What distinguishes a residential contractor license from a commercial contractor license?

A residential contractor license is specifically designed for professionals who engage in construction, remodeling, or repair work on residential properties. This includes single-family homes, duplexes, and multi-family dwellings, focusing on the needs and requirements that are unique to residential construction. The key distinction lies in the scope of work permitted under the license; residential contractors are authorized to work only on residential properties, ensuring that they adhere to the relevant building codes, safety standards, and homeowner regulations that apply specifically to such environments.

This limitation is essential for maintaining quality and safety in residential construction, where the needs of homeowners differ significantly from the demands of commercial construction, which typically involves larger projects, different materials, and distinct regulatory requirements.

The other options present misunderstandings about the licensing categories. For instance, while some residential contractors may also work on commercial projects, a residential license does not cover commercial work. Additionally, the costs associated with licenses can vary based on different factors but are not inherently higher for residential licenses in comparison to commercial ones. Finally, commercial licenses are not restricted only to governmental projects; they can also cover private and industrial projects. Thus, the exclusivity of the residential license to residential properties is what makes the correct answer accurate.