Connecticut Contractor License Bonds Explained
Different types of contractors in Connecticut need to go through a licensing process that ensures their compliance with city and state requirements. In many cases, this entails providing a contractor license bond.
The purpose of this bond is to safeguard the interests of your customers against potential unlawful actions you make commit as a contractor working on a construction project.
Your bond represents a three-party contract, with your business being the principal that needs the bonding. The relevant authority that requires it is the obligee, while the third party is the surety, which provides you with the bond.
Questions about Contractor License Bonds in Connecticut
Who needs this bond?
Various types of specialists across cities and municipalities in Connecticut may need to post a contractor license bond in order to launch legal operations in the state.
Bristol: Excavation contractor permit bond - $10,000
Cromwell: Drain layer bond - $5,000
East Windsor: Drain layer/ excavator bond - $5,000
Fairfield: Drain layer bond - $10,000
Farmington: Drain layer bond - $5,000
New Britain: Sidewalk and curb contractor bond - $5,000
Rocky Hill: Private contractor on public right of way road bond - $10,000
Seymour: Sanitary sewer connection bond - $10,000
The Metropolitan District: Sewer contractor bond - $10,000
Trumbull: Encroachment/ street opening contractor bond - $10,000; Sanitary sewer connection bond - $5,000
How much does the bonding cost?
The surety bond amount that you have to obtain for your license is set by your local authorities. On the basis of this amount, your bond premium is formulated as a fraction of it. Its exact sum depends on the strength of your personal and business finances.
In order to determine your surety bond cost, the surety provider has to consider some important factors, such as your personal credit score, company finances, and liquidity and assets. By doing this, it can judge how risky it will be to get you bonded. The bond premium gets lower when your overall profile is stable.
|Connecticut Contractor License Bond Cost Based on Credit Score|
|Surety bond name||Bond amount||Credit Score|
|Above 700||Between 650-699||Between 600-649||Below 599|
|East Windsor drain layer/ excavator, New Britain sidewalk and curb contractor, Farmington drain layer, Cromwell drain layer, and Trumbull sanitary sewer connection bond||$5,000||$100||$100-$125||$125-$250||$250-$500|
|Bristol excavation contractor, East Hartford drain layer, Seymour sanitary sewer connection, Rocky Hill private contractors on public right of way, Trumbull: encroachment/ street opening contractor, Fairfield drain layer, and Metropolitan District sewer contractor bond||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
Can I get bonded with problematic finances?
It can be complicated to obtain a contractor license bond if you have bad credit or other financial issues. Lance Surety Bonds' Bad Credit Surety Bonds program is designed for applicants struggling with low credit scores, tax liens, bankruptcies, and civil judgments.
Since the bonding risk is higher, the rates for bad credit bonds are between 5%-10%. Nevertheless, you can still obtain a top bonding option with us due to our excellent partnerships with the top A-rated, T-listed surety companies.
How do I obtain the bonding?
In order to obtain a Connecticut contractor license bond, you can follow these steps:
You will then receive a free, no-obligation quote
The bond can be bought online straight away
We will deliver to both a digital and hard copy of your bond
Would you like to explore the details of the bonding process? You can refer to our in-depth How to Get Bonded page.
For any questions you may have, or for help with your application, just call us at (877) 514-5146.
What if I receive a bond claim?
You may end up with a claim against your contractor license bond if you don't follow all applicable Connecticut laws. This is how harmed parties can seek financial compensation for the damages they have suffered. The maximum penal sum is the bond amount you have provided at the time of licensing.
The surety that bonded you will initially cover the reimbursement to the claimants on proven claims. You will need to fully repay it afterwards, as it set in the bond indemnity clause. Thus, it is best to stay away from situations that can create any claims, as they can hurt your business's reputation and finances.
- City of Bristol Excavation Contractor License and Bonding
- Town of Trumbull Encroachment / Street Opening Contractor Licensing and Bonding
- Town of Trumbull Sanitary Sewer Connection Contractor Licensing and Bonding
- Town of Cromwell Drain Layer's Bond Form
- Town of Farmington Drain Layer Bond Form
- The Metropolitan District Sewer Contractor Bond Form