Which Contractor’s License Do I Need?
The license you need depends on what kind of work you do, how big your projects are, and where you're working.
- If you’re building homes or offices, you likely need a General Contractor License.
- If you’re doing one specific trade like plumbing or electrical work, you need a Specialty Contractor License.
- If you're working on roads, bridges, or public infrastructure projects, you’ll need a General Engineering Contractor License.
Let’s break everything down step by step to help you figure out which contractor’s license is right for your business, especially if you're working in Bangladesh.
Why Choosing the Right Contractor License Matters
A contractor’s license is a legal permit. It lets you do construction work officially and proves that you meet the government’s standards.
Why is this important?
- It keeps you compliant with the law.
- Clients trust you more.
- You can take on bigger jobs.
- You become eligible for public projects (like PWD or LGED work).
That’s why getting the right contractor’s license is key to growing your career the smart and safe way.
Understanding Contractor License Categories
There are 3 main types of contractor licenses:
General Contractor License
You can handle full construction projects from start to finish — homes, offices, showrooms.
Specialty Contractor License
You work in one trade, like plumbing, electrical, or masonry.
General Engineering Contractor License
You work on technical, large-scale projects like roads, bridges, or water systems.
Each has different rules, experience levels, and business needs — so let’s go deeper.
General Contractor License
This is for you if you want to manage the entire project — from supervision, hiring workers, to project delivery.
Use case:
- Building new homes or apartments
- Large commercial renovations
- Any job above the cost threshold (in Bangladesh, check the project value — e.g., BDT 5 lakh and above may require this license)
Common Requirements:
- 4 or more years of construction experience
- Pass trade and business exams
- Proof of income, insurance, and sometimes a performance bond
- Commercial and residential may need separate licenses
Specialty Contractor License
This is for skilled tradesmen — if you’re focused on one specific job like plumbing or painting.
Examples of trades:
- Electrician: Wiring, panels, lighting
- Plumber: Pipes, drainage, water systems
- HVAC: Cooling & heating systems
- Painting, roofing, tiling, landscaping, flooring, and so on
Each specialty has its own:
- Exam
- Safety rules
- Experience checklist
Tip: If you’re working mostly in one trade, this is the best fit over a general license.
General Engineering Contractor License
If you work on public infrastructure (like parks, flyovers, or bridges), this is the license for you.
Common for:
- Civil engineering work
- Government tenders (PWD, LGED in Bangladesh)
- Projects involving drainage, roads, tunnels, pipelines
Requirements:
- Engineering degree or experience
- High financial strength
- Bonding for public bidding
6. Other Factors That Affect Your License Type
Several things can change what license you need:
Project Value:
- Some areas only require a license over BDT 200,000 or more.
Location:
- Some areas in Bangladesh follow state-level (DIVISION) licenses, while others have local (UPAZILA/CITY) approvals.
Your Business Type:
- A sole trader may need simple documents.
- A Limited company (like an LLC) needs tax ID (BIN), TIN, and insurance papers.
Scope of Work:
If you’re offering multiple services (plumbing PLUS electricity), you may need:
- A general license, or
- Multiple specialty licenses
7. How to Know Which License You Need
Here’s a simple way to decide:
- List the services you’ll offer
- Visit your local LICENSING board
a. For Bangladesh, check PWD, LGED, RAJUK, or City Corporations
- Look for required contractor classes
a. Example: Class A (large projects), Class D (smaller private jobs)
- Contact municipal offices – ask if your trade needs a separate permit
- Review the project value rules
- Talk to an expert, like a construction consultant or lawyer
Common Things You’ll Need (for Any Contractor License)
- NID copy (proof of age, must be 18+)
- Proof of work experience (letters from past clients, photos, work orders)
- Education papers (SSC, HSC, or diploma)
- Business registration or trade license a. Apply through RJSC or City Corporation for Bangladesh
- Bank solvency or tax documents
- Insurance or bonding (based on project size)
- Passport-size photo
- Police clearance (especially for public project licenses)
How to Get a Contractor’s License – Step by Step
-
Choose the right license type
-
Match the educational and experience needs
-
Register your construction business
-
Gather financial docs and insurance
-
Submit the application with fees
-
Pass written exams
-
Get your license and renew it when required
-
What If I Work Without a License?
You might think you can skip the license, but that’s risky and not worth it.
Here’s what can happen:
- Fines by government
- Project shutdown
- Loss of contract or payment
- No chance to bid on public work
- Clients won’t trust or recommend you
Real case: A local builder in Dhaka started private house builds without a license. Mid-project, the city halted the job. He lost money, time, and all referrals.
Choosing the Right Path for Your Construction Career
Getting licensed is about more than meeting the law — it tells everyone that you mean business and you do quality work. It opens doors to high-paying, big-impact projects.
At Archiconnect, we help contractors with:
- Picking the right license type
- Preparing documentation
- Applying for public works category registration (PWD, LGED, etc.)
- Growing your construction business step by step
Final Thoughts
“The right contractor’s license depends on what type of work you do, how big your projects are, and where you operate.”
Don’t guess — know your license requirements and plan properly.
