To hire a general contractor in Chicago, confirm 3 things before you sign: a current City of Chicago general contractor license, insurance that fits the size of your project, and a written contract that spells out the scope, the price and the payment schedule. Then ask who will pull the permits, how changes will be approved and how you will be protected from liens. The rules below come from the City of Chicago Department of Buildings and Illinois law, as of November 2026.
Whether you hire Areté or another Chicago remodeling contractor, the same checks apply.
Start With the City of Chicago General Contractor License
The City of Chicago requires a general contractor license for most building construction, alteration, repair and demolition work within the city. A contractor needs it even to submit a bid for work that requires a building permit.
When Chicago Requires a Licensed General Contractor
The city’s permit guide puts it plainly: a licensed and insured general contractor is required for most construction, rehabilitation and demolition work, and only 1 general contractor is allowed on a project at a time. That contractor is responsible for making sure the permitted work is done safely, competently and within the scope of the permit.
The exceptions are narrow:
- Single-trade work. A job done entirely by a Chicago-licensed trade contractor, such as electrical repair by a licensed electrical contractor, does not need a general contractor.
- Your own primary residence. An individual may act as their own general contractor on an entirely residential property that is their primary residence, with no more than 6 units and no building taller than 3 stories. The exemption covers 1 property per calendar year and does not extend to work that needs a demolition permit or excavation notice.
Weighing the second route? Read reasons to hire a contractor instead of trying to DIY. Unsure whether your job needs a general contractor at all? See the differences between a handyman and a general contractor.
How to Look Up a Contractor’s License
The Department of Buildings runs a Contractor License Lookup that lists currently licensed trade contractors, plus those with recently expired or inactivated licenses. The city’s list of active general contractors shows each license number, the license expiration date, the insurance expiration date and whether the license is inactive.
Check that the business name matches the name on your proposal, that the license is current and that the insurance date runs past your project. A Chicago general contractor license is valid for 1 year from issuance, and the city automatically inactivates it if the contractor’s insurance policy expires.
Match the License Class to Your Project
Chicago issues 5 classes of general contractor license. Each class sets a maximum project value (unlimited for Class A) and a minimum for liability insurance. As of January 1, 2026, the Department of Buildings lists:
| License class | Maximum project value | Minimum insurance, per occurrence |
|---|---|---|
| Class A | Unlimited | $5 million |
| Class B | $20 million | $3 million |
| Class C | $10 million | $2 million |
| Class D | $4 million | $2 million |
| Class E | $500,000 | $1 million |
Project value is the fair market value of the materials and labor provided by all contractors and subcontractors at the same site. Make sure the contractor’s class covers your project’s total value. The limits for Classes B, C and D, and the higher insurance minimum for Classes C and D, took effect on January 1, 2026. For Class C and D licenses issued before that date, the higher insurance minimum applies when the policy on file expires, so confirm the current figures with the city.
Confirm Insurance Before Anyone Starts Work
The insurance behind a Chicago license is commercial general liability coverage from an insurer authorized in Illinois and rated B+ or higher by A.M. Best. As the city’s guide notes, the general contractor’s insurance helps protect the property owner, the neighbors and the City of Chicago if something goes wrong.
Illinois sets its own floor for home repair and remodeling businesses. Section 25 of the Home Repair and Remodeling Act calls for liability coverage of $100,000 per person and $300,000 per occurrence for bodily injury, and $50,000 per occurrence for property damage, unless the business has a net worth of at least $1,000,000.
In practice:
- ask for a certificate of insurance and check that its dates cover your whole project;
- ask whether the crew is covered by workers’ compensation;
- ask whether the contractor carries a bond, and what it covers, if that matters for your project;
- in a condominium, ask your building management what it requires from contractors before work begins.
Make Sure the Right Permits Are Pulled
A building permit is required before most construction, demolition and repair work in Chicago. Before issuing one, the Department of Buildings verifies that the contractors named on the application have the proper qualifications and insurance.
Who files depends on the project:
- Express permits. For most repair projects and some remodeling projects that qualify for the city’s Express Permit Program, documents from a licensed architect or engineer are not required.
- Plan-based permits. For a project that needs a plan-based permit, the city requires plans prepared by an Illinois-licensed architect or engineer, and only an Illinois-licensed architect or engineer or a City-licensed expediter can apply.
- Licensed trades. Electrical, masonry and plumbing contractors must be licensed by the city and named on the permit application.
Ask your contractor which permits your project needs, who will apply for them and when you will see the issued permit. Skipping one is costly: the city issues a stop work order, charges a penalty of $1,000 or more and in most cases triples the permit fee, and you may have to correct or remove the work at your own expense.
Get the Scope and Payment Schedule in Writing
The Illinois Home Repair and Remodeling Act covers single-family homes and buildings with 6 or fewer units. For work over $1,000, the contractor must give you a written contract or work order to sign before work starts. It must state the total cost, with parts and materials listed with reasonable particularity, any charge for an estimate, and the contractor’s business name and address. The contractor must also give you the state’s “Home Repair: Know Your Consumer Rights” pamphlet before you sign.
