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How Much Does an Iowa Contractor License Bond Cost?
The cost of an Iowa contractor license bond is $100 and $500. For out-of-state contractors doing business in Iowa, the bond costs between $250 and $2,500. An additional bond to do business in Davenport costs between $100 and $2,500. In Sioux City, the additional bond is between $100 and $1,000.
The state requires contractors to have a $5,000 surety bond to get licensed. Out-of-state contractors must have a $25,000 bond to register with the state. In-state licensed contractors are not required to have a separate bond to register with the state.
Rather than pay the full bond amount, license applicants can purchase a bond through a surety company. The bond premium amount for a contractor license ranges between 1% and 10% of the bond amount.
The premium amount is determined by the applicant’s business financials and experience, personal assets and credit scores.
The premium rate for applicants with a 700 credit score or higher ranges from 1% to 3%. The rate for applicants with a credit score between 600 to 699 is 3% to 5%. A 5% to 10% premium rate applies to applicants with a credit score below 599.
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Surety Bond Cost Based on Credit Score |
||||
|
Surety Bond Name |
Surety Bond Amount |
Over 700 |
Between 600 - 699 |
Below 599 |
|
Iowa Contractor License Bond |
$5,000 |
$100 - $150 |
$150 - $250 |
$250 - $500 |
|
Iowa Contractor License Bond |
$25,000 |
$250 - $750 |
$750 - $1,250 |
$1,250 - $2,500 |
How to Get an Iowa Contractor License Bond
1. Determine the Surety Bond You Need
The Iowa Department of Inspections, Appeals and Licensing can answer your questions about contractor license bonds. The Iowa Division of Labor can provide information on the surety bond requirements for out-of-state contractors. For city-specific bond questions, contact the local authority.
2. Apply for Your Bond
Complete the online application to begin the easy process of buying your bond. Numerous bond programs are available for contractors with a wide range of credit scores, allowing us to provide bonds to more than 99% of applicants.
3. Get a Quote
Most of our customers receive an immediate quote from us. If your application is more complex, you will receive a quote within 48 hours of submitting your application.
Michael contacted us recently to buy a surety bond for a new contractor license. He spent a few minutes applying for his bond online and got an instant quote from us. After paying the premium online, he quickly received his contractor license bond via email.
4. Purchase Your Bond
Pay your premium online, and your bond will be available immediately. We’ll send your bond directly to your email account. Upon request, we can mail your bond to you as well.
Start your contractor license bond application. 100% money-back guarantee!
Contractor License Bond Requirements in Iowa
The Iowa Department of Inspections, Appeals and Licensing requires contractors to be licensed when providing specific services. These include sheet metal, hydronic systems, plumbing, HVAC, refrigeration, mechanical and plumbing services.
In-state contractors must provide a $5,000 surety bond at the time of application. Out-of-state contractors must register to do business in Iowa. To register, they are required to have a $25,000 bond.
A license may be suspended if the bond is canceled or not renewed. The state must be notified at least 10 days prior to the cancellation date. We will notify you prior to the expiration date of your bond with updated premium pricing and instructions for the bond renewal.
A few municipalities have contractor license requirements as well as related bond requirements. The bond requirements and obligee vary by municipality:
|
Surety Bond |
Bond Amount |
Premium |
|
$5,000 |
From $100 |
|
|
Iowa Contractor License Bond |
$25,000 |
From $250 |
|
$10,000 |
From $100 |
|
|
$10,000 |
From $100 |
|
|
$10,000 |
From $100 |
|
|
Davenport License and Permit Bond (Bond for Electrical, Mechanical, Plumbing and Sign Contractors) |
$5,000 |
From $100 |
|
$25,000 |
From $250 |
|
|
City of Des Moines Waste Hauling Contractor Bond |
$10,000 |
From $100 |
|
$10,000 |
From $100 |
|
|
$5,000 |
From $100 |
|
|
$10,000 |
From $100 |
|
|
$5,000 |
From $100 |
|
|
$10,000 |
From $100 |
|
|
$10,000 |
From $100 |
|
|
Clarke County Contractor License Bond |
$15,000 |
From $150 |
|
$5,000 |
From $100 |
How to Get Your Iowa Contractor License
You can get full details about becoming a licensed contractor through this Iowa contractor license guide. There may be additional requirements for city-specific licensing. Documentation required for contractor licensing includes:
- Application form
- Workers’ compensation Certificate of Insurance with Iowa Division of Labor as the certificate holder (If self-insured, a copy of a Certificate of Relief from the Iowa Division of Labor)
- Unemployment insurance number
- $125 registration fee (plus an additional $25 for mailed applications)
- $208.50 license fee
- Documentation and explanations for any criminal convictions related to the profession
- Evidence of a permanent place of business
- Public liability insurance coverage of at least $500,000
- Proof of active master of record license (held by the applicant or someone working for the applicant)
- A Division of Labor contractor registration number
- For out-of-state contractors, an out-of-state application form and a $25,000 surety bond
Contractor license application documents can be submitted through the online portal. Licensing documents can also be mailed to:
Iowa Department of Inspections, Appeals & Licensing
6200 Park Avenue, Suite 100
Des Moines, IA 50321
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What Our Clients Have To Say?
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!
