What does a Georgia contractor license actually cost? The honest answer: the exam fee is fixed and public, but the Board's published fee schedule is stale, so treat every other fee figure as "verify before you pay." Here is every cost category with the current numbers and the caveats.
This is an independent guide, not affiliated with the Georgia Board of Residential and General Contractors, PSI, or NASCLA. Licensing details change, so verify current requirements against the Board's official publications before you act.
The exam fee: $60
The PSI Business and Law exam fee is $60, paid when you register. This figure comes from the current PSI Candidate Information Bulletin and is the one fee you can count on. If you fail, current law lets you retake at any regularly scheduled examination with no waiting period, and each retake means another $60.
Application and license fees: verify current figures
The Board's official fee schedule (last revised June 2022) listed: exam/application $200 plus a $10 processing fee, renewal $100, late renewal $200, and reinstatement $300 plus $10. That schedule is stale, and fees may have changed. Check the Board's current fee schedule on the Secretary of State website before you budget. Do not rely on the 2022 figures as current.
The reference book
The exam is open book, and the only allowed reference is the Georgia-NASCLA Contractors Guide to Business, Law and Project Management, Georgia State Licensing Board for Residential and General Contractors, 3rd Edition. You must own the correct edition; the national NASCLA book and the 4th edition will not match the exam. Budget for the book as part of your exam costs, and buy it early enough to tab it before exam day.
Financial-responsibility costs
Georgia's financial requirements vary by category, and each option has a real cost:
- Residential-Basic: a $25,000 net-worth affirmation, a 24-month bank credit reference, a $25,000 surety bond, a $25,000 line-of-credit letter, or a $25,000 letter of credit. A surety bond for $25,000 typically costs a fraction of the face amount annually, but the exact premium depends on your credit. Bank letters and CPA-prepared documents carry their own fees.
- General: minimum net worth of $150,000, which must be documented, not just claimed.
- Limited Tier: minimum net worth of $25,000, with individual contracts capped at $1,000,000.
Insurance premiums
Georgia requires general liability of at least $300,000 per occurrence (Residential-Basic) or $500,000 (Residential-Light Commercial, General, and Limited Tier). Workers' compensation is mandatory at 3 or more employees. Auto liability minimums are 25/50/25. Premiums vary wildly by trade, claims history, and payroll, so get quotes early. These are annual costs, not one-time fees, and lapsed coverage triggers a 30-day change notice to the Board.
Continuing education
Annual CE is required: 3 hours (Residential-Basic), 6 hours (Residential-Light Commercial), up to 8 hours (Commercial General). Budget for course fees every year, not just at licensure.
Insurance: get quotes before you budget
Insurance is usually the largest first-year cost, and the only way to know your number is to get quotes. When you call agents, have these figures ready, because every Georgia contractor's policy starts from them:
- General liability: $300,000 per occurrence (Residential-Basic) or $500,000 (all other categories)
- Workers' compensation: required at 3 or more employees
- Auto liability: 25/50/25 minimums
Tell the agent your trade, your expected payroll, and your category. A residential remodeler with no employees gets a very different quote from a commercial general with twelve. Get at least three quotes; contractor GL pricing varies more than most people expect.
DIY study vs. a prep course
The exam is open book, which changes the prep-course calculus. A course can help if you have never taken a licensing exam or if you struggle with self-directed study, but the highest-value preparation is free or cheap: the reference book, a tabbing map, and disciplined practice with the lookup strategy. Many applicants pass with the book plus free practice questions and the free scored quiz. Spend money on prep in proportion to how much structure you need, not out of fear.
The hidden costs
- Exam prep: books, practice materials, or a prep course. The cheapest option is the reference book plus disciplined self-study.
- Retakes: $60 per attempt, with no limit on attempts.
- Time: the application, the financial paperwork, and the exam itself. Time off work has a cost.
- Unlicensed work: the minimum fine is $1,000 per offense, and unlicensed contracts are unenforceable. The most expensive path to a license is working without one first.
Putting it together
A realistic budget: the $60 exam fee, the current application and license fees (verify the schedule), the reference book, your financial-responsibility documentation, first-year insurance premiums, and CE. The step-by-step licensing path and realistic timelines help you plan the calendar side.
Try the free practice quiz
Before you spend a dollar on prep materials, find out what you actually need to study. Take the free 12-question Georgia Business and Law practice quiz, with explanations for every answer. Start the free quiz