Delaware Contractor License Bond— Non-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 Division of Revenue also accepts cash bonds and bank letters of credit as alternatives to surety 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, the annual premium would be $150-$300 (2.5-5%). A $500,000 contract requires a $30,000 bond with premiums of $750-$1,500. See our surety bond cost guide for detailed pricing.

Non-resident contractors must file the 6% bond with the Delaware Division of Revenue BEFORE construction begins. This is a strict requirement under Delaware Code Title 30, Chapter 3, Section 375. 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. Both residents and non-residents working in Wilmington need the municipal bond.

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 filed with the Division of Revenue. Only the State of Delaware and its agencies can file a claim against it. This is similar to Iowa's contractor bond, which also functions as a tax guarantee rather than consumer protection.

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. The Division of Revenue actively enforces these requirements.

We issue Delaware non-resident contractor bonds the same business day for most applicants. The bond is delivered electronically in the Division of Revenue-accepted format, ready to file immediately. For larger contracts ($500,000+), underwriting may require additional business financial documentation, which can extend approval to 2-3 business days. We guarantee your bond will be filed before construction begins -- our File-Before-Work Guarantee means we expedite every Delaware bond with the statutory deadline in mind.

Yes. Delaware Code Title 30, Section 375 applies to both contractors and subcontractors. If you are a non-resident subcontractor and your subcontract price is $20,000 or more, you must file your own 6% bond with the Division of Revenue before beginning work. The general contractor's bond does not cover subcontractors. Additionally, if your aggregate Delaware subcontracts in a calendar year reach $20,000, the bond requirement kicks in even if individual subcontracts are below the threshold.