Iowa Contractor License Bond

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  • Bad credit program available

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How Do I Get Bonded?

What Is an Iowa Contractor License Bond?

Construction contractors in Iowa often need to get a contractor license bond to obtain their license. The bond may be required by state or city authorities, and its goal is to guarantee that contractors will comply with the law.

The Iowa contractor license bond safeguards the interests of contractors’ clients against fraudulent activities that might be committed by contractors. In case your contractorship fails to follow the rules, a bond claim can provide reimbursement to affected parties.

Your Iowa contractor license bond works like most other surety bonds do. It represents a three-party contract. Your contracting business is the principal. The obligee is the state or city authority that requires the bond, and the surety is the third party which provides the bond.

Apply for your contractor license bond today and lock your rate for 90 days!

Questions about Contractor License Bonds in Iowa

Who needs to obtain an Iowa contractor license bond?

The state bonding requirements apply only to out-of-state contractors working in Iowa. They have to provide a bond to the Iowa Division of Labor’s Contractor Registration.

A number of cities across Iowa may also require Iowa contractors to get a license bond. Some of them include Johnston, Eldridge Davenport and Bettendorf, among others.

Before you start your licensing, it’s best to check with your local authority whether you need to provide a bond.

How much does an Iowa contractor license bond cost?

The surety bond price depends on the bond amount you are required to provide. If you are an out-of-state contractor, you have to post a $25,000 bond.

Contractors may also need to post a bond between $5,000 and $10,000 to get a license from their city authorities.

Whatever your bond value is, you’ll pay only a fraction of this bond amount. This is called the bond premium. If you qualify for standard bonding, the premium can be between 1% and 5% of the amount. For a $10,000 bond, this means a price in the range of $100-$500.

How is your Iowa contractor license bond cost set? When you apply with a surety, you will have to showcase the strength of your finances. The surety will examine your personal credit score, company finances, as well as assets and liquidity. If the risk of getting you bonded is low, your bond price will be lower too.

For a full overview of how your bond price is set, you can consult our surety bond cost page.

Iowa Contractor License Bond Cost
Bond Type Surety Bond Amount Above 700 Between 650-699 Between 600-649 Below 599
Iowa contractor license bond for out-of-state contractors $25,000 $188-$375 $250-$750 $625-$1,250 $1,250-$2,500
Iowa contractor license bond (varies by city) Usually $5,000 to $10,000 $100 to $100-$150 $100-$150 to $100-$300 $150-$250 to $300-$500 $250-$375 to $500-$750

* This table provides a ballpark estimate of potential bond costs. Bond pricing can fluctuate over time due to a number of factors. For exact pricing, please complete an application.

Can I get bonded with bad credit?

Lance Surety Bonds runs a Bad Credit Surety Bonds program to help contractors with financial issues to obtain the bonds they need. If you have a low credit score, tax liens, bankruptcies, or civil judgements, you can still get bonded with us.

The usual bonding rates are between 5%-10%. As the bonding risk is higher, the increased premium compensates for it. We work with a number of A-rated, T-listed surety companies, so we can still find the best bonding rate for your particular situation.

How do I apply for an Iowa contractor license bond?

Apply online today to get your free Iowa contractor license bond quote. If you want to know your exact bond price, complete our full application and send your paperwork. We’ll deliver it in no time.

Start your contractor license bond application. 100% money-back guarantee!

Need more information about the bonding process? Make sure to go through our How to Get Bonded page for further details.

Lance Surety Bonds’ specialists are here to help. Just call us at (877) 514-5146 and we will assist you with your application, or answer any questions you might have.

What happens in case of a claim against me?

Your Iowa contractor license surety bond does not work like insurance for your contracting business. Instead, it’s there to protect your customers from fraud, misuse and non-completion of construction work, and to protect licensing authorities from non-payment of taxes or failure to follow local and state rules.

If you do not abide by state and city laws, this can lead to a bond claim. If the claim is proven, you will have to compensate affected parties up to the penal sum of your bond. Your surety will initially cover the costs, but you will have to reimburse it afterwards. This means that bond claims are a serious financial threat. The wisest course of action is to avoid them.

How do I get an Iowa contractors license?

Iowa construction contractors need to register with the Iowa Department of Labor. They have to follow the respective procedure set by the licensing body. The Iowa Contractors Guide is an excellent starting point for the licensing process.

Additionally, city authorities may require contractors to get licensed locally. You should check the exact requirements for your area.

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About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

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What Our Clients Have To Say?

  • Kimberlee Ables
    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!
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    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!

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