Wisconsin Contractor License Bond: Dwelling Contractor Certification
In Wisconsin, you need a DSPS certificate of financial responsibility before you can obtain a building permit for a one- or two-family dwelling. The statute accepts a surety bond of not less than $5,000, with a work-size limit if the bond is under $25,000, or general liability insurance of at least $250,000 per occurrence, while the DSPS page states a bond of at least $25,000, so confirm with DSPS.
- Who requires it: The Wisconsin Department of Safety and Professional Services (DSPS); Wis. Stat. 101.654 (Wis. Admin. Code SPS 305.31).
- Amount: The statute sets a bond floor of not less than $5,000, a bond under $25,000 gives a restricted certification limited to dwellings whose estimated cost of completion is not greater than the bond, $25,000 or more removes that work-size restriction, and a general liability policy of at least $250,000 per occurrence is the alternative, while the DSPS page instead states a bond of at least $25,000, so confirm with DSPS.
Official Wisconsin Requirements
"A certificate of financial responsibility issued under this subsection is valid for one year after the date of issuance, unless sooner suspended or revoked."Wis. Stat. 101.654 • View Official Requirements →
Who needs the Dwelling Contractor certification
In Wisconsin, no person may obtain a building permit for a one- or two-family dwelling without an annual certificate of financial responsibility from DSPS. An owner who resides or will reside in the dwelling and applies for a building permit to perform work on that dwelling is exempt. On the DSPS Dwelling Contractor page the credential is held by a business, and a first-time applicant is the owner, partner or chief executive of that business. The certificate holder must also hold or employ a person certified as a dwelling contractor qualifier. DSPS (the Department of Safety and Professional Services) has the final word on what your credential requires, so confirm your exact requirements with DSPS before you apply.
How much the bond is, and the restricted route
The statute sets the bond floor at not less than $5,000. If your bond is under $25,000, you take the restricted route: you agree not to work on any dwelling whose estimated cost of completion is greater than the amount of the bond, and that restriction is printed on your certificate. That route is issued as a dwelling contractor — restricted certification. At $25,000 or more, that work-size restriction does not apply. The DSPS Dwelling Contractor page instead states a bond of at least $25,000, and that page does not describe the $5,000–$24,999 restricted route; the statute and the page differ, so confirm the amount that fits your work with DSPS.
| Route | Amount | What it means |
|---|---|---|
| Surety bond — restricted | At least $5,000 and under $25,000 | Dwelling contractor — restricted certification; you agree not to work on a dwelling whose estimated cost of completion is greater than the bond |
| Surety bond — unrestricted | $25,000 or more | No work-size restriction |
| General liability insurance | At least $250,000 per occurrence | Statutory alternative to the bond |
| DSPS page figure | At least $25,000 (bond) | The DSPS page states this; it differs from the statute's $5,000 floor, so confirm with DSPS |
Bond or insurance, and how it stays in force
The bond option is a bond endorsed by a surety company authorized to do business in Wisconsin of not less than $5,000, conditioned on your complying with the one- and two-family dwelling code and any applicable ordinance. The alternative is a general liability policy insuring you for at least $250,000 per occurrence for bodily injury, death, or damage to the property of others. A certificate of financial responsibility is valid for one year after issuance, unless sooner suspended or revoked. At each renewal you upload your up-to-date proof of financial responsibility. The bond or policy cannot be canceled except on 30 days' prior written notice served on DSPS in person or by first-class mail, or on 10 days' notice if the cancellation is for nonpayment of premiums to the insurer. You must file proof of a replacement bond or replacement insurance within that notice period and before the bond or policy expires, and DSPS suspends the certificate without prior notice or hearing if you do not.
Who can make a claim
The bond is executed in the name of the state for the benefit of any person who sustains a loss because the person insured under the bond did not comply with an applicable provision of the one- and two-family dwelling code or a local dwelling ordinance. The aggregate liability of the surety to all persons may not exceed the amount of the bond.
Other requirements for the certificate
Along with proof of financial responsibility, the certificate calls for completing at least 12 hours in an educational course accepted by DSPS covering accounting, lien law, ethics, and best business practices. You also certify that you comply with the workers' compensation and unemployment compensation requirements. The statute further requires completing at least 12 hours of continuing education every two years; the DSPS page states there are no continuing education requirements for this credential, so the sources differ and you should confirm with DSPS. On an exam, the statute mentions one only for a person who did not hold a certificate on April 11, 2006, while the DSPS page and SPS 305.31 do not list an exam for this certificate; the sources differ, so confirm with DSPS. A statute annotation notes that an ordinance requiring local licensure is preempted if it imposes greater financial responsibility, education, or examination requirements on one- and two-family dwelling permit seekers than state law.
Steps
- Pick your certificate. Decide whether you will hold the standard Dwelling Contractor certification or the restricted one, which is issued when you apply using a bond of less than $25,000.
- Choose bond or insurance. Show financial responsibility with a surety bond of not less than $5,000 (a bond under $25,000 limits the size of work you can take) or general liability insurance of at least $250,000 per occurrence.
- Get the bond from a surety. A surety company authorized to do business in Wisconsin issues the bond, conditioned on your complying with the dwelling code and applicable ordinances. What you pay is a small share of the bond amount, set by the surety from your credit and business details.
- Meet the other requirements. Complete the 12-hour course, certify that you comply with workers' compensation and unemployment compensation requirements, and hold or employ a certified dwelling contractor qualifier.
- File your proof with DSPS. Submit your proof of financial responsibility so DSPS can issue the annual certificate.
- Keep it in force. The certificate lasts one year; upload current proof at renewal, and file replacement coverage within the cancellation notice period so DSPS does not suspend your certificate.
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Frequently asked questions
Does Wisconsin require a contractor bond?
Not by itself. To obtain a building permit for a one- or two-family dwelling you need a DSPS certificate of financial responsibility, which you can show with either a surety bond of not less than $5,000 (a bond under $25,000 limits the size of work you can take) or general liability insurance of at least $250,000 per occurrence.
What is the Wisconsin dwelling contractor bond amount?
The statute sets a floor of not less than $5,000, and a bond under $25,000 makes your certificate restricted. The DSPS page instead states a bond of at least $25,000, so the sources differ and you should confirm the amount with DSPS.
Who needs the Wisconsin dwelling contractor certification?
In general, a person who obtains a building permit for a one- or two-family dwelling. An owner who lives or will live in the dwelling and pulls the permit for work on it is exempt.
What is the DSPS contractor bond for?
It is executed in the name of the state for the benefit of any person who sustains a loss because the certificate holder did not comply with the one- and two-family dwelling code. The surety's total liability to everyone cannot exceed the bond amount.
Can I use insurance instead of a bond?
Yes. A general liability policy of at least $250,000 per occurrence is the statutory alternative to the bond.
How long does the certificate last, and how do I keep it?
A certificate is valid for one year unless sooner suspended or revoked. At each renewal you upload current proof of financial responsibility.
Does the certificate need continuing education or an exam?
The statute lists a 12-hour course covering accounting, lien law, ethics, and best business practices. On continuing education and on an exam, the statute and the DSPS page differ, so confirm both with DSPS.
Related guides: Wisconsin auto dealer bonds, bid bonds, bond vs. insurance, contractor bond cost guide, Illinois contractor license bonds, get a quote, how to get a surety bond, contractor license bond requirements by state, general contractor bond requirements, notary bonds, payment bonds, performance and payment bonds, performance bonds, surety bond cost, contractor bond calculator.
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