Contractor Bond: License Bonds by State
Contractor license bonds by state, plus the project bonds a contract requires.
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A contractor bond is a surety bond: license and permit bonds let you hold your contractor license, while project bonds back a specific construction contract. Contractor bonding starts with one application: we shop multiple surety carriers and bring back a quote.
Contractor license bonds by state
Contractor license bond rules are set state by state. Some states require a statewide bond before they will issue or renew your license, some bond only certain trades, and some have no statewide requirement and leave bonding to cities or individual projects. The amounts below are drawn from each state's licensing agency and can change; confirm the current figure with that agency, and see our contractor license bond overview for how these bonds work.
| State | Statewide bond | Amount | Agency | Local pages |
|---|---|---|---|---|
| Alabama | Statewide bond: Trade-specific | Amount: HVAC $20,000; residential roofers $10,000 | Agency: AL HVAC, Home Builders and GC boards | — |
| Alaska | Statewide bond: Yes | Amount: $5,000 to $25,000 by registration type | Agency: AK Dept. of Commerce, Community, and Economic Development | — |
| Arizona | Statewide bond: Yes | Amount: $2,500 to $100,000 by license class and volume | Agency: AZ Registrar of Contractors | — |
| Arkansas | Statewide bond: Yes | Amount: $10,000 | Agency: AR Contractors Licensing Board | — |
| California | Statewide bond: Yes | Amount: $25,000 | Agency: CA Contractors State License Board | Local pages: Los Angeles, CA, Fresno, CA, Long Beach, CA, Oakland, CA, Sacramento, CA, San Diego, CA, San Francisco, CA |
| Colorado | Statewide bond: No statewide license bond | Amount: Denver trades $10,000-$50,000; smaller cities $5,000-$25,000 | Agency: None statewide; Denver and other cities | — |
| Connecticut | Statewide bond: No statewide license bond | Amount: No bond for residential work (DCP) | Agency: CT Dept. of Consumer Protection | — |
| Washington, D.C. | Statewide bond: Trade-specific | Amount: Home improvement $25,000; electrical $1,000-$4,000; plumbing $5,000 | Agency: DC Dept. of Licensing and Consumer Protection | — |
| Delaware | Statewide bond: No statewide license bond | Amount: Nonresident contractors 6% of contract, jobs $20,000+ | Agency: DE Division of Revenue | — |
| Florida | Statewide bond: No statewide license bond | Amount: None for most state-certified; FICO 660+ or course | Agency: FL Construction Industry Licensing Board | — |
| Georgia | Statewide bond: Yes | Amount: $25,000 | Agency: GA Secretary of State, Prof. Licensing Boards | — |
| Hawaii | Statewide bond: Yes | Amount: $5,000 minimum, set case by case by the board | Agency: HI Dept. of Commerce and Consumer Affairs | — |
| Idaho | Statewide bond: Trade-specific | Amount: Plumbing and HVAC $2,000 | Agency: ID Plumbing and HVAC Boards (DOPL) | — |
| Illinois | Statewide bond: Trade-specific | Amount: Roofers $10,000 or $25,000; Chicago trades vary | Agency: IDFPR (roofers); City of Chicago | — |
| Indiana | Statewide bond: No statewide license bond | Amount: Indianapolis: $10,000 general and electrical; $5,000 HVAC | Agency: City of Indianapolis (BNS); no state bond | — |
| Iowa | Statewide bond: Yes | Amount: $25,000 out-of-state; plumbing and mechanical $5,000 | Agency: IA Dept. of Inspections, Appeals & Licensing | — |
| Kansas | Statewide bond: Not confirmed | Amount: Not confirmed; check with your city or county | Agency: Cities and counties | — |
| Kentucky | Statewide bond: No statewide license bond | Amount: No license bond; encroachment performance bond = estimated cost of work | Agency: KY Transportation Cabinet (permit bond); DHBC (licensing, no bond) | — |
| Louisiana | Statewide bond: No statewide license bond | Amount: Letter of credit, not a bond, if net worth not met | Agency: LA State Licensing Board for Contractors | — |
| Maine | Statewide bond: No statewide license bond | Amount: Portland excavation $25,000; installer $10,000 | Agency: None statewide; Portland, public works | — |
| Maryland | Statewide bond: Yes | Amount: $30,000 if net worth not shown | Agency: MD Home Improvement Commission | — |
| Massachusetts | Statewide bond: No statewide license bond | Amount: Nonresident contractors 6.25% of contract, $20,000+ | Agency: MA Department of Revenue | — |
| Michigan | Statewide bond: No statewide license bond | Amount: Detroit wrecking license $50,000 | Agency: MI LARA (no bond); cities set their own | — |
| Minnesota | Statewide bond: Trade-specific | Amount: Residential roofers $15,000; electrical, plumbing, mechanical $25,000 | Agency: MN Dept. of Labor and Industry | — |
