The Complete Contractor License Bond Guide
Contractor License Bonds are required by most states to guarantee that a general contractor will operate their business in compliance with the rules and regulations pertaining to their specific contractor license. Ultimately, these bonds exist to protect the public from fraudulent practices or from being ripped off by a contractor. Lance Surety offers numerous CLB programs designed to get all types of contractors approved at excellent rates, in all 50 states. ||
It is important to understand that Contractor License Bonds are NOT the same as Bid and Performance Bonds, which is a common misconception. They guarantee the compliance with a state or local contractor’s license, where as most performance bonds guarantee that obligations of a contract are fulfilled.
Questions about Contractor License Bonds
Are Contract License Bonds the Same as Contract Bonds?
Contractor license bonds are different from contract bonds, including performance, payment and bid bonds. It’s a common misconception that the two types of bonds are the same, but it’s important to differentiate between them.
You’ll need a contractor license bond as a part of your licensing process with your local or state authorities. This type of bond is a prerequisite for obtaining the right to operate. It ensures you will act lawfully in your capacity as a licensed contractor.
In contrast, contract bonds are required on a project basis. You may need to get them before bidding on public or private construction projects. They guarantee your performance as a contractor on a specific project.
You may need a different type of contractor license bond depending on the license you want to obtain. The common types include:
- General contractor license bond
- Residential contractor license bond
- HVAC contractor license bond
- Electrical contractor license bond
- Plumbing contractor license bond
- Home improvement contractor license bond
- Roofing contractor license bond
- Landscape contractor license bond
- And others
The type of contractor license bond you’ll have to post also depends on the authority that requires you to get bonded. This means you may need to get a:
- State contractor license bond
- County or municipality contractor license bond
- City contractor license bond
Ready to start your bonding process? Just fill out our online application form for a free, no-obligations bond quote.
How Much Does a Contractor License Bond Cost?
The bond amount you have to post is determined by your local or state authorities. Your bond cost is a fraction of this amount.
Your surety sets your bond cost, known as premium, on the basis of your personal and business finances. The most important factor is your personal credit score. The stronger your profile is, the lower your price would be. It’s very rare that a collateral would be required for this type of bond.
While it’s more difficult to get bonded with bad credit, with Lance Surety Bonds, it’s certainly possible. You can use our Bad Credit Program to obtain the contractor license bond you need.
For a full overview of the bond price formation, you can review our detailed How Much Does a Surety Bond Cost? guide.
If you have more questions about your contractor license bond cost, just call us at (877)-514-5146.
How Do I Get a Contractor License?
The contractor license requirements vary across the U.S. Your state, municipal, or city authorities set the exact criteria you'll have to fulfill to get licensed.
Typically, you’ll need to do the following:
- Get training and hands-on experience in your specialty or trade
- Pass an exam proving your knowledge and skills
- Register a business entity and trade name in the state
- Obtain an Employer Identification Number from the IRS
- Get a general liability and a worker’s compensation insurance policy
- Obtain a surety bond
- Pay the required application and licensing fees
For a full overview of the licensing requirements in your location, check out the drop-down menu below to find your state.
Contractor Licensing Requirements per State
- Select your state
How to Get Bonded Guide [/question]
Contractor License Bonds by State
Select a state
- Select your state
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington D.C.
- West Virginia
Still Have Questions? Check Our FAQ Pages
What Our Clients Have To Say?
Kimberlee AblesQuick 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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Margie MartinezWe 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!