How to Get Your Contractor License in New Castle County, Delaware
Contractors who want to operate in unincorporated New Castle County in the state of Delaware have to undergo a licensing procedure with the county authorities.
If you want to provide construction and building improvement services on this territory, you have to obtain a New Castle County contractor license. In order to do that, you have to meet a list of requirements that are specific for each license type. Among them is posting a contractor license bond, which is needed for permit endorsed licenses.
In this guide, you can get acquainted with the essential steps you need to take, so that you launch your contracting business in the county smoothly.
The New Castle County contractor license requirements
All contractors have to first obtain a Delaware Division of Revenue business license as a Contractor Resident or Non-Resident.
Before you start your licensing procedure in the county, you need to determine whether you would be conducting work on the territory of unincorporated New Castle County. You can check this through the Parcel Search on the website of the licensing authority, the Department of Land Use.
Afterwards, you have to clarify which of the two types of contractor licenses available in the county you have to obtain. They are the following:
- Non-permit endorsed license: you need this license if you want to engage in construction activity defined by Sector 23 of the North American Industry Classification System (NAICS) code that does not require a permit from the county’s jurisdiction, or represent HVACR and plumbing work that needs a separate license
- Permit endorsed license: you have to get this license if you want to conduct building and utility work
In addition, the permit endorsed licenses include additional options for building (residential and non-residential):
- Class U – work on projects with unlimited valuation
- Class A – projects up to $200,000
- Class B – projects up to $100,000
- Class C – projects up to $50,000
They also include more options for utility work:
- Decorative appliance
- Sanitary Sewer
- Outside Utility Connector
In order to start the licensing process, non-permit endorsed applicants have to complete the online license application form. You will need to provide your federal EIN number, as well as your Delaware business license number.
As for permit endorsed applicants, the procedure is as follows:
- Complete the 2019 Building Contractor Packet or 2019 Utility Contractor Packet, depending on your specialty
- Provide a copy of your State of Delaware Business License from the Division of Revenue
- Get a Certificate of Liability Insurance form the minimum coverage set by the county for your license type
- Obtain a surety bond
- If you’re permitting new homes, you need also a New Home Builders Warranty
- If you are an HVACR or plumbing specialist, you have to provide your State of Delaware Trade License for HVACR and Plumbing Contractors
- You may have to meet additional Specialty Trade Requirements depending on the license type you apply for
Obtaining your surety bond
Among the requirements that you have to satisfy as a permit endorsed applicant for a New Castle County contractor license is to provide a surety bond in the official form. The bonding amounts differ according to the license type that you seek:
- Class U building – $200,000
- Class A building – $150,000
- Class B building – $50,000
- Class C building – $25,000
- HVACR contractor – $25,000
- Master plumber, sewer and drain cleaner, and decorative appliances contractors – $10,000
- Outside utility contractors – $50,000
In order to get bonded, you have to pay only a fraction of the required bond amount, which is the bond premium. It is typically between 0.75% and 5%. The exact percentage is set on the basis of your financial strength. The factors that shape it include your personal credit score, business finances, and any fixed and liquid assets that you have. The bond premium is lower when these indicators are stable.
Have more questions about the New Castle County licensing and bonding requirements? Don’t hesitate to get in touch with us at 877.514.5146.
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