| Mississippi | Statewide bond: Yes | Amount: $100,000 commercial jobs over $50,000; cities $2,000-$10,000 | Agency: MS State Board of Contractors | — |
| Missouri | Statewide bond: No statewide license bond | Amount: Local only; optional state electrical license | Agency: None statewide; city and county licensing (Springfield) | — |
| Montana | Statewide bond: No statewide license bond | Amount: None; license needs workers' comp proof only | Agency: MT Dept. of Labor & Industry | — |
| Nebraska | Statewide bond: No statewide license bond | Amount: Out-of-state $25,000; Omaha $10,000; Lincoln $5,000 | Agency: NE Department of Labor; cities | — |
| Nevada | Statewide bond: Yes | Amount: $1,000 to $500,000, set per licensee | Agency: NV State Contractors Board | — |
| New Hampshire | Statewide bond: No statewide license bond | Amount: Public works payment security at $75,000 state / $125,000 local | Agency: None statewide for general contractors; OPLC licenses trades | — |
| New Jersey | Statewide bond: Yes | Amount: $10,000, $25,000 or $50,000 by contract value or volume | Agency: NJ Div. of Consumer Affairs | — |
| New Mexico | Statewide bond: Yes | Amount: $10,000 at licensure and each renewal | Agency: NM Construction Industries Division (RLD) | — |
| New York | Statewide bond: No statewide license bond | Amount: NYC home improvement $20,000, or $200 Trust Fund | Agency: NYC Dept. of Consumer and Worker Protection | Local pages: New York, NY |
| North Carolina | Statewide bond: Yes | Amount: $175,000, $500,000 or $1,000,000 by license limit | Agency: NC Licensing Board for General Contractors | — |
| North Dakota | Statewide bond: No statewide license bond | Amount: None; liability insurance and WSI proof only | Agency: ND Secretary of State | — |
| Ohio | Statewide bond: No statewide license bond | Amount: Columbus, Cleveland $25,000; smaller cities $5,000-$15,000 | Agency: OCILB (no bond); cities bond GCs | — |
| Oklahoma | Statewide bond: Yes | Amount: $5,000 per licensed trade | Agency: OK Construction Industries Board | — |
| Oregon | Statewide bond: Yes | Amount: $15,000 to $80,000 by endorsement | Agency: OR Construction Contractors Board | — |
| Pennsylvania | Statewide bond: No statewide license bond | Amount: Local only, e.g. Philadelphia $10,000 demolition | Agency: None statewide; PA AG registers (no bond) | — |
| Rhode Island | Statewide bond: No statewide license bond | Amount: None; $500,000 liability insurance + workers' comp | Agency: RI Contractors' Registration and Licensing Board | — |
| South Carolina | Statewide bond: Yes | Amount: $20,000 to $350,000 (general); residential builders $15,000 | Agency: SC Contractor's Licensing Board; Residential Builders Commission | — |
| South Dakota | Statewide bond: Trade-specific | Amount: Electrical $10,000 undertaking; Sioux Falls $20,000 | Agency: SD Electrical Commission; Sioux Falls | — |
| Tennessee | Statewide bond: Trade-specific | Amount: $10,000 home improvement, nine counties | Agency: TN Board for Licensing Contractors | — |
| Texas | Statewide bond: No statewide license bond | Amount: City registration bonds $5,000, $10,000 or $25,000 | Agency: None statewide; cities, project owners | Local pages: Dallas, TX, Fort Worth, TX, Houston, TX, Amarillo, TX |
| Utah | Statewide bond: Yes | Amount: Greater of 30% of listed debts or $15,000-$50,000 class floor, when DOPL requires | Agency: UT Div. of Professional Licensing | — |
| Vermont | Statewide bond: No statewide license bond | Amount: Burlington: 100% of project cost on jobs over $6,000 | Agency: None statewide; Burlington, VTrans | — |
| Virginia | Statewide bond: Yes | Amount: $50,000 bond or net worth ($45,000 A, $15,000 B) | Agency: VA Dept. of Professional & Occupational Reg. | — |
| Washington | Statewide bond: Yes | Amount: $30,000 general; $15,000 specialty | Agency: WA Dept. of Labor & Industries | — |
| West Virginia | Statewide bond: No statewide license bond | Amount: Division of Labor wage bond sized by payroll | Agency: WV Division of Labor, Wage Bonding | — |
| Wisconsin | Statewide bond: Yes | Amount: $5,000+ bond (DSPS page: $25,000) or liability insurance | Agency: WI Dept. of Safety and Professional Services | — |
| Wyoming | Statewide bond: No statewide license bond | Amount: Jackson $20,000-$250,000; nonresident wage and sales-tax bonds | Agency: None statewide; counties, cities and towns | — |
California LLCs also need a $100,000 bond in addition to the $25,000 contractor bond (California LLC bond), and a Bond of Qualifying Individual is required if the license is qualified by a Responsible Managing Employee, or by a Responsible Managing Officer who does not own at least 10% of the voting stock.
