AS 08.18 Registration Law — Bonds, Insurance & Exemptions
Alaska's contractor law (AS 08.18) protects the public through mandatory bonds, minimum liability insurance, and clear limits on who may work without full registration. This chapter covers the general-contractor and handyman bonds, the insurance minimums, and the handyman project threshold.
The general contractor surety bond (AS 08.18.071)
To register as a General Contractor, an applicant must file a surety bond of $25,000 with the department under AS 08.18.071. The bond gives injured customers, laborers, and material suppliers a source of recovery if the contractor fails to perform or pay. A contractor who works without a valid registration and bond is in violation of AS 08.18 and may lose the ability to enforce a contract or collect for the work — a strong incentive to keep the registration and bond current at all times.
Public-liability and property-damage insurance
In addition to the bond, an Alaska contractor must carry public-liability and property-damage insurance covering contracting operations in the state. The statutory minimums are at least $20,000 for damage to property, $50,000 for injury (including death) to any one person, and $100,000 for injury (including death) to more than one person. These figures are floors — many projects and owners require higher limits — but registration itself cannot be issued or maintained without proof of at least this coverage.
Handyman registration and the $10,000 threshold
Alaska offers a limited Handyman Contractor registration for smaller work. A handyman posts a smaller $5,000 bond and may only perform contract work on projects valued at $10,000 or less; the same liability-insurance minimums apply. A person doing larger projects must hold the full General Contractor registration (and, for residential work of one to four units, the Residential Contractor Endorsement). Knowing the $10,000 handyman ceiling is important because exceeding it without a general-contractor registration is unlicensed contracting.
State-specific details
State exam facts
- State regulator
- Alaska Division of Corporations, Business and Professional Licensing (DCCED) — Construction Contractors Section
- Exam vendor
- PSI
- Prelicensing education
- 16-hour Alaska Craftsman Home Program course (or equivalent arctic-engineering course) within the prior two years
- Passing score
- 70%
- Scored questions
- 100
- Time limit
- 240 minutes
Does Alaska require a state contractor license?
Yes. Alaska registers contractors under AS 08.18 rather than running a general commercial trade exam. A General Contractor must hold a certificate of registration, post a $25,000 surety bond, and carry public-liability/property-damage insurance before doing work.
What exam does Alaska require to build homes?
Under AS 08.18.025 a general contractor cannot build, substantially alter, or bid on a privately-owned one-to-four-unit residential structure without a Residential Contractor Endorsement, which requires passing the Alaska residential endorsement exam (100 questions, 240 minutes, 70% to pass, per the PSI Candidate Information Bulletin) and completing a 16-hour arctic-construction course.
Who licenses contractors in Alaska?
The Department of Commerce, Community & Economic Development (DCCED), Division of Corporations, Business and Professional Licensing — Construction Contractors Section.
Sources: https://www.commerce.alaska.gov/web/cbpl/ProfessionalLicensing/ConstructionContractors.aspx