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Last Updated:|Reflects current Maine contractor license bond requirements
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Maine Contractor License Bond— Municipal & Public Works Requirements

Maine is one of the few states with no statewide general contractor bond -- making it an outlier among surety bond requirements nationwide. Electricians and plumbers are licensed but don't need surety bonds. Bonding in Maine comes from municipal requirements (Portland's $25,000 excavation bond), public works bonds under Title 14 §871 for government contracts over $125,000, and a $10,000 manufactured housing installer bond. See our contractor bonds hub or surety bond cost guide.

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Official Maine Requirements

"Every person who enters into a formal contract with the State... for the construction, alteration or repair of any public building or public work... shall furnish a performance bond and a payment bond, each of which shall be in an amount equal to the contract price."
Maine Legislature — Public Works Contractors' Surety Bond LawMaine Revised Statutes, Title 14, §871

Municipality Match Guarantee: We verify your exact city's bond requirement and issue the correct bond form -- Portland, South Portland, or any Maine municipality.

Maine Has No Statewide General Contractor Bond

Unlike California ($25,000 CSLB bond) or Alaska ($5K–$25K), Maine does not require a surety bond for general contractors, electricians, or plumbers at the state level.

Where bonds ARE required: Municipal governments (Portland, South Portland), public works projects over ~$125,000, and manufactured housing installers ($10,000 under HUD).

All Five Maine Bond Categories in One Table

Municipal Bond Requirements

Portland — $25,000
Largest Maine Market

Who: Street excavation contractors

Filed with: City of Portland Permits & Inspections

Premium: $250–$2,500/yr depending on credit

South Portland — $10,000

Who: Excavation contractors

Filed with: City of South Portland Engineering

Premium: $100–$1,000/yr depending on credit

Maine Contractor Bond Costs

Other Maine Bond Costs
Manufactured Housing ($10,000)$100–$1,000/yr
S. Portland Excavation ($10,000)$100–$1,000/yr
Portland Excavation ($25,000)$250–$2,500/yr

Use our contractor bond calculator for estimates.

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Title 14 Section 871: When Performance and Payment Bonds Apply

Performance and payment bonds for government contracts over $125,000

Performance Bond

Under Title 14 Section 871, any contractor entering a formal contract with the State of Maine, a county, city, town, or public authority for public building or public work construction must furnish a performance bond equal to 100% of the contract price.

The performance bond guarantees that the contractor will complete the project according to the plans, specifications, and terms of the contract. If the contractor defaults, the surety must either complete the work or compensate the public entity for the cost of hiring a replacement contractor.

Payment Bond

The payment bond, also at 100% of the contract price, protects subcontractors, material suppliers, and laborers. Under Title 14 Section 871, any person who has furnished labor or materials for a public works project and has not been paid within 90 days after performing the work or supplying the materials may sue on the payment bond.

The threshold for requiring public works bonds is approximately $125,000 in contract value. Projects below this threshold may still require bonds at the discretion of the contracting public entity. MaineDOT projects typically require bonds regardless of the contract value.

How Maine Stacks Up Against New England Neighbors

How Maine compares to other New England states

Manufactured Housing Installer Bond

Maine's only state-level contractor surety bond

Requirements

Under the Maine Manufactured Housing Act (Title 10, Chapter 951) and federal HUD requirements, licensed manufactured housing installers must maintain a $10,000 surety bond.

The bond is administered by the Maine Manufactured Housing Board within the Office of Professional and Occupational Regulation (OPOR). This is the only contractor surety bond mandated at the state level in Maine.

Bond Details

Bond Amount$10,000
Annual Premium$100-$1,000
ObligeeMaine Manufactured Housing Board
StatuteTitle 10, Ch. 951 / HUD
RenewalAnnual

Portland, Coastal Communities, and Public Works Demand

Regional factors driving bond demand in the Pine Tree State

Portland / South Portland

Maine's largest metro area drives the majority of municipal bonding. Portland's $25,000 excavation bond is the most significant municipal contractor bond in the state. The waterfront redevelopment, mixed-use projects, and infrastructure upgrades create steady demand for bonded contractors working on or near public rights-of-way.

Coastal Communities

From Kennebunkport to Bar Harbor, coastal Maine sees significant seasonal construction tied to tourism and second-home markets. Many coastal municipalities have their own permitting requirements. Public works bonds are common for harbor, dock, and seawall projects funded by state or federal grants.

Northern Maine / Rural

Northern and rural Maine sees less construction volume but significant public works projects including road, bridge, and utility infrastructure. MaineDOT projects across the state require performance and payment bonds for qualifying contract values.

Insurance and Workers' Compensation in Maine

Separate from bond requirements but essential for legal compliance

Workers' Compensation

Maine requires workers' compensation insurance for all employers with one or more employees, including construction contractors. The program is administered by the Maine Workers' Compensation Board. Sole proprietors working alone may elect coverage but are not required to carry it.