The Act does not apply to repairs in buildings with more than 6 units. If you own a high-rise condominium, ask for the same terms anyway.
What a Good Contract Includes
The state pamphlet lists the basic terms a contract should carry:
- the contractor’s full name, address and telephone number;
- a description of the work;
- starting and estimated completion dates;
- the total cost;
- the schedule and method of payment, including the down payment, later payments and final payment;
- the grounds on which either party may end the contract.
It also advises getting every estimate in writing, never signing a contract with blank spaces or one you do not fully understand, and holding back the final payment until the work is done to your satisfaction. If the sale is made at your home, the pamphlet notes you have 3 business days from signing to cancel; different rules apply if you are 65 or older.
How Change Orders Should Work
Changes are a normal part of remodeling, especially once walls are open in an older home. Agree up front on how a change is priced and approved: in writing, with its cost and its effect on the schedule, signed before the work is done.
If a change goes beyond what your building permit allows, the city requires an additional or revised permit first. Work beyond the permit can bring a stop work order and a suspended or revoked permit.
Protect Your Home From Liens
Under the Illinois Mechanics Lien Act, a contractor who improves your property can hold a lien on it for the amount owed. The state pamphlet adds that suppliers and subcontractors have a right to file a lien against your home if they are not paid for their labor or materials.
Section 5 of the Act makes it the contractor’s duty to give you, and your duty to require, a written statement under oath before you pay. It lists everyone furnishing labor, services or materials, and the amounts due to each. On an owner-occupied single-family home, the contractor must also give you a notice of this requirement, in the contract or as a separate printed statement, before your first payment.
The pamphlet advises asking for the sworn statement before you pay, obtaining lien waivers from contractors and subcontractors where appropriate, and consulting an attorney to learn more.
Check References and Reviews
Ask for recent references from projects like yours, and call them. The state pamphlet lists a contractor who will not provide references as a warning sign. Ask each reference whether the project finished on schedule, how changes were handled and who they spoke with day to day.
Read reviews on more than one platform, including the low ones: how a contractor responds to a problem says more than a run of perfect ratings. A contractor working under a name other than its owner’s real name must be incorporated or registered under the Assumed Business Name Act; the pamphlet suggests checking with the Secretary of State or the county clerk. The Department of Buildings also takes complaints about Chicago-licensed trade contractors.
Design-Build or Design-Bid-Build
The Associated General Contractors of America defines design-bid-build as a method in which the builder is chosen on the lowest total construction cost. In design-build, one team carries the project from design through construction.
With design-build, the people who design your space work alongside the people who build it, so the design and the budget develop together. With design-bid-build, you manage the handoff between designer and builder yourself.
Red Flags That Should Stop the Conversation
The state’s consumer pamphlet names the warning signs of home repair fraud, and its contract advice adds 2 more. Walk away from:
- door-to-door salespeople with no local connections who offer to work for far less than the market price;
- a company that lists only a telephone number or a post office box, particularly one from out of state;
- a contractor who will not provide references when asked;
- an offer to inspect your home for free (and never let anyone in who cannot show authentic identification);
- a demand for cash, or for a check made out to anyone other than the company or its owner;
- an offer to drive you to the bank to withdraw funds for the work;
- high-pressure sales tactics, or a contract with blank spaces.
Add 2 Chicago checks of your own: a contractor who suggests skipping the permit, and a license or insurance date you cannot find in the city’s lookup.
How Areté Approaches a Chicago Remodel
Areté has offered design-build remodeling in Chicago since 2002, with design and construction under one roof and an in-house interior design team. Every project is run by a Project Manager. Areté is rated 4.9 on Google across 180 reviews (as of October 2026), and Qualified Remodeler named the firm to its 2026 Top 500 list.
We welcome every question in this guide. If you are planning a kitchen in the colder months, our post on choosing the right contractor for a winter kitchen remodel in Chicago adds a few more.
Frequently Asked Questions
Does Chicago require a general contractor license for a remodel?
For most remodeling that needs a building permit, yes. The exceptions are narrow: single-trade jobs by a licensed trade contractor, and owners working on their own primary residence.
How do I check if a Chicago contractor is licensed?
Use the Department of Buildings Contractor License Lookup on chicago.gov. It shows current licenses and recently expired or inactivated licenses, and for general contractors, the insurance expiration date on file.
Can I act as my own general contractor in Chicago?
Possibly, on an entirely residential primary residence with no more than 6 units and no building over 3 stories, for 1 property per calendar year. The exemption does not cover work that needs a demolition permit or excavation notice.
Who applies for the building permit?
It depends on the permit. Only an Illinois-licensed architect or engineer or a City-licensed expediter can apply for a plan-based permit. For Express Permit work, ask your contractor who will file, and ask to see the issued permit before work starts.
What is a sworn statement in Illinois?
A written statement under oath from your contractor listing everyone furnishing labor, services or materials for your project and the amounts due to each. Under the Mechanics Lien Act, you should require it before you pay.
Ready to ask these questions in person? Schedule a consultation with Areté, bring this list, and we will answer every question on it.
