Requirements for Contractors performing Demolition and Excavation Work
December 16, 2021
Effective January 1, 2022, the City of Chicago has updated the requirements for contractors performing demolition and excavation work.
Excavation Work
A contractor performing excavation work must be licensed as a General Contractor by the Department of Buildings. The required classification is based on the contract value. The “Excavator” license issued by the Department of Business Affairs and Consumer Protection has been discontinued.
Demolition Work
A contractor performing work classified as “ordinary demolition” must have a class A, B, C or D General Contractor license.
A contactor performing work classified as “complex demolition” must have a class A or B General Contractor license.
Class E General Contractors may not perform demolition work.
Insurance and Bonds
Minimum insurance requirements are verified by Continental Testing Services as part of the General Contractor licensing and renewal process. An additional wrecking bond is no longer required, and no information needs to be submitted directly to the Department of Buildings or Department of Law.
License Questions
General Contractor licenses, license upgrades, and renewals are processed on behalf of the City of Chicago by Continental Testing Services.
A list of currently-licensed General Contractors is available here.
Summary of General Contractor License Requirements
| License Type | Maximum Contract Value at a Single Work Site | Type of Demolition Activity Allowed | Minimum Insurance Required* |
| Class A General Contractor | unlimited | ordinary or complex | $5 million per occurrence (primary or umbrella) |
| Class B General Contractor | $10 million | ordinary or complex | $3 million per occurrence (primary or umbrella) |
| Class C General Contractor | $5 million | ordinary | $1 million per occurrence and $2 million aggregate |
| Class D General Contractor | $2 million | ordinary | $1 million per occurrence and $2 million aggregate |
| Class E General Contractor | $500,000 | none | $1 million per occurrence |
* For full insurance requirements, see Section 4-36-090 of the Municipal Code.