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In Washington, all contractors who perform work or who advertise or submit bids in this state must be registered with the Department of Labor Industries (LI), post a bond and carry general liability insurance coverage. A general contractor must maintain a $12,000 bond.
Construction Contractors Must Be Registered. Washington State requires all construction contractors to register with LI. State law also requires construction contractors to be bonded and insured to protect the public. Once registered, contractors can bid, advertise, and perform construction work.
To file suit against a contractor, file a summons complaint To serve the contractors bond: You must send to LI three copies of your Summons Complaint form. LI will serve the contractor and the bond company with the lawsuit.
ORS 701.990 It is a class A misdemeanor (0-12 months, maximum fine of $6250) for a contractor to: Work or undertake to work as a contractor without a license; or Intentionally use a contractors license number without the authorization of the licensed contractor.
The only real requirement for construction contracts in Washington is that a licensed contractor must include their name, address, and current registration number in their contract documents under RCW 18.27.
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In contract actions the applicable contract statute of limitations expires, regardless of discovery, six years after substantial completion of construction, or during the period within six years after the termination of the services enumerated in RCW 4.16.
State law also requires construction contractors to be bonded and insured to protect the public. Once registered, contractors can bid, advertise, and perform construction work. This can include constructing, remodeling, repairing and demolishing buildings, roads and other real property.
In Washington state you need a permit to do electrical and plumbing work. Because they do not require a handyman or general contractor to prove they know anything the state protects YOU by requiring these permits so the toilet will flush and the lights will come on once the work is done.

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