Understand the required obligation.
Contractors may need a bond to obtain or maintain a trade license, pull a permit, or satisfy a municipal obligation. The obligee's required form should be used exactly.
Common uses
- General contractor licenses
- Electrical, plumbing, HVAC, and specialty trade licenses
- Right-of-way and permit bonds
- Code-compliance obligations
Information to prepare
- Trade and license classification
- Obligee and jurisdiction
- Required form and amount
- Business ownership information
- Project or permit details when requested
Frequently asked questions
Does a contractor license bond cover defective work?
The bond's obligation is defined by the required form and law. It is not the same as general liability, professional liability, or a workmanship warranty.
What if I need a performance bond?
Performance and payment bonds are contract bonds and usually require project and financial underwriting beyond a license-bond request.
Bond descriptions are general. Availability, underwriting, pricing, indemnity, collateral, form, and delivery vary. The application and issued bond control.