Who needs a contractor bond?
It depends on your state, your trade and the job. Most states in the table above fall into one of three groups:
- Statewide bond. The state requires a license bond before it will issue or renew your license, as in California ($25,000) and Washington ($30,000 for general contractors, $15,000 for specialty contractors).
- Trade-specific. Only some trades are bonded statewide, such as HVAC contractors and residential roofers in Alabama, or electrical, plumbing and mechanical contractors in Minnesota.
- No statewide license bond. The state doesn't bond the license, but a city may: New York City requires a $20,000 bond (or a $200 Trust Fund payment) for home improvement contractors.
Separately, in any state a contract can require bid, performance and payment bonds tied to that job rather than to your license. See construction bonds.
Two kinds of contractor bonds
License and permit bonds
A license or permit bond is a condition of holding your contractor license: where one is required, the licensing agency requires it before it will issue, renew, or reactivate the license. In California, for example, a Contractor's Bond must be in place before CSLB can issue an active license, reactivate an inactive license, or renew an active license (Business and Professions Code Section 7071.6).
In California, the bond is filed for the benefit of consumers who may be damaged by defective construction or other license law violations, and for employees who weren't paid wages due to them. The amount is set by statute or by the licensing board. In California, CSLB notes it is not per job; it is the amount available for all the jobs you take on during the life of the bond. Amounts vary by state and by whether you're a general or specialty contractor. See our contractor license bond overview and the state guides for California, Washington, Arizona, and Nevada.
Project bonds (bid, performance, payment)
The second group needs a bond for a specific job. These are grouped as construction bonds. A bid bond backs your bid, a performance bond backs your completion of the work, and a payment bond backs payment to your subs and suppliers; the two together are performance and payment bonds. A maintenance bond is the related bond some contracts ask for after the work is done.
On federal construction, FAR Part 28 sets the thresholds. FAR 28.102-1 requires performance and payment bonds for any construction contract exceeding $150,000; under FAR 28.102-2 the performance bond is normally 100 percent of the original contract price and the payment bond is no less than the performance bond. For contracts greater than $35,000 but not greater than $150,000, the contracting officer selects two or more payment protections (a payment bond is one option), and you furnish one of them. A bid bond (FAR calls it a bid guarantee) is required whenever a performance bond is required, unless the chief of the contracting office waives it; per FAR 28.101-2 it is at least 20 percent of the bid price but no more than $3 million.
Contractor bonds by type
License & permit bonds
The bond your state or city requires before it will issue, renew, or reactivate your contractor license.
- Contractor license bondContractors who need a bond to get, renew, or reactivate a state license.
- Contractor license bond costContractors who want to estimate their license bond premium by credit and state.
- License bond requirementsContractors checking what their state board requires before applying for a license bond.
Project bonds
Bonds tied to a specific job — bid, performance, payment, and the related bonds a contract can ask for.
- Performance bondContractors whose contract requires a bond backing completion of the work.
- Payment bondContractors who must back payment to their subcontractors and suppliers.
- Performance and payment bondsContractors whose contract requires both bonds together, common on public work.
- Bid bondContractors bidding on work where the owner requires a bond behind the bid.
- Maintenance bondContractors whose contract asks for a bond after the work is done.
