Rhode Island Contractor License Bond

In Rhode Island, underground utility contractors who engage in any kind of installation, repair and/or replacement of sewer lines, water lines, and storm drainage lines, have to obtain a $20,000 surety bond. This is an essential part of the licensing procedure with the state's Contractors' Registration and Licensing Board. The purpose of the bond is to guarantee that the contractor will fulfill their legal obligations in relation to any underground utility works, which should be executed in line with the standards set by the Department of Public Works.

The surety bond amount that you need to obtain for your Rhode Island contractor's license as an underground utility contractor is $20,000. In order to get bonded, you have to cover a small fraction of this amount, called the bond premium. It is determined on the basis of your personal and business financials.

When evaluating your surety bond cost, your surety needs to take into consideration your personal credit score, business finances, and any liquidity and assets you may have. By assessing these indicators, it aims to measure the level of risk involved in providing you with a bond. The lower it is, the smaller your bond premium will be.

It is possible to get a Rhode Island contractor license bond even if your finances are not perfect. If you are facing issues such as a low credit score, tax liens, bankruptcies, and any civil judgments, you can make use of our Bad Credit Surety Bonds program.

As the bonding risk is higher, the bond premiums are typically between 5%-10%. Due to our partnerships with a number of A-rated, T-listed surety companies, however, you can still obtain a top bonding option with us.

You can follow these steps to obtain your contractor license bond:

1. Complete our online application form (it takes 5min)

2. Our bonding experts will send you a free, no-obligation quote

3. You can then purchase the bond online

4. We will deliver to you a digital and a hard copy of your bond

The How to Get Bonded page provides extensive information about the intricacies of the bonding process.

For further queries, or if you need assistance with your application, you can call us at (877) 514-5146.

If you fail to fulfill your obligations as a licensed and bonded underground utility contractor in Rhode Island, you may face a claim against your surety bond. This is how fair compensation can be sought for any damages that you may have caused. The maximum penalty can be up to the full bond amount, which is $20,000 in this case.

On proven bond claims, the surety that has bonded you may pay the costs initially. You are obliged to repay it in full afterwards, as per the bond indemnity language. Thus, claims can bring serious financial problems for your contracting business, and it is best to avoid them.