License & Permit
Contractor License Bond
A