Contractor License Surety Bonds / Construction License Bond

• The majority of contractor license surety bonds that are code compliance bonds do not require any underwriting and can be issued without a credit check and cost about 1% of the bond amount with $100 being the minimum and lowest premium available for a 1-year term — but a discount on the bond premium is usually given to contractors that pay for more than 1 year up front.
• Those surety bonds that are not code compliance bonds and are license type bonds that do require some underwriting due to the bond type will typically require a review of a personal credit report; sometimes, but rarely, personal financials and business financials will be needed. These bonds typically cost 1% of the bond amount based on excellent credit, etc.
• Of course, we will always provide you with the lowest rates available on the market. And can typically handle all credit types and financial situations — from excellent to poor — as such those terms vary.

Contractor/Construction License Bonds are in place to protect the public, not the contractor. By posting a surety bond, a contractor is guaranteeing they will abide by all laws, rules, and regulations regarding construction work with that state, city, or county. Although every bond reads differently, for the most part they ensure the contractor performs their work in compliance with local construction and building codes. If there is any loss or damage due to faulty workmanship or material furnished or used by the Principal (contractor) then the Principal shall be liable to reconstruct, replace, repair, or pay for such damage or loss.

Bonding requirements vary from state to state, city to city, and county to county. Some municipalities require surety bonds while other do not. It is important to check with the local government to ensure you are following all rules and regulations, and to ensure you acquire any necessary licenses, permits or surety bonds before conducting any work.

Most Contractor/Construction License Bonds have an expiration date, those that don't are continued in full force from the effective date until canceled. Bonds can be canceled with written notice from the Surety to the Obligee (state, city or county requiring the bond) and the Principal. Most Obligees will require anywhere between 15 and 90 days notice prior to the cancellation effective date. The bonding company will renew and bill for the bond on an annual or biennial basis depending on the original term.

Contact The ProSure Group. As surety bond experts in business for over 23 years, The ProSure Group has issued thousands of contractor license bonds and has partnerships with more than 30 different surety companies. This ensures that we get you the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application and one of our specialists will quickly contact you.