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North Dakota Contractor Bonds— City & Specialty Requirements

North Dakota has no statewide general contractor bond, but that does not mean you can skip bonding. Water well contractors must post a $15,000 bond under NDCC Ch. 61-28.1, Grand Forks requires $5,000 for most trades, and Fargo demands an unusually high $25,000 for sidewalk builders. Whether you need a city bond or a specialty trade bond, we cover every North Dakota requirement. For broader surety information, visit our surety bond cost guide.

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ND Bond Requirements

Official North Dakota Requirements

"Each water well contractor licensed under this chapter shall furnish a surety bond in the sum of fifteen thousand dollars conditioned upon the faithful performance of all water well construction, pump installation, and monitoring well construction."
North Dakota State Water Commission, NDCC Ch. 61-28.1 • North Dakota Century Code Chapter 61-28.1

No Statewide General Contractor Bond

Unlike states such as California or Arizona, North Dakota does not require a statewide surety bond for general contractors. The Secretary of State licenses contractors for projects over $4,000 under NDCC Chapter 43-07, but this licensing process does not include a bond. Instead, bonding requirements come from two sources:

State-Level Specialty Bonds
Water Well: $15,000
NDCC Ch. 61-28.1 (mandatory)
City-Level Trade Bonds
$1,000 - $25,000
Varies by city and trade

State License, City Bond, or Both? What ND Contractors Need

No statewide bond, but water well contractors and several cities have real requirements

State-Level Requirements
Statewide licensing and bonding rules
No statewide general contractor bond requirement
Secretary of State licenses contractors for jobs over $4,000 under NDCC Ch. 43-07
Water well contractors: $15,000 mandatory bond under NDCC Ch. 61-28.1
Individual cities impose their own bonding requirements
Public project contractors may need performance and payment bonds
Workers compensation insurance required for all employees
Verify your specific city ordinance for local bonding amounts
Cost Breakdown by Bond Type
Annual premium estimates by bond requirement
Water Well Bond ($15K)$150-$750 annually
Grand Forks Bond ($5K)$50-$250 annually
Fargo Sidewalk Bond ($25K)$250-$1,250 annually
Water Well License App$100 (initial application)
Lowest Annual PremiumFrom $50/yr

Grand Forks $5K vs. Fargo $25K: Why One City Charges Five Times More

Climate, infrastructure risk, and municipal code all play a role

$15,000 Water Well Bond: The 650% Increase That Changed ND Drilling

Raised from $2,000 in 2015 to protect groundwater and landowners

Why This Bond Matters

North Dakota's groundwater is a critical resource for agriculture, municipalities, and rural households across the state. The $15,000 water well contractor bond under NDCC Chapter 61-28.1 protects landowners and the environment from improper drilling practices, abandoned wells, and groundwater contamination.

The bond amount was significantly increased from $2,000 to $15,000 effective August 1, 2015 -- a 650% increase -- reflecting the state's recognition that modern well drilling costs and potential environmental damage far exceeded the previous bond limit. North Dakota contractors who also need a North Dakota auto dealer bond or a North Dakota notary bond can get all three through our system.

Bond Amount$15,000 (since Aug 1, 2015)
Previous Amount$2,000 (pre-2015)
Governing BodyState Board of Water Well Contractors
StatuteNDCC Chapter 61-28.1
CoversWell drilling, pump installation, monitoring wells
Annual Premium$150-$750 (credit-dependent)

Need a North Dakota Contractor Bond?

Whether you need a water well bond, Grand Forks city bond, or Fargo sidewalk builder bond, get a free quote in minutes.

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Same-day approval available • Competitive rates

Pay only after your bond is issued • No obligation • 2 minutes

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Five Steps: From Bond Application to Filed and Active

Identify your requirement, apply, and file -- most bonds approved within 24 hours

1

Determine Your Bond Requirement

Identify which bond you need: water well contractor ($15,000 state bond), city-specific trade bond (Grand Forks $5,000, Fargo $25,000 for sidewalk builders), or public project performance bond. Check with your local city clerk or the ND Secretary of State.

2

Gather Your Information

Prepare your business details, personal credit information, and any relevant licenses. Water well contractors need their State Board of Water Well Contractors application. City bond applicants need their municipal license application.

3

Get Your Bond Quote

Submit your information for an instant quote. Most North Dakota contractor bonds are approved within 24 hours. Credit scores above 650 typically qualify for standard rates of 1-5% of the bond amount.

4

Purchase and File Your Bond

Pay your premium and receive your bond document. File the original bond with the appropriate authority: State Board of Water Well Contractors for water well bonds, or the city clerk for municipal contractor bonds.

5

Maintain Your Bond

Keep your bond active for the duration of your license. Bonds renew annually. A lapsed bond will result in license suspension. We send reminders before your renewal date to prevent any gaps in coverage.

Fargo Sidewalk Builders: $25,000 Bond

Fargo's $25,000 sidewalk builder bond is one of the highest municipal contractor bonds in North Dakota -- five times the Grand Forks general contractor bond of $5,000. This reflects Fargo's severe winter conditions, where freeze-thaw cycles can destroy improperly poured concrete within a single season. The bond ensures that contractors who perform substandard work or abandon projects can be held financially accountable for repairs and completion.

