General Contractor vs Specialty Contractor in Washington

Washington draws this line with one rule, and L&I prints it on its own contractor registration application (F625-001): a general contractor "may perform more than one construction trade," and a specialty contractor "may only perform the trade selected." The form has a single box for the specialty trade. So the practical test is simple: if you will offer one trade, you register specialty with a $15,000 bond. If you will offer two or more trades, even on separate jobs, you register general with a $30,000 bond. The one exception is the handyman specialty, covered below.

What the law says

RCW 18.27.010 defines a general contractor as one "whose business operations require the use of more than one building trade or craft upon a single job or project or under a single building permit." A specialty contractor is everyone else, and a specialty contractor "may only subcontract work that is incidental to the specialty contractor's work." The bond amounts come from RCW 18.27.040: $30,000 for general and $15,000 for specialty. L&I applies the rule through the registration itself: you pick one specialty trade, and that is the trade you are registered to perform.

Quick examples

• Painting only: specialty, painting and wall covering (40). $15,000 bond.
• Roofing only: specialty, roofing (44). $15,000 bond.
• Roofing and drain cleaning: two classifications, (44) and (13), so general. $30,000 bond.
• Drywall and painting: two classifications, (15) and (40), so general. $30,000 bond.
• Kitchen and bath remodels: several trades on one job, so general. $30,000 bond.
• Solo handyman doing small home repairs under $2,000, no permits: handyman specialty (26), even across several trades. $15,000 bond.

The handyman exception

WAC 296-200A-016(26) creates a handyman specialty that is allowed to cross trades, with tight limits. The contractor "must be an individual who does all work personally without employees or other specialty contractors." A handyman "may perform more than one unrelated specialty trade or craft provided they do all work themselves," but all work is limited to "minor and casual work of existing residential maintenance and repair with a total dollar value of time and materials under two thousand dollars," and "work requiring a building permit may not be done by this specialty." An LLC or corporation can hold it if one person is identified as the handyman. The moment you hire an employee, use a subcontractor, take a job of $2,000 or more, or need a permit, you have outgrown it and need the general registration. Handyman work can still require plumber certification or an electrical license for those parts of a job. Full detail is in do you need a license for handyman work in Washington.

Trades that need a separate license

Plumbing runs under its own plumbing contractor license (chapter 18.106 RCW): a $6,000 bond, $250,000 in liability insurance, and a designated certified plumber. L&I says plumbing contractors who also do non-plumbing construction work can also register as a general or specialty contractor, with a separate bond. Electrical runs under its own electrical contractor license (RCW 19.28.041): a $4,000 bond and an assigned electrical administrator or master electrician. L&I notes that if an electrical contracting business also does non-electrical work, contractor registration may also be required. HVAC/R is a regular specialty (28), but the work "may also require" an electrical license and plumber certification. L&I also lists extra licensing for elevator, manufactured or mobile home installation, boiler, and asbestos work.

All 63 specialty classifications

These are the 63 specialty classifications in WAC 296-200A-016. Each one has its own scope definition in the rule, so read yours before you register.

1. Appliances, equipment
2. Asbestos and lead
3. Awnings, canopies, patio covers and exterior screens
4. Boiler, steam fitting, process piping
5. Cabinets, millwork and finish carpentry
6. Central vacuum systems
7. Closets
8. Commercial/industrial refrigeration
9. Concrete
10. Construction clean-up
11. Demolitions and salvage
12. Doors, gates and activating devices
13. Drain cleaning and snaking
14. Drilling, blasting and soil sampling
15. Drywall
16. Electrical (see chapter 19.28 RCW)
17. Elevator
18. Excavation, grading and land clearing
19. Fencing
20. Fireproofing and coating
21. Fire protection
22. Floor covering and counter tops
23. Framing and rough carpentry
24. Glass and glazing
25. Gutters and downspouts
26. Handyman
27. House moving
28. Heating, ventilation, air-conditioning and refrigeration (HVAC/R)
29. Industrial equipment/machines
30. Institutional equipment, stationary furniture, lab tables, lockers
31. Insulation and acoustical
32. Irrigation sprinkler systems
33. Landscaping
34. Lathing and plastering
35. Locks, security alarms and warning systems
36. Masonry
37. Manufactured/mobile home set up
38. Metal fabrication/sheet metal
39. Overhead/garage doors
40. Painting and wall covering
41. Paving/striping/seal coating
42. Plumbing (plumber certification required)
43. Pressure washing
44. Roofing
45. Sandblasting
46. Sanitation systems and/or side sewers
47. Scaffolding and safety railings
48. Service station equipment and maintenance
49. Siding
50. Signs
51. Steel erectors
52. Structural pest control
53. Suspended ceilings and acoustical tile
54. Swimming pools, spas and hot tubs
55. Tanks and tank removal
56. Tile, ceramic, mosaic and natural and manufactured stone
57. Tree removal
58. Utilities and telecommunications
59. Window coverings
60. Water conditioning equipment
61. Welding and ornamental metal
62. Well drilling
63. Wood/pellet and gas stove

What it costs either way

Both registrations use the same application and the same $150.20 fee, the same general liability minimum ($200,000 public liability and $50,000 property damage, or $250,000 combined single limit), and a UBI from the Department of Revenue. The difference is the bond: $30,000 general or $15,000 specialty. You pay an annual premium on that bond, not the face amount.

Common mistakes

• Registering one specialty and doing a second trade. A specialty registration covers the trade selected. Doing another trade means working outside your registration.
• Registering general "just in case." If you really do one trade, that doubles your bond for no reason.
• Treating the handyman specialty as a small general license. It is solo only, under $2,000 per job, existing homes only, and no permit work.
• Assuming plumbing or electrical are just specialty boxes. They need their own license, bond, and certified people.

Still not sure?

Ask L&I directly at [email protected] or 1-800-647-0982 and describe the exact work you plan to do. Or answer a few questions in the free roadmap builder and it will lay out your registration path in order.

General educational information for people starting a business in Washington. Requirements and fees change. Contractor Lane is not a law firm or tax advisor.