Delaware Contractor License BondNon-Resident: 6% of Contract Value

It depends on residency. Non-resident contractors must post a bond equal to 6% of the contract or subcontract price for any single contract of $20,000 or more, or when aggregate contracts in one calendar year total $20,000 or more. Delaware resident contractors have no state-level bond requirement, though Wilmington and other municipalities may require bonds.

The bond amount is 6% of your contract value. Your annual premium is typically 1-5% of that bond amount. For example, a $100,000 contract requires a $6,000 bond (6%). With good credit, annual premium would be $150-$300 (2.5-5%). Larger contracts or challenged credit may require higher rates.

Non-resident contractors must file the 6% bond with the Delaware Division of Revenue BEFORE construction begins. Failing to file before starting work is a misdemeanor with fines up to $3,000 and/or imprisonment up to 6 months. The bond must remain in force continuously -- any lapse can result in license revocation.

The City of Wilmington requires bonds from $10,000 to $200,000 depending on license class. Class A, B, C, and U contractors plus master HVACR technicians and plumbers all need bonds. These municipal bonds are separate from and in addition to the state non-resident bond requirement.

The Delaware non-resident contractor bond guarantees payment of taxes, penalties, and other amounts due to the State of Delaware. It is essentially a tax-guarantee bond. The bond is filed with the Division of Revenue and can be claimed against only by the State of Delaware and its agencies.

Delaware treats non-compliant contracting as a misdemeanor. Non-residents who fail to file the required 6% bond face fines up to $3,000 and/or imprisonment up to 6 months. Additionally, unlicensed contractors may have difficulty collecting payment and face civil liability for work performed without proper registration.