How to Hire a
Demolition Contractor
What Licensing Is Required for Demolition Contractors?
Demolition contractor licensing requirements vary by state. Unlike electrical or plumbing contractors (which are licensed at the state level in virtually every state), demolition contractors face a patchwork of state and local requirements.
States with specific demolition contractor licenses: California requires a C-21 Demolition Contractor license through the Contractors State License Board (CSLB). Florida requires a State Certified Building Contractor or a Certified Demolition Contractor license. Illinois requires a licensed contractor through the Department of Professional Regulation for structural demolition work.
States where general contractor licensing covers demolition: In Ohio, Texas, Virginia, Washington, and many other states, a general contractor license issued at the state or local level authorizes demolition work without a separate demolition-specific license. Verify the specific license the contractor holds and confirm it covers demolition in your jurisdiction.
States with local licensing: Many jurisdictions issue local contractor licenses independently of state requirements. Chicago, New York City, and other large cities have their own contractor licensing systems. A contractor licensed in the suburbs may not be licensed to work in the city.
Bonding and Insurance Minimums
Before signing any demolition contract, request certificates of insurance and a bond certificate. The minimum coverages you should require:
| Coverage Type | Minimum to Require | Why It Matters |
|---|---|---|
| General Liability | $1,000,000 per occurrence / $2,000,000 aggregate | Covers property damage to your property and adjacent properties during demolition |
| Workers' Compensation | State statutory limits | Without this, you can be liable for injured workers' medical costs and lost wages |
| Commercial Auto | $1,000,000 combined single limit | Covers trucks and equipment traveling to/from your site |
| Pollution/Environmental | $1,000,000 (for pre-1980 structures) | Covers asbestos fiber release and contamination claims |
| Contractor License Bond | State minimum (typically $5,000–$25,000) | Provides recourse if contractor fails to complete permitted work |
Request certificates of insurance naming you (the property owner) as an additional insured on the general liability policy. This means the contractor's insurer must notify you if the policy is cancelled or materially changed during your project.
Three Questions You Must Ask Before Signing
1. "Who will obtain the demolition permit — you or me, and what's included in your quote?"
Demolition contracts are inconsistent about what's included. Some contractors obtain the permit and build the fee into their quote. Others expect you to obtain the permit and hand it to them. Some include asbestos inspection; others don't. Some include utility disconnection coordination; others expect you to handle that entirely. Get explicit written answers about each cost component: permit fee, asbestos inspection, utility disconnections, debris disposal, and final grade. A "complete" quote from one contractor that excludes these items is not comparable to an all-in quote from another.
2. "How will asbestos be handled if it's found in this structure?"
This question reveals a great deal about a contractor's professionalism and their NESHAP compliance posture. A properly run demolition company will describe their asbestos inspection protocol, their relationship with a licensed abatement subcontractor, and how they handle unexpected asbestos discoveries mid-project. A contractor who says "we'll deal with it" or dismisses the question should be disqualified. Asbestos mishandling exposes you as the property owner to EPA penalties up to $25,000 per day even if you hired a contractor to manage the project.
3. "Can you provide the name of the C&D disposal facility and will you provide weight tickets?"
A reputable contractor will have no hesitation naming their disposal facility and agreeing to provide weight tickets (the receipt from the C&D landfill documenting the load). Contractors who are vague about disposal destination may be taking shortcuts — dumping in unpermitted locations or mixing asbestos-contaminated material with clean debris. As the waste generator, you have legal responsibility for proper disposal even if you hired a contractor to handle it. Weight tickets protect you by documenting compliant disposal.
Red Flags When Evaluating Contractors
- Requests for large cash deposits (more than 10–15% upfront)
- Cannot produce a current certificate of insurance on request
- Suggests skipping the permit "to save time"
- Has no physical business address (only a mobile number)
- Provides a quote without viewing the structure in person
- Quote is dramatically lower than other bids without explanation
- Cannot name the asbestos inspection company they use
- License number is not verifiable through your state licensing board's online lookup
Frequently Asked Questions
How many bids should I get for a demolition project?+
Get at least three bids for any demolition project. Demolition pricing varies significantly by contractor, equipment availability, and how busy the market is. Three bids give you a reasonable range and help you identify outliers — both suspiciously low bids (which should prompt questions about what's excluded) and unusually high bids. When comparing bids, make sure you're comparing apples to apples: confirm whether each bid includes the permit, asbestos inspection, utility coordination, debris disposal, and final grading.
Should I hire the same contractor who will build my new structure to do the demolition?+
Sometimes, but not automatically. Some general contractors who will build new construction are excellent at coordinating the demolition phase as part of a full project. Others are not set up for demolition work and prefer to subcontract it. Ask your general contractor directly: "Do you self-perform demolition with your own crew and equipment, or will you subcontract it?" If they subcontract, ask who the subcontractor is and verify that subcontractor's license and insurance separately. Don't assume the GC's license and insurance extends to cover a subcontractor's work without verification.
What happens if the contractor damages an adjacent property during demolition?+
This is exactly what the contractor's general liability insurance is for. If the contractor carries proper coverage and you are named as an additional insured, the contractor's insurer handles the neighbor's property damage claim. If the contractor is unlicensed or uninsured, the claim falls to you as the property owner. This is the most practical reason to require proof of insurance before work begins — not because it's a formality, but because demolition is a high-risk activity adjacent to other people's property and structures.