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How Much Does a Delaware Contractor License Bond Cost?
The cost of a Delaware contractor license bond starts at $100 for most cities and state-required bonds, depending on the trade and location. For example, Wilmington plumbing contractors need a $3,000 bond, while the City of Newark requires a $10,000 bond for Minor Renovation Contractors with construction costs of $1 to $24,999, and a $25,000 bond for higher construction costs.
You do not need to pay the full bond amount in order to be licensed for your trade activities. Instead, a bond can be purchased through a Delaware surety company at a premium. Premiums range from 1% to 10% of the required bond amount.
The applicant’s financial assets, professional experience and credit impact the rate. We bond more than 99% of our applicants and issue bonds for most credit scores.
If your credit score is 700 or higher, you will receive a 1% to 3% rate. With a score falling between 600 and 699, the rate is 3% to 5%. With a lower credit score, the rate is 5% to 10%.
|
Surety Bond Cost Based on Credit Score |
||||
|
Surety Bond Name |
Surety Bond Amount |
Over 700 |
Between 600 - 699 |
Below 599 |
|
Delaware Division of Revenue Non-Resident Contractor License Bond |
varies |
- |
- |
- |
|
City of Newark Contractor License Bond |
$10,000 |
$100 - $300 |
$300 - $500 |
$500 - $1,000 |
|
City of Newark Contractor License Bond |
$25,000 |
$250 - $750 |
$750 - $1,250 |
$1,250 - $2,500 |
How to Get a Delaware Contractor License Bond
1. Determine the Surety Bond You Need
The Delaware Division of Revenue is the authority for non-resident contractor bonds. Numerous municipalities in the state have contractor license and bond requirements as well. Resource links are listed below.
With over 10 years of experience providing bonds to Delaware contractors, we are pleased to assist with your bond needs. Our streamlined process makes it easy to buy your bond, and our team is available to answer your questions.
2. Apply for Your Bond
To learn what your bond premium is, fill out the online application. You only need to provide your bond type, bond amount and a few other details. Many applicants can complete the application in a few minutes.
Henry recently got in touch with us to buy a Newark contractor bond. While he anticipated a long, stressful process, he was thrilled to have a bond quote in hand only minutes after completing a short application online. Then, he paid the premium online and got his bond without delay.
3. Get a Quote
We provide instant quotes to most applicants. However, if you have a more complex application, we will give you a quote within 48 hours.
4. Buy Your Bond
When you are ready to complete your purchase of a Delaware contractor bond, make your payment online. After doing so, you will receive your bond document in your inbox. If requested, we are happy to mail the bond to you as well.
Our bond experts are available to provide guidance as needed. If you have questions or need assistance, contact us or call us at (877) 514-5146.
Ready to apply for your contractor bond? Start with a FREE quote!
Contractors License Bond Requirements in Delaware
Most Delaware contractor bond requirements are established by local authorities. However, the Department of Revenue maintains requirements for non-resident contractor bonds. The required bond amount is 6% of the contract or subcontract price on all contracts of $20,000 or more, or 6% of contractor’s or subcontractor’s estimated cost-and-profit under a cost-plus contract of $20,000 or more.
When the aggregate of 2 or more contracts in 1 calendar year is $20,000 or more, the amount of the bond or bonds shall be 6% of the aggregate amount of such contracts.
The obligee for the non-resident contractor bond is the Delaware Department of Revenue. The obligee for locally mandated contractor bonds is the local governing authority. Cities that have local contractor bond requirements are:
|
Surety Bond |
Bond Amount |
Premium |
|
$2,000 |
From $100 |
|
|
City of Seaford Master Plumber Bond |
$5,000 |
From $100 |
|
City of Wilmington Contractor Bond |
$1,000 - $25,000 |
From $100 |
|
City of Wilmington Plumbing Contractor Bond |
$3,000 |
From $100 |
|
City of Wilmington HVAC Contractor Bond |
$3,000 |
From $100 |
|
$150,000 |
From $1,500 |
|
|
$50,000 |
From $500 |
|
|
$25,000 |
From $250 |
|
|
$200,000 |
From $2,000 |
|
|
$10,000 |
From $100 |
|
|
$25,000 |
From $250 |
|
|
$10,000 |
From $100 |
|
|
$50,000 |
From $500 |
|
|
$10,000 |
From $100 |
|
|
Sussex County Plumbing Contractor Bond |
$5,000 |
From $100 |
|
Town of Laurel Plumbing Contractor Bond |
$5,000 |
From $100 |
|
$200,000 |
From $2,000 |
|
|
$150,000 |
From $1,500 |
|
|
$50,000 - $100,000 |
From $500 |
|
|
$50,000 - $200,000 |
From $500 |
|
|
$10,000 - $25,000 |
From $100 |
To continue working as a contractor in Delaware, you must maintain the required surety bond for your trade. You can easily maintain your bond by making the annual renewal payment. We will contact you at each renewal period with instructions.
How to Get Your Delaware Contractor License
Our Delaware contractor license guide provides full details about getting licensed to do business in this state. The specific documentation required varies by location and trade. However, common requirements include:
- Application
- Surety bond form
- Fees
- Professional resume
- References
- Liability insurance
- Corporate documents filed with the Secretary of State, if applicable
For full details about the licensing procedures and specific documents required, contact your local authority. For information about the non-resident contractor license bond, contact:
Delaware Division of Revenue
Carvel State Office Building
820 North French Street
Wilmington, DE 19801
Phone: (860) 297-5962
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Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
