What type of builder is required to be licensed when undertaking construction work for compensation of $10,000 or more on a residential building?

A residential builder is required to be licensed when undertaking construction work for compensation of $10,000 or more on a residential building because this type of work typically involves significant regulations and standards to ensure safety and compliance with local building codes. Licensing helps to ensure that builders have the necessary skills and knowledge to perform residential construction tasks adequately, and it often involves having insurance and bonding to protect both the builder and the homeowner.

In many jurisdictions, the licensing process for residential builders includes verifying qualifications, experience, and adherence to regulations specific to residential structures. This licensing is important not only for the protection of the homeowner but also for maintaining industry standards.

Other roles like commercial builders, electrical contractors, and handymen may have their own licensing requirements, but the specific context of residential construction at this compensation level is what specifically mandates the need for a licensed residential builder.