Fargo Sidewalk Bond
$25,000
Fargo Municipal Code
Grand Forks Trade Bond
$5,000
Grand Forks City Code
Difference
5x Higher
Fargo vs Grand Forks

North Dakota Contractor Bond FAQs

Common North Dakota contractor bond questions

Does North Dakota require a statewide contractor bond?
No. North Dakota does not impose a statewide general contractor bond. The Secretary of State licenses contractors for projects exceeding $4,000 under NDCC Chapter 43-07, but this licensing does not include a surety bond requirement. However, individual cities such as Grand Forks, Fargo, and Bismarck do require bonds, and specialty trades like water well contracting carry a mandatory $15,000 state bond under NDCC Chapter 61-28.1.
What is the North Dakota water well contractor bond?
Under NDCC Chapter 61-28.1, water well contractors in North Dakota must post a $15,000 surety bond with the State Board of Water Well Contractors (within the State Water Commission). This amount was increased from $2,000 to $15,000 effective August 1, 2015. The bond protects landowners and the state from improper drilling, well abandonment, or contamination of groundwater resources. All water well drillers, pump installers, and monitoring well contractors must maintain this bond to remain licensed.
Why does Fargo require a $25,000 sidewalk builder bond?
Fargo requires an unusually high $25,000 bond for sidewalk builders due to the city's unique infrastructure challenges. North Dakota's severe freeze-thaw cycles put extreme stress on concrete work, and Fargo's flat terrain and clay-heavy soils amplify settlement and drainage issues. The higher bond amount ensures adequate financial protection for the city and property owners if a sidewalk contractor abandons a project or delivers substandard work that deteriorates prematurely.
How much does a North Dakota contractor bond cost?
North Dakota contractor bond costs vary by bond amount and credit score. A Grand Forks $5,000 bond typically costs $50-$250 annually (1-5% of bond amount). A water well contractor $15,000 bond costs $150-$750 annually. The Fargo $25,000 sidewalk builder bond costs $250-$1,250 annually. Excellent credit (750+) qualifies for rates as low as 1%, while applicants with credit challenges may pay 5-10%. For a detailed breakdown of bond pricing, see our surety bond cost guide at /surety-bond-cost/.
What bonds does Grand Forks require for contractors?
Grand Forks requires a $5,000 surety bond for building contractors, mechanical contractors, plumbing contractors, excavator contractors, and sign hanger contractors. Moving contractors in Grand Forks need a lower $1,000 bond. These bonds are filed with the City of Grand Forks and must be maintained continuously for the license to remain active. The bond protects Grand Forks residents from financial loss due to contractor fraud, abandonment, or code violations.
Do Bismarck contractors need a surety bond?
Bismarck requires performance and payment bonds on public construction contracts, typically equal to 100% of the contract value. This follows NDCC Chapter 48-01.2, which mandates surety bonds on public improvement contracts. For private work in Bismarck, bonding requirements depend on the specific trade and city ordinance. Contractors working on Bismarck public projects should expect to provide both a performance bond (guaranteeing completion) and a payment bond (guaranteeing payment to subcontractors and suppliers).
Can I get a North Dakota contractor bond with poor credit?
Yes. We offer bad credit bond programs for all North Dakota contractor bonds. For the $5,000 Grand Forks bond, applicants with poor credit typically pay $250-$500 annually (5-10%). For the $15,000 water well bond, expect $750-$1,500 per year. No collateral is required, and most applications are approved the same day. As your credit score improves at renewal, your premium drops.
How does a North Dakota contractor bond differ from liability insurance?
A contractor bond is a financial guarantee that protects the obligee (the city or state board) and the public. If a valid claim is filed, the surety pays the claimant but you must reimburse the surety in full. Insurance protects you -- the insurer absorbs the covered loss. North Dakota cities and the water well board require bonds; employers also need workers compensation insurance separately. See our bond vs. insurance guide for a detailed comparison of how each works.

Official North Dakota Resources

State Contacts

ND Secretary of State: (701) 328-4284

SOS Website: https://sos.nd.gov/

Water Commission: https://www.swc.nd.gov/

Legal Authority

Contractor Licensing: NDCC Chapter 43-07

Water Well Bond: NDCC Chapter 61-28.1

Public Contracts: NDCC Chapter 48-01.2

View Water Well Statute

Explore More North Dakota Bond Resources

Neighboring States

Minnesota contractor bondSouth Dakota contractor bondMontana contractor bondWyoming contractor bondIowa contractor bond

Other North Dakota Bonds

North Dakota auto dealer bondNorth Dakota notary bondAll contractor bonds by stateContractor bond cost guidePerformance bonds

Tools & Guides

Contractor bond calculatorSurety bond cost guide50-state requirements guideGeneral contractor bond guideGet your free quoteHow to get a surety bondBond vs. insurance explained

Need a broader overview of contractor licensing and bonding nationwide? Visit our contractor industry resource center. For neighboring states, see South Dakota, Montana, or Minnesota contractor bonds. BuySuretyBonds.com offers every surety bond type with same-day approval across all 50 states.

Other North Dakota Bonds

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Nearby States

Contractor license bonds in neighboring states

Montana
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.

Water Well, Grand Forks, or Fargo -- One Application Covers All

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