 for additional information regarding insurance and bond requirements.

Top Contractor Scams in Alaska

Home improvement scams are one of the most common types of scams across the country, with an average of over 6,000 scams reported annually. This is also an issue in Alaska, so project owners should be careful when planning their projects to ensure they do not get conned by unscrupulous individuals.

Some common tactics that fraudulent contractors use to scam Alaska homeowners are listed below:

• Unsolicited bids
• Insisting on high deposits and refusing to complete the work
• Avoiding a written contract
• Using fear tactics to pressure homeowners into hiring them or making unnecessary repairs
• Inflating the cost of materials and other forms of price gouging
• Requesting payments only in cash

You can avoid these scams by taking the following actions before committing to contractors:

• Always verify the license of your intended contractor.
• Compare estimates from at least three contractors before hiring.
• Ensure you have a signed contract with your contractor.
• Be wary of unsolicited bids and avoid them if possible.
• Do not pay a substantial deposit before the project begins. If you do, such a deposit should not exceed 10% of the project cost.
• Keep all records relating to the project, especially payment records.
• Avoid contractors who pressure you into hiring them or undertaking a repair project.
• Confirm that your contractor has obtained lien waivers in your favor to ensure your project is not subject to a lien claim.