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What is a Contractor License Bond
A contractor license bond is a type of surety bond that is used as a contract to guarantee your clients are protected from the work you provide. It is necessary to have a contractor license bond in order to obtain a contractor license. This type of license bond is beneficial for both you and your clients and should always be obtained when any kind of construction project is being completed because it protects anyone involved in the project from any unethical or costly business decisions or practices. When you have a contractor license bond, you are agreeing to follow all state laws and regulations in accordance with that state. The bond is an agreement between 3 parties, the contractor, the hiring company, and the surety, and is meant to protect all 3 parties in one way or another. When you apply for a contractor license bond, you are agreeing to provide professional and ethical services. This contractor bond is also meant to protect the public, ensuring that the work you provide for the hiring company will not harm civilians in any way. The contractor license bond is essential for any contractor looking to provide ethical and quality work with an insurance and bond guarantee.
FAQs About Contractor License Bonds
How much will this bond cost?The cost of a contractor license bond depends on a few things. Your personal credit will play a huge role in determining the percentage of the bond in which you will pay, also known as the bond premium. The size of the project and projected costs associated with the project will also help determine how much the bond will be. Work history, bond history, work financials, and personal financials, are all looked into and considered when someone is applying for any type of contract bond. The surety needs to know that they are providing a bond to a contractor who has good work and financial history in order to be a minimal risk.
Why do I need this type of bond?Without a contractor license bond, contractor work is not secure. When you obtain this bond, you are promising to following a specific set of regulations and guaranteeing s certain caliber of work. If these standards are not met a claim can be made on the bond and the contractor's license could potentially be revoked. Some reasons a claim may be made on a bond include:
• Not paying taxes
• Failing to abide by each and every safety and labor law
• False advertisement
• Abandoning a contract after a bid is submitted or accepted
How do I obtain a contractor license bond?When working with the Surety place, we make the process as seamless as possible for you. We know how busy you are and we want you to know that we do the hard work for you. Simply fill out our fillable form and your process for requesting for a contract license bond will start. It does not matter how big or small your bond is, we are here to help you throughout the entire process. We want to be your surety bond partners for life.
Does a contract license bond guarantee a contract?No. The contractor license bond guarantees that the contractor will comply with all state and local regulations in regards to holding a contractor license. A contract bond -- bid, performance, and payment bonds, are needed in order to guarantee a contract. Usually the surety company that helped you obtain the contractor license bond, can also help you obtain any other contract bond necessary to win a bid on a project.
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The Importance of a Contractor License Bond
The contractor license bond is important for anyone who has a contractor license. It is a guarantee that the contractor will comply with all state and local regulations. That being said, your contractor license bond will not provide coverage in multiple states. Whichever state(s) you plan on conducting business will need separate bonds. Each state government will have their own policies and regulations, some not requiring this bond at all (although other contract bonds will be required for construction projects, such as performance bonds and payment bonds). This type of license bond can be thought of as a type of backing, stating that the work you provide as a contractor will be performed in good faith, so much so that a surety company supports it. Bonds are typically one of the final steps a contractor will take before the commencement of any project.
Why Choose The Surety Place For Your Contractor License Bond
The Surety Place, previously known as Surety Placement Services, was founded in 2002 with the number one goal to bring innovation and a high level of service the industry had not yet seen. As industry leaders from the start, we are a people first surety bond partner that you can trust! We establish a relationship with you in order to truly understand your business focus, whether it is large or small, complicated or difficult. As one of the only true specialists within the industry we supply access, partnerships and specialty programs with numerous “A” rated sureties across the nation. We pride ourselves on being here to help you; we want to service all your bonding needs with no appointments or contracts necessary.
Our industry knowledge and expertise, coupled with our specialty programs, allows us the unique ability to write your bonds when no one else can. We have over 50 years of combined surety experience, which makes us some of the best in the industry. Our dedicated account managers are all highly trained underwriters who provide our agents and clients a tailored bonding solution for individual or corporate needs. In today’s marketplace, surety access can be limited; but with Surety Place as your partner, you’ll find the white-glove service you have been searching for.
National Capabilities with a Local Feel
No matter the size of the bond or how complicated, Surety Place is built to find you an answer. Poor credit, financial hardship, fast growth, or just getting your company off the ground? We have options for you no matter what your circumstances are. We understand business. We also understand how difficult it can be when something that seems like such a small piece of the puzzle gets in the way of closing the deal or moving forward. We take that pressure off your mind so YOU can get back to work.
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At The Surety Place, we pride ourselves in our customer service! If you have any questions regarding a bond placement, give us a call or fill out the form to the right of the screen and one of our experienced staff members will be in touch with you shortly!