Oklahoma Contractor License Bond Requirements
Oklahoma has a statewide bonding requirement for some contractor classifications. Moreover, several cities have adopted requirements of their own.
The purpose of contractor license bonds is to protect the state and contractors’ clients, and to ensure that contractors abide by the terms of their license and applicable local and state laws and regulations.
Contractors who breach the terms of the bond agreement can become liable for a claim up to the full amount listed on their bond.
For more specific information on the bond you are looking for, check out the sections below. If you still have questions, don’t hesitate to call us at (877)-514-5146.
Questions about Contractor License Bonds in Oklahoma
Where do Oklahoma contractors need to get bonded?
There is a statewide requirement for electrical, plumbing and mechanical contractors. The cities of Enid, Oklahoma City, Midwest City, and Tulsa, have additional bond requirements for some contractors.
The sections below contain more information about local requirements, and as a breakdown of the costs you can expect for each of them.
How much does an Oklahoma contractor bond cost?
The full amounts of these bonds vary between $1,000 and $10,000. Also known as the penal sum of the bond, this amount puts a cap on the maximum dollar claim that can be made against the bond.
Contractors need to pay annual premiums to maintain their bonds. Premiums vary between 1% and 3% for applicants with good credit, and may go up to 10% for those with a lower credit score.
|Bond Type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Electrical, plumbing and mechanical contractor license bonds||$5,000||$100||$100-$150||$150-$250||$250-$500|
|Fence Contractor Bond||$1,000||$100||$100||$100||$100|
|Sidewalk Contractor Bond||$2,000||$100||$100||$100||$100-$200|
|Sign Contractor Bond||$5,000||$100||$100-$125||$125-$250||$250-$500|
|Sprinkler Contractor Bond||$2,500||$100-$125||$100-$150||$150-$200||$175-$250|
|Sidewalk and Driveway Contractor Bonds||$5,000||$100||$$100-$125||$125-$250||$250-$500|
|Concrete Contractor Bond||$5,000||$100||$100-$150||$150-$250||$250-$500|
The above values are only estimations based on a contractor’s credit score. Some surety bond companies can choose to request additional information for your bond (or you may choose to provide it yourself), which can also affect your premium.
Examples include copies of business and financial statements, or a resume. Learn more on our surety bond cost page.
Oklahoma non-resident contractor bonds
Contractors whose residency is not in the state of Oklahoma but who wish to work there must post a non-resident contractor bond as an extra precaution. The full value of the bond is not fixed, but is calculated as follows:
- For projects below $100,000: three (3) times the tax liability of their Oklahoma-based contracts
- For projects above $100,000: 10% of the contract amount.
What do I need to know if I have bad credit?
The most important change for applicants with bad credit (as you can see from the table above) is the higher premium they pay. Since sureties take steps to minimize the risk associated with each bond, they give higher quotes to applicants with a low credit score, credit report issues or with no credit history.
The good news is that you can still get bonded despite these credit problems. 99% of our applicants successfully get bonded without the need to post collateral or find a co-signer. The only applicants whose applications are certain to be turned down are those with an open bankruptcy or late child support payments.
What is the application process like?
Applying for your bond is now faster than ever, thanks to our online application process. You need just a few minutes to submit the application and we take care of the rest.
We’ll contact you with your free bond quote, along with instructions on what additional paperwork we may need from you. As an industry standard, you will have to sign an indemnity agreement.
Usually, we can issue your bond in just 1-2 business days. We’ll send you the hard copy you need for your application by mail, but feel free to request digital copies either by fax or email. You can also call us at (877)-514-5146 during any stage of the application process if there’s anything you need to clarify.
How do I get an Oklahoma contractor license?
Licensing requirements vary based on your location and contractors type. Here are some of the common ones:
- Obtain liability and worker’s compensation insurance
- Pass the relevant examination
- Pay applicable fees
- Provide proof of sufficient experience
Before you start your application, it’s best to verify all eligibility criteria with your licensing body.