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Commonly Asked Questions about Construction Contracts in Montana

General contractors, including handymen, are not required to hold a license to work in Montana. However, if you have employees, you will be required to register with the Department of Labor and Industry, Contractor Registration Unit. To register, you must show proof of Montana workers compensation insurance.
Lump sum contracts, also called fixed price contracts, establish a fixed price for all of the materials and labor required to complete a job. This is the most basic and common type of construction contract.
Lump sum contracts, also called fixed price contracts, establish a fixed price for all of the materials and labor required to complete a job. This is the most basic and common type of construction contract. The 5 Key Types of Construction Contracts - Procore procore.com library construction-contra procore.com library construction-contra
Here are four main construction contracts to choose from, plus their pros and cons: Lump-Sum Contracts. Cost-Plus-Fee Contracts. Guaranteed Maximum Price Contracts. Unit-Price Contracts.
Read, complete, and submit the entire original and docHubd application and waiver form with a non-refundable $125 fee to the Department. Submit business documentation with your completed application that demonstrates you have an established business for each occupation listed on you application.
These five essential elements of a construction contract can result in major vulnerabilities if overlooked: Full Name, Address, and Signatures of Both Parties. Scope of Work. Project Cost and Payment Terms. Schedule of Work. Authority.
The state of Montana does not have a standard state business license. Since the state does not have a state sales tax, businesses are also not required to obtain any kind of sellers permit. There are, however, many statewide specialty licenses for certain professions and industries.
Montana takes its licensing and registration requirements seriously. Construction contractors found working without a registration or without a license can find themselves racking up a $500 fine for each occurrence. Performing electrical or plumbing work without a license is even worse.
In the state of Montana, general contractors are required to register and apply. To register, you should contact the Contractor Registration Unit at 1-406-444-7734. Contact the Business and Occupational Licensing Bureau at 1-406-841-2300 for applications for a plumbing or electrical license.