Mississippi Contractor Bond Requirements Explained
Depending on the type of work you do and your location, your local licensing authority may require that you post a contractor license bond before it grants you a license or a permit. The bond language varies by location, but it usually serves as protection for your clients, employees, and the state.
By posting the bond, your promise to adhere to all laws, regulations and building codes– or face a penalty in the form of a claim against your bond. Each bond has a total bond amount which signifies its maximum coverage. It’s important to understand the terms of your license thoroughly in order to avoid claims.
If you have additional questions about becoming a bonded contractor in Mississippi, you can check the sections below or simply call us at (877)-514-5146 and we’ll answer all your questions as best as we can.
Questions about Contractor License Bonds
- Where are Mississippi contractors required to get bonded?
- How much does a contractor license bond cost in Mississippi?
- Can I get bonded if my credit score is low?
- How long does the application process take?
- How do I become a licensed contractor in Mississippi?
- How are claims handles for these bonds?
Where are Mississippi contractors required to get bonded?
Here are the locations where there is a contractor license bond requirement:
- City of Southaven
- County of Rankin
- Tate County
Other bonding requirements for contractors in Mississippi
Mississippi contractors who work on multiple projects might be required to obtain a blanket Mississippi contractor tax bond to ensure their tax compliance.
Non-resident contractors who perform work valued in excess of $75,000 will also need a tax bond.
How much does a contractor license bond cost in Mississippi?
The cost of your bond depends on your location and license type. There are three bond amounts for Mississippi contractors: $2,000, $5,000 and $10,000, while the bond amounts are not fixed only in McComb and Pearl.
However, these amounts aren’t the cost of getting bonded. These bonds are paid for in premiums. To get an estimate of yours, take a look at the table below.
|Bond Type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Contractor bonds in Batesville, Brandon, Clinton, County of Rankin, City of Southaven, Jackson, Madison, Meridian, Richland, Ridgeland, Tate County, Tupelo
Tupelo Plumbing Contractor Bond
|$5,000||$100||$100 - $125||$125-$250||$250-$500|
|Tupelo Mechanical Contractor Bond||$10,000||$100-$150||$100-$300||$300-$500||$500-$1,000|
It’s important to understand that the above amounts are only estimates based on your credit score. Numerous other factors, such as your experience and your financials, can also influence your costs. If you want to learn more about them, check out our “What Does a Surety Bond Cost?” page.
Can I get bonded if my credit score is low?
Applicants who have a low credit score (considered 650 or below) are considered high-risk by surety bonds companies. This is why they must usually pay elevated premiums in the range of 3% to 10%.
A bad credit score alone, however, will not prevent you from obtaining the bond you need. There are certain red flags, such as open bankruptcies or late child support payments that will lead to the rejection of your application. But for most cases, you will be able to get bonded via our bad credit surety bonds program.
How long does the application process take?
Applying for your Mississippi contractor license bond is a short process. All you need to do is submit our online application– it takes approximately five minutes. If you submit ownership information, we can give you a more precise quote, which will save even more time.
After we contact you with your free no-obligations quote, we will let you know what other paperwork we might need. Under the usual circumstances, we can send your bond form in the mail within one or two business days.
How do I become a licensed contractor in Mississippi?
Besides posting a contractor license bond, the State Board of Contractors will require you to go through a number of other steps when you apply to get licensed. Some of these steps vary, depending on what type of contractor license you are applying for, so you should always make sure your contact the Board before you submit your application. Here are some of the requirements for general contractors:
- Submit a CPA statement showing a minimum net worth of $50,000
- Successfully pass 2 examinations (trade; business and law)
- Obtain an application from the Board (call 1-800-880-6161)
- Pay a $200 application fee
These requirements are subject to change so use them as reference only.
How are claims handles for these bonds?
If you are found to be in violation of the building or tax codes, or otherwise fail to adhere to your bond’s terms, you can face a bond claim. A bond claim serves to compensate a third party that has suffered loss or damage due to your violation. The maximum sum of the claim cannot exceed the bond’s total amount.
If you have been notified of a valid claim, you should make good on it before it goes to court. That means the surety needs to cover the costs for you and then sue you for all expenses incurred.
Sometimes, it so happens that a claim has no valid ground. In cases like these, you can choose to fight it in court and even get your surety’s legal assistance. For that purpose, keep all documentation concerning your communication with the claimant– it can help you make your case in court.