General Liability

Maine does not mandate general liability insurance at the state level for contractors. However, municipalities that require contractor bonds typically also require proof of general liability insurance. Portland and South Portland both require contractors to carry adequate GL coverage as a condition of receiving excavation permits. The bond and GL insurance serve different purposes -- see our bond vs. insurance guide for details. Vehicle dealers operating in Maine must separately obtain a Maine auto dealer bond through the Bureau of Motor Vehicles. Contractors expanding south into Massachusetts face a mandatory state contractor bond through the OCABR registration program.

Five Steps to Your Maine Contractor Bond

Steps depend on whether you need a municipal, public works, or manufactured housing bond

1

Identify Your Bond Requirement

Determine which Maine bond you need. Municipal excavation bonds in Portland ($25,000) or South Portland ($10,000) require filing with the city. Public works bonds under Title 14 Section 871 are required for government contracts over $125,000. Manufactured housing installer bonds ($10,000) are filed through the Manufactured Housing Board.

2

Gather Documentation

Prepare your business information, personal credit authorization, and any municipal license application forms. For public works bonds, you will need your contract details, financial statements, and project specifications. Larger bonds may require reviewed or audited financials.

3

Apply for Your Bond

Submit your application through our online system. Most municipal bonds and manufactured housing installer bonds are approved same-day with minimal documentation. Public works performance and payment bonds require underwriting review based on your financial capacity and project scope.

4

File with the Appropriate Authority

Once approved, file your bond with the obligee: the City of Portland or South Portland for excavation bonds, the Maine Manufactured Housing Board for installer bonds, or the contracting public entity for public works bonds. We provide pre-formatted bonds accepted by all Maine authorities.

5

Maintain Compliance

Keep your bond active throughout the required period. Municipal bonds renew annually. Public works bonds remain in force for the duration of the project plus any warranty period. We send renewal reminders 60 days in advance to prevent any gap in coverage.

Maine Contractor Bond FAQs

Does Maine require a statewide general contractor bond?
No. Maine does not license or bond general contractors at the state level. There is no statewide contractor license, no general contractor bond requirement, and no trade exams for general construction work. Contractor bonding in Maine comes from three sources: (1) municipal requirements -- Portland requires a $25,000 excavation bond and South Portland requires $10,000 for street excavation contractors; (2) public works bonds under Title 14 Section 871 for government contracts exceeding approximately $125,000, which require both performance and payment bonds at 100% of the contract price; and (3) the $10,000 manufactured housing installer bond under HUD requirements and Title 10, Chapter 951, administered by the Maine Manufactured Housing Board. Electricians and plumbers are licensed through their respective examining boards but do not require surety bonds at the state level.
Do Maine electricians or plumbers need a surety bond?
No. Maine licenses electricians and plumbers through their respective examining boards, but neither trade requires a surety bond at the state level. They need professional licenses and applicable insurance only. Municipal bonds may apply separately depending on the city.
When is a Maine public works bond required?
Under Title 14 §871, performance and payment bonds each equal to 100% of the contract amount are required for public works contracts exceeding approximately $125,000 with the State, counties, cities, or public authorities.
What municipal contractor bonds exist in Maine?
Portland requires a $25,000 bond for street excavation contractors. South Portland requires $10,000 for excavation work. Other cities may have their own requirements — contact each municipality's permit office directly.
What is the manufactured housing installer bond?
Licensed manufactured housing installers must post a $10,000 surety bond under the Maine Manufactured Housing Act (Title 10, Chapter 951) and federal HUD requirements, administered by the Maine Manufactured Housing Board. This is the only state-level contractor surety bond in Maine.
How much does a Maine contractor bond cost?
Portland's $25,000 excavation bond costs $250–$2,500 per year depending on credit. The $10,000 manufactured housing installer bond costs $100–$1,000 annually. Public works bonds are priced based on contract value and contractor financials. Contractors with excellent credit (720+) qualify for rates as low as 1% of the bond amount.
How do I get a Maine contractor bond?
First, determine which Maine bond you need: municipal excavation (Portland $25,000, South Portland $10,000), manufactured housing installer ($10,000), or public works performance/payment bonds. Second, apply online with your business details and authorize a credit check -- most municipal and installer bonds are approved same-day. Third, we issue the bond and you file it with the appropriate authority: city permits office for municipal bonds, Manufactured Housing Board for installer bonds, or the contracting public entity for public works bonds.

Official Maine Resources

Key Statutes

Public Works: Title 14 §871

Manufactured Housing: Title 10, Ch. 951

View Title 14 §871

Other maine Bonds

Additional surety bonds available in maine

Nick Thoroughman
Reviewed by Nick Thoroughman, Founder
8+ years in surety bond technology. All content is researched from official state and federal sources (.gov) and reviewed for accuracy before publication. BuySuretyBonds.com works with Treasury-certified, A- minimum rated surety carriers serving all 50 states.

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