Construction Work Regulated:

Electrical, plumbing and asbestos abatement work require state licenses. Highway construction projects over $100,000 requires pre qualification by the state.

License Requirements

Highway Pre qualification:

• Contractors must submit experience history and audited financial statements at least 14 days prior to the date of the letting of the bid on projects over $700,000. Prequalification is good for 18 months from the date of the financial statement. Bid limits are set by a specific formula applied to the financial statements. Application processing averages one week.
• There were 191 pre qualified contractors as of October 1995.

Electrical Contractors:

• Applicants must pass a trade examination with a minimum score of 70%. Two years journeyman experience and a $10,000 bond is also required. Application processing takes 30 to 45 days.

Plumbing Contractors:

• Applicants must pass a trade examination with a score of 80% and provide documentation of six years experience. The average processing time on applications is 30 days. There were 500 licensees as of October 1994.

Other:

• All persons intending to engage in realty improvements in South Dakota are required to have a Contractors' Excise Tax License.
• Bond requirements for public works contracts under $25,000 may be waived. Performance/payment bonds are required in an amount of 100% of the contract price when over $25,000.

Reciprocal Agreements

South Dakota has electrical reciprocal agreements with Minnesota, Nebraska and North Dakota.

Plumbing reciprocity exists with Colorado, Minnesota, North Dakota and Montana.

License Types

Electrical:

• Master
• Journeyman

Every contractor is required to pass the OSHA exam.