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Last Updated:|Reflects current Vermont contractor bond requirements
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Vermont Contractor Bond— No State Bond, Strict Local Rules

Vermont is one of the few states with no statewide contractor license bond -- the state relies on insurance requirements and registration through the Office of Professional Regulation instead. But do not let that fool you: Burlington requires a surety bond equal to 100% of project cost for work over $6,000, and the VT Agency of Transportation mandates 100% contract bonds for right-of-way projects under 19 V.S.A. Section 10. Whether you need a municipal bond or a public project bond, we can help. Vermont businesses that also need a Vermont auto dealer bond can apply for both simultaneously. Contractors crossing into New Hampshire should review the New Hampshire contractor bond rules.

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Official Vermont Requirements

"No person, partnership, or corporation shall commence work under a contract with the agency until such person has filed with the secretary of transportation a bond... in the full amount of the contract."
Vermont Agency of Transportation (19 V.S.A. Section 10) • 19 V.S.A. Section 10

Vermont: No Statewide Contractor Bond, But Do Not Skip Due Diligence

Unlike states such as California or Florida, Vermont does not mandate a statewide contractor license bond. Instead, the state requires residential contractors to register with the Office of Professional Regulation and carry general liability insurance ($1M/$2M). However, municipal governments and state agencies impose their own bonding requirements that can be substantial -- Burlington's 100% project cost bond is among the strictest in New England.

State Level
No Bond
Insurance + registration only
Burlington Municipal
100% Project Cost
Projects over $6,000
VTrans ROW
100% Contract
19 V.S.A. Section 10

Registration, Insurance, and Bond Obligations for VT Contractors

State registration, local bonds, and public project requirements for 2026

Bond and Registration Checklist
Complete Vermont contractor compliance overview
No statewide contractor license bond required for general contractors
Residential Contractor Registration through VT Office of Professional Regulation (OPR)
General liability insurance: $1,000,000 per occurrence / $2,000,000 aggregate
Registration required for residential projects of $10,000 or more
Registration fee: $75 (individual) or $250 (business entity)
Burlington: 100% project cost bond for construction over $6,000
VT Agency of Transportation: 100% contract bond for ROW projects under 19 V.S.A. Section 10
Public construction projects: performance and payment bonds at 100% of contract value
Registration Cost Breakdown
VT residential contractor registration fees
Individual Registration$75
Business Entity Registration$250
Project Threshold$10,000 (projects at or above)
GL Insurance Required$1M/$2M general liability
Surety BondNot Required

Four Scenarios That Trigger a Vermont Bond Requirement

Bond requirements vary by project type and jurisdiction

What Burlington and VTrans Bonds Actually Cost

Example: $100,000 Burlington project bond

Burlington: 100% Project Cost Bond

Vermont's largest city has unusually strict contractor bonding rules

Small Projects
Under $6,000
No bond required

Projects below $6,000 in Burlington are exempt from the bonding requirement. Standard city permits and licensing still apply.

Mid-Range Projects
$6K-$100K
100% project cost bond

A $50,000 remodel in Burlington requires a $50,000 surety bond. Premium typically runs $500-$2,500 depending on credit score and contractor qualifications.

Large Projects
$100K+
100% project cost bond

Major Burlington construction projects require full bonding. A $500,000 project needs a $500,000 bond -- underwriting may require reviewed financial statements.

Need a Vermont Contractor Bond?

Whether it is a Burlington project bond, VTrans transportation bond, or public works performance bond -- get your quote in minutes.

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VTrans and Public Construction Bonds

19 V.S.A. Section 10 and Vermont's Little Miller Act

1

Determine If Your Project Qualifies

VTrans right-of-way projects and publicly funded construction in Vermont require bonding under 19 V.S.A. Section 10. The Secretary of Transportation may waive bonds for contracts of $100,000 or less at their discretion.

2

Obtain Required Bond Types

VTrans typically requires two bonds: a labor and materials bond (protecting subcontractors and suppliers) and a compliance bond (ensuring adherence to contract terms). Both must equal 100% of the contract value.

3

Submit Bond with Bid or Contract

File your bond with the Secretary of Transportation before commencing work. The bond must be issued by a surety authorized to do business in Vermont and listed on the U.S. Treasury's Circular 570.

4

Maintain Bond Through Project Completion

The bond must remain active for the full duration of the project plus any warranty period. Bond cancellation before project completion can result in contract termination and claim against the surety.

Legislative Update: H.944 (2026) is an active bill in the Vermont Legislature that may modify transportation bonding requirements. Monitor legislature.vermont.gov for updates on this legislation.

