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How Much Does a New Jersey Contractor License Bond Cost?
In New Jersey, contractor bond costs can start as low as $100, depending on the license type. Electrical contractors require a $1,000 bond, while HVAC and plumbing contractors each need a $3,000 bond.
However, you are not required to pay the full bond amount. A contractor bond can be purchased from an authorized surety company at a premium, which varies based on your credit score, business experience, and financial strength.
The premium typically ranges from 1% to 10% of the bond amount. For a credit score of 700 or higher, the rate is between 1% and 3%. A credit score of 600 to 699 qualifies for a 3% to 5% premium, while a score of 599 or lower results in a 5% to 10% premium. Here’s a breakdown of each bond type and how your credit score affects the cost.
|
Surety Bond Cost Based on Credit Score |
||||
|
Surety Bond Name |
Surety Bond Amount |
Over 700 |
Between 600 - 699 |
Below 599 |
|
New Jersey Contractor License Bond |
$1,000 |
$100 |
$100 |
$100 |
|
New Jersey Contractor License Bond |
$3,000 |
$100 |
$100 - $150 |
$150 - $300 |
|
New Jersey Contractor License Bond |
$3,000 |
$100 |
$100 - $150 |
$150 - $300 |
How to Get a Contractor License Bond in New Jersey
1. Determine the Surety Bond You Need
Obtaining a contractor bond in New Jersey is straightforward. Start by identifying the type of bond you need and the required bond amount. The New Jersey Division of Consumer Affairs oversees contractor bonds.
Additionally, each municipality and city in New Jersey has its own bond amounts and requirements specific to their jurisdiction and trade.
We recently assisted John, a contractor from Newark, in securing a bond for Hoboken. Frustrated by the complex licensing process, he found our streamlined approach to obtaining the bond both straightforward and hassle-free. This eased his stress and allowed him to start his work in Hoboken immediately, for which he was very grateful.
2. Apply For Your Bond Online
At Lance Surety Bonds, we want to help you get bonded as fast as possible. Our online application form is easy to use, even if you’ve never applied for a bond before. We just need some essential information about your business and the type of bond you need to get started.
3. Receive a Bond Premium Quote
In most cases, we process your application and provide a quote promptly. However, for more complex situations, it may take up to 24 or 48 hours to receive your quote. Rest assured, we always ensure you receive the best possible premium.
4. Pay the Premium
After reviewing your contractor bond quote, there’s just one final step: paying the bond premium online. Once this payment is processed, we will email the bond directly to you. If you prefer, we can also send a hard copy by mail upon request.
Should you have any questions or need further assistance, please feel free to contact us or call us at (877) 514-5146. We're here to help with any issues you might encounter.
Contractor License Bond Requirements in New Jersey
The New Jersey Department of Consumer Affairs requires contractors to post surety bonds with the State Board of Examiners to qualify for licensure as an electrical contractor, master plumber, or master HVACR contractor. Electrical contractors need a $1,000 bond, whereas HVAC and plumbing contractors require a $3,000 bond each. If you work in multiple trades, you’ll need a separate bond for each type of work.
Additionally, various cities and counties in New Jersey may have their own bonding and licensing requirements. Here’s a breakdown of all the different contractor surety bonds in New Jersey:
|
Surety Bond |
Bond Amount |
Premium |
|
State Board of Examiners Master HVACR Bond |
$3,000 |
From $100 |
|
State Board of Examiners Master Plumber Bond |
$3,000 |
From $100 |
|
State Board of Examiners Electrical Contractor Bond |
$1,000 |
From $100 |
|
Borough of Oakland Contractor Bond |
$20,000 |
From $200 |
|
Borough of Franklin Lakes Contractor Bond |
$30,000 |
From $300 |
|
City of Hoboken Contractor License Bond |
$10,000 |
From $100 |
|
City of Jersey City Contractor Bond |
$15,000 |
From $150 |
|
Township of West Deptford Sewer Contractor Bond |
$5,000 |
From $100 |
|
Township of Wyckoff Contractor Bond |
$10,000 |
From $100 |
|
Passaic County Highway Opening and Use Permit Bond |
$1,000 - $100,000 |
From $100 |
|
Jefferson Township Septic System Installer |
$10,000 |
From $100 |
|
Hudson County Street Opening Bond |
$1,000 - $100,000 |
From $100 |
|
Borough of Rutherford Street Opening Permit Bond |
$5,000 |
From $100 |
|
Borough of Saddle River Septic Systems, Alterations, and/or Installations Bond |
$10,000 |
From $100 |
|
City of Kearny Streetscape Bond |
$1,000 - $100,000 |
From $100 |
|
Township of Mahwah License and Permit Bond |
$1,000 - $100,000 |
From $100 |
|
Township of Neptune Street Opening Permit Bond |
$1,000 - $100,000 |
From $100 |
|
Union County Street Opening Permit Bond |
$1,000 - $50,000 |
From $100 |
How to Get Your New Jersey Contractor License
After learning how to get a New Jersey contractor license, you can proceed with the necessary steps to meet both state and local regulations. The specific documentation needed varies by trade and location. Commonly required documents include:
- Application
- Surety bond
- 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 a electrical contractor license, you can contact:
New Jersey Division of Consumer Affairs
124 Halsey Street
Newark, New Jersey 07102
Phone: (973) 504-6200
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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!