- Subcontractor bondSubcontractors a general contractor requires to back their part of the work.
- Construction bondsContractors who need an overview of the bonds tied to a specific project.
Bonds by trade
Requirements and bond amounts often turn on your trade, so start with the guide for yours.
- General contractor bondGeneral contractors who need a state or city license bond or bonds for a specific project.
- Electrical contractor bondElectrical contractors whose state or city requires a license or permit bond.
- Plumbing contractor bondPlumbing contractors whose state or city requires a license or permit bond.
- HVAC contractor bondHVAC contractors whose state or city requires a license or permit bond.
- Roofing contractor bondRoofing contractors whose state or city requires a license or permit bond.
- Mechanical contractor bondMechanical contractors whose state or city requires a license or permit bond.
- Residential contractor bondResidential contractors whose state or city requires a license or permit bond.
- Commercial contractor bondCommercial contractors who need license, performance, or payment bonds for commercial and public projects.
Tools & guides
Estimate premiums and read up on how contractor bonds work before you apply.
- Contractor license bond calculatorContractors estimating a license bond premium for their state's required bond amount.
- Performance bond calculatorContractors estimating performance bond premium on a specific contract.
- Bid bond calculatorContractors working out a bid bond amount and any premium before submitting a proposal.
- Construction bond calculatorContractors estimating project bond premium on a construction contract.
- Bonding capacity guideContractors who want to understand how much bonding a surety may extend.
- Types of construction bondsContractors comparing bid, performance, payment, and maintenance bonds before they bid.
How much does a contractor bond cost?
A license bond premium is a percentage of the bond amount, paid each year, set by the surety carrier and driven mostly by credit. The table below shows estimate ranges using the credit tiers published on our contractor license bond cost page: Excellent (750+) 1-2%, Good (680-749) 2-4%, Fair (620-679) 4-8%, and below 620 8-15%. Project bond pricing works differently and runs off the contract value — see construction bonds — and either way these are estimates only; the surety carrier sets the actual price.
| Bond amount | Excellent (750+) 1-2% | Good (680-749) 2-4% | Fair (620-679) 4-8% | Below 620 8-15% |
|---|---|---|---|---|
| $5,000 | $50-$100 | $100-$200 | $200-$400 | $400-$750 |
| $10,000 | $100-$200 | $200-$400 | $400-$800 | $800-$1,500 |
| $15,000 | $150-$300 | $300-$600 | $600-$1,200 | $1,200-$2,250 |
| $25,000 | $250-$500 | $500-$1,000 | $1,000-$2,000 | $2,000-$3,750 |
| $50,000 | $500-$1,000 | $1,000-$2,000 | $2,000-$4,000 | $4,000-$7,500 |
| $100,000 | $1,000-$2,000 | $2,000-$4,000 | $4,000-$8,000 | $8,000-$15,000 |
Estimates only — the surety carrier sets the actual premium.
Run your own numbers with the contractor license bond calculator or the construction bond calculator.
Renewing your contractor bond
Renewal is a fresh underwrite, not a flat rebill, so your rate can move. Most contractor license bonds are continuous — pay the renewal premium and the bond stays in force — but a lapse can get your license suspended, so start 30–45 days before your renewal date. California contractors can read our CSLB bond renewal guide; for how renewal works on any contractor bond, see surety bond renewal.
Bonding with challenged credit
Credit is the main factor a surety uses to price a contractor license bond, but weaker credit usually means a higher rate, not an automatic decline. At the below-620 tier, a license bond premium is estimated at 8-15% of the bond amount; the carrier still decides approval and price, and may ask for collateral or a co-signer. See surety bonds for bad credit for what underwriters look at and what can improve your file.
What a claim on a contractor bond means
A claim is a demand for payment filed against your bond when someone says you failed to meet an obligation. If the surety carrier pays a valid claim, you must repay it in full, plus its investigation costs and legal fees, under the indemnity agreement you signed. Most bonds never see a claim, but a paid claim can raise your premium at renewal — see surety bond claims and, for project work, performance bond claims.
How BuySuretyBonds.com helps
Call us to talk through what your license or contract requires — whether you need a license bond, a project bond, or both. We're a licensed insurance agency, so you fill out one application and we shop multiple surety carriers against your situation. We bring back a quote; the surety carrier underwrites the bond and decides approval and pricing. See our agency licenses.
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After you apply
We review your requestWe go over the bond type, amount, and state you need, along with the details on your application.
We shop surety carriersWe take your file to multiple surety carriers that write your type of bond.
We bring back a quoteThe surety carrier sets the price and decides approval, and we send you the quote to review.
You accept and get bondedOnce you accept, sign, and pay the premium, the carrier issues the bond, and it is filed with your obligee or licensing agency as required.
How to get a contractor bond
Pin down which bond you need — a license or permit bond to get or renew your license, or a project bond for a specific contract. Check your state board, or the contract's bonding requirement, for the exact amount.
Gather your details — business name, license number or classification, the required bond amount, and basic financial information. Larger project bonds call for more, such as financial statements and a record of past work.
Request a quote. We shop multiple surety carriers against your situation and bring back a quote.
Review and accept the quote, then pay the premium. The surety issues the bond.
File the bond with your licensing board or city — whichever agency issues your license; for a project bond, file it with the obligee named in the contract.
Contractor bond FAQ
What is a contractor bond?
A contractor bond is a surety bond that protects your customers, your workers and, in some states, suppliers and the state if you violate license law or don't perform or pay on a job. It comes in two main forms: license and permit bonds that let you hold a contractor license, and project bonds (bid, performance, and payment) that back a specific construction contract.
How does a contractor bond work — who does it protect and who can claim?
In California, a license bond is a promise from a surety company to the state that it will pay damages if you violate contractors' state license law, up to the bond amount. In California the bond is filed for the benefit of consumers who may be damaged by defective construction or other license law violations, and for employees who have not been paid wages due to them. CSLB lists who can claim, including any homeowner who contracts for home improvements and is damaged because of a violation of contractors' state license law by the licensee, and any employee of the licensee damaged by their failure to pay wages. In Washington, state law reserves half of the bond for consumers, while construction workers, material suppliers, and taxing agencies may collect from the other half.
How much does a contractor bond cost?
For a license or permit bond, premium is a percentage of the bond amount a year, set mostly by credit — as an estimate, about 1-2% with excellent credit (750+) up to 8-15% below 620; the surety sets the final price. Project bonds run about 0.5% to 3% of the contract value as an estimate.
Is a contractor license bond the same as a performance bond?
No. A license bond is a condition of holding your license and protects consumers and employees, while a performance bond backs your completion of a specific contract. Depending on your work, you may need one, the other, or both.
What is a bonded contractor?
A bonded contractor is one who has bought bond coverage from a bonding company. Washington's labor department puts it plainly — contractor bonds are like insurance for the customer — so being "bonded" means there's a bond in place that claimants can draw on if you fall short.
What is a $10,000 contractor bond?
It is a contractor license bond with a $10,000 bond amount: the most the surety will pay on valid claims, not the price you pay. Arkansas requires a $10,000 bond for a commercial contractor license, New Mexico requires $10,000 at licensure and each renewal, New Jersey requires financial security of at least $10,000, $25,000 or $50,000 by contract value or volume, Tennessee requires $10,000 of financial responsibility (a surety bond qualifies) for home improvement licenses in nine counties, and the city of Indianapolis requires $10,000 for general and electrical contractors. As an estimate, the yearly premium on a $10,000 bond runs about $100-$200 with excellent credit (750+), $200-$400 with good credit, $400-$800 with fair credit and $800-$1,500 below 620; the surety carrier sets the actual price.
Do I need a bond in my state?
In California, Washington, Arizona and Nevada, yes — a bond must be in place before the state will issue or renew your contractor license or registration. California requires a $25,000 contractor license bond, Washington requires $30,000 for general contractors and $15,000 for specialty contractors (electrical and plumbing contractors are licensed under different laws), Arizona fixes the amount by estimated annual volume of construction work and the license classification, and Nevada sets a bond of $1,000 to $500,000 at license approval. For federal construction over $150,000 you'll also need performance and payment bonds under the FAR. For every other state, see the state table.
Sources
- CSLB — Contractor's Bond requirements
- CSLB — A Guide to Contractor License Bonds
- Washington L&I — Register as a contractor
- Washington L&I — Contractor bond increase (Article 24-13)
- Arizona Revised Statutes 32-1152
- Nevada State Contractors Board — Bonds
- FAR 28.102-1 — Performance and payment bonds, construction
- FAR 28.102-2 — Amount of required bonds
- FAR 28.101-2: bid bond amount
All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.