Frequently Asked Questions About Vermont Contractor Bonds

Common Vermont contractor bond questions

Does Vermont require a statewide contractor license bond?
No. Vermont does not require a statewide contractor license bond. The state uses a registration system through the Office of Professional Regulation (OPR) under the Secretary of State, which requires general liability insurance ($1M per occurrence / $2M aggregate) rather than a surety bond. However, specific municipalities like Burlington and certain state agency contracts do require surety bonds. Contractors working on public projects or within Burlington city limits should verify local bonding requirements before bidding.
What is the Burlington contractor bond requirement?
Burlington, Vermont requires contractors to post a surety bond equal to 100% of the project cost for construction projects exceeding $6,000. This is one of the strictest local bonding requirements in New England. The bond guarantees project completion and protects the city and property owners from contractor default. Burlington contractors must obtain a new bond for each qualifying project. For a $50,000 Burlington project, for example, your bond premium would typically range from $500 to $2,500 depending on credit and experience.
What bonds does the VT Agency of Transportation require?
The Vermont Agency of Transportation (VTrans) requires contractors working on right-of-way (ROW) projects to post bonds equal to 100% of the contract value under 19 V.S.A. Section 10. This includes both a labor and materials bond and a compliance bond. The Secretary of Transportation may waive the bonding requirement at their discretion for contracts of $100,000 or less. Active legislative bill H.944 (2026) may further modify these transportation bonding thresholds.
How much does a Vermont contractor bond cost?
Vermont contractor bond costs vary by the bond amount required. Since most Vermont bonds are project-based (100% of contract value), pricing depends on the specific project. For example, a $100,000 project bond typically costs $1,000 to $5,000 annually (1-5% of bond amount) depending on your credit score, financial history, and contracting experience. Excellent credit (750+) qualifies for rates as low as 1%. For more details on bond pricing, see our surety bond cost guide at /surety-bond-cost/.
Do I need to register as a residential contractor in Vermont?
Yes. Vermont requires residential contractors to register with the Office of Professional Regulation (OPR) for projects of $10,000 or more. Registration costs $75 for individuals or $250 for business entities. You must carry general liability insurance of at least $1,000,000 per occurrence and $2,000,000 aggregate. Note that this registration does not require a surety bond -- only insurance. Failure to register can result in fines and inability to enforce contracts or file mechanic's liens.
What is the Vermont Little Miller Act?
Vermont's Little Miller Act, codified primarily in 19 V.S.A. Section 10, requires performance and payment bonds on public construction projects equal to 100% of the contract value. These bonds protect the state, municipalities, and subcontractors/suppliers on publicly funded projects. The bonds ensure project completion (performance bond) and payment to all laborers, subcontractors, and material suppliers (payment bond). This mirrors the federal Miller Act but applies to state-level public works.
How is a surety bond different from liability insurance for Vermont contractors?
A surety bond protects the public and project owners -- if a claim is paid, you must reimburse the surety company. Insurance protects you from your own losses. Vermont requires $1M/$2M general liability for registration but no statewide bond. Burlington project bonds and VTrans bonds are separate surety obligations. For details, see our guide at /bond-vs-insurance/.
What steps should I take to get bonded as a Vermont contractor?
Start by determining which bonds you need based on project locations. Burlington projects over $6,000 require 100% project cost bonds. VTrans ROW projects need 100% contract bonds. Apply through our online system with project details and credit information -- most bonds approved within 24 hours. For the full process, visit /how-to-get-a-surety-bond/.

Official Vermont Resources

VT Office of Professional Regulation

Authority: Residential contractor registration

Website: https://sos.vermont.gov/opr/contractors/

Handles registration, insurance verification, and complaint resolution for residential contractors.

Legal Authority

Transportation Bonds: 19 V.S.A. Section 10

Pending Legislation: H.944 (2026 session)

VTrans: https://vtrans.vermont.gov/

View Statute

Explore More Vermont Bond Resources

Neighboring States

New Hampshire contractor bondMassachusetts contractor bondNew York contractor bondMaine contractor bond

Other Vermont Bonds

Vermont auto dealer bondAll contractor bonds by stateContractor bond cost guide

Tools & Guides

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

Quick Links

Vermont surety bond solutionsPerformance bondsPayment bondsBid bondsP&P bondsComplete bond directoryContractor industry center

Need a broader overview of contractor licensing and bonding nationwide? Visit our contractor industry resource center. For a full understanding of how surety bonds work and what they cost, read our surety bond cost guide.

Other vermont Bonds

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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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