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Most contractors specialize in one of three areas: new construction, remodeling, or historic restoration. Licensing requirements vary from state to state. In Oregon, for example, anyone who supervises construction or demolition must be licensed. In California, builders
and contractors must be licensed
if the project cost is $500 or more.
In any case, your contractor should meet or exceed the minimum state requirements. Contact your local building department for specifics. You can also check contractors-license.org for a state-by-state listing of licensing requirements.