Sioux Falls General Contractor License (2026): Cost, Exam & Requirements

South Dakota has no state general-contractor competency license, but two mandatory requirements govern homebuilders in Sioux Falls. (1) The State requires a Contractor's Excise Tax License from the Dept. of Revenue — a TAX registration (2% excise tax on construction gross receipts), not a competency/qualification license, with no fee and no exam; every construction contractor must hold it before working. (2) The City of Sioux Falls requires a Residential Building Contractor License for anyone doing work on 1- & 2-family dwellings and townhomes inside city limits: the company's construction supervisor must pass the City's Construction Supervisor Examination, and the contractor must carry a $20,000 compliance bond and $300,000 general-liability insurance. The City separately licenses commercial building, electrical, mechanical/HVAC, plumbing, and sign contractors.

Residential Building Contractor License

Issued by City of Sioux Falls — Planning & Development Services, Building Services (Contractor Licensing) · (605) 367-8672

Fees

Exam$75
License$200
Residential Code Handbook (optional purchase; provided free on exam application)$10

Exam: Required. The contractor's designated construction supervisor must pass the City of Sioux Falls Construction Supervisor Examination before a license is issued (Code § 150.131) — a timed, open-book test based on the City of Sioux Falls Residential Code Handbook (provided free on exam application; also purchasable for $10). Offered once a month; a failed applicant may not retake within 30 days. The exam must be completed within 120 days of application, and the license secured within 90 days of passing. The $75 exam fee is due with the exam application. One hour of continuing education per license cycle is required before renewal (§ 150.136).

Experience: Not required. No stated experience requirement; qualification is by passing the Construction Supervisor Examination.

Bond: $20,000 surety bond required. $20,000 compliance bond, corporate surety, contractor as principal and the City as obligee for the benefit of the City and consumers (Code § 150.129). Aggregate surety liability capped at $20,000 regardless of the number of claims or years in force. Must be kept current at renewal. Source

Insurance: General liability: $300,000 single limits minimum. The contractor must deliver to the chief building official and maintain proof of a general liability insurance policy with single limits of at least $300,000 (Code § 150.130). Source

Covers enlargement, alteration, repair, improvement, conversion or new construction of any 1- or 2-family dwelling, townhouse, or associated accessory building for which a building permit is required, within Sioux Falls city limits (Code § 150.125). A parallel, narrower Residential Roofing and Repair Contractor License (roof covering, same-opening window/door replacement, siding) carries the same $20,000 bond, $300,000 GL, and Construction Supervisor exam. Exempt (§ 150.126): employees/bona-fide subcontractors of a licensee under that licensee's control; contractors performing work under another required city trade license; owner-occupants acting as their own contractor on their own single-family dwelling; and landlords acting as their own building contractor. Licenses expire March 1 of every third year (§ 150.135); renewal after 60 days but within one year adds a reinstatement fee equal to 50% of the renewal fee; lapse beyond one year requires re-examination. This City license is separate from — and in addition to — the mandatory State Contractor's Excise Tax License (SD Dept. of Revenue). The $20,000 bond replaced the prior $10,000 requirement for bonds issued/renewed after Dec. 15, 2014.

How to get licensed in Sioux Falls

Pass the required exam. The contractor's designated construction supervisor must pass the City of Sioux Falls Construction Supervisor Examination before a license is issued (Code § 150.131) — a timed, open-book test based on the City of Sioux Falls Residential Code Handbook (provided free on exam application; also purchasable for $10). Offered once a month; a failed applicant may not retake within 30 days. The exam must be completed within 120 days of application, and the license secured within 90 days of passing. The $75 exam fee is due with the exam application. One hour of continuing education per license cycle is required before renewal (§ 150.136).
Obtain the required insurance coverage and provide a certificate.
Secure the required surety bond.
Submit your application and fees to City of Sioux Falls — Planning & Development Services, Building Services (Contractor Licensing).

Frequently Asked Questions

Do I need a general contractor license in Sioux Falls?

How much does a contractor license cost in Sioux Falls?

The license fee is $200. An exam is also required.

Is an exam required for a Sioux Falls contractor license?

Yes. The contractor's designated construction supervisor must pass the City of Sioux Falls Construction Supervisor Examination before a license is issued (Code § 150.131) — a timed, open-book test based on the City of Sioux Falls Residential Code Handbook (provided free on exam application; also purchasable for $10). Offered once a month; a failed applicant may not retake within 30 days. The exam must be completed within 120 days of application, and the license secured within 90 days of passing. The $75 exam fee is due with the exam application. One hour of continuing education per license cycle is required before renewal (§ 150.136).

Do I need a bond for a Sioux Falls contractor license?

Yes, a $20,000 surety bond is required.

Next steps

You know the requirements for general contractors in South Dakota— here's how to actually pass and apply.

Pass the exam →What to study, prep courses, and first-try strategies for the contractor license exam.General Contractor requirements in every state →Compare apprenticeship hours, exams, fees, and the full path to getting licensed.

Sources

Last verified 2026-07-02 · Operator-verified