Delaware Contractor License Bond

The starting cost for a contractor license bond in Delaware starts at around $100. For professionals aspiring to work in Delaware's construction sector, it's essential to understand the expenses tied to securing a surety bond. This cost, often referred to as the bond premium, is shaped by numerous factors.

The bond requirement for Delaware contractors depends on their location. Your city or county authorities set the exact bond amount that you must post. However, you don’t pay the whole bond amount to get bonded. You only cover a bond premium, which is a few percentage points of that amount. For applicants with good finances, the surety bond cost is likely to be 1% - 3% of the bond amount. Rates for applicants with slightly lower scores are up to 5%, and for applicants with even lower scores - upward of 5%.

Your exact bond price is formulated on the basis of your personal and business finances. When you apply for a surety bond with us, we’ll take a look at your personal credit score, business documents, fixed and liquid assets, as well as professional experience. Your bond price is likely to be lower if your overall application is solid.

You can consult the bond premiums in the tables below for an estimate of the cost of your bond.

It can be a challenge to get the contractor license bond you need if you have problematic finances, tax liens, bankruptcies, or civil judgements. However, it is by far not impossible.

The rate for such applicants is higher, somewhere in the range of 5%-10%, which compensates for the higher risk. You can learn more about getting bonded with a low credit score, from our Bad Credit Surety Bonds page.

Begin by filling out our brief online form. Once it’s submitted, we’ll get in touch with you promptly to offer a free, no-commitment quote. We handle the majority of the necessary bond forms, ensuring you're mostly free from paperwork hassles. Should you have any inquiries, feel free to call us at (877)-514-5146.

Not all contractors in the state have to get bonded in order to obtain their Delaware contractor license. However, some cities and counties do require contractors to obtain a surety bond.

• In the City of Newark, general contractors, subcontractors, and minor renovations contractors need to post license bonds. Bond amounts vary from $10,000 to $200,000 and depend on the license type. The bond guarantees you will follow the city’s Construction Codes, as well as federal and state regulations.
• In the City of Wilmington, plumbers and contractors working on public streets, sidewalks and curbs also need to get bonded with the city authorities.
• In New Castle County, Class A, B, C and U contractors, as well as master HVACR contractors, master plumbers, sewer and drainage cleaners, decorative appliance contractors, outside utility contractors, and third party inspectors all need a license bond. The bond ensures your compliance with the New Castle County Building Code, as well as with state and federal laws. Bond amounts vary between $10,000 and $200,000.
• Non-residential contractors who want to conduct their activities in Delaware need to get bonded as well. They must provide a bond in an amount equal to 6% of the project value of the work they want to execute.

We assisted Liam, a contractor from Kent County, in navigating these complexities. He was unsure about whether he required a Class A or Class B contractor license to conduct his business in the neighboring county. Once that was clear, we were happy to provide Liam with the surety bond he needed to obtain his license.

A Delaware Contractor License Bond is a category of surety bond that contractors must obtain to lawfully conduct business in Delaware. This bond guarantees that contractors comply with the state's standards and rules pertinent to their particular field or occupation. It acts as an assurance that the contractor will execute their responsibilities with integrity, in alignment with contract stipulations, building regulations, and other relevant laws.

If any unlawful actions on your side lead to damages for another party, they can seek compensation by making a claim on your bond.

Your contractor license bond does not protect your business. Instead, it safeguards the interests of your customers. If they are harmed by any illegal actions that you might engage in, they can make a claim on your bond. The maximum sum they can seek as a reimbursement is the bond amount you have posted.

Even though the surety may repay the harmed party initially, you are liable to cover all costs related to proven bond claims. This means that it is a wise idea to avoid claims as much as possible. They can be a serious threat to your finances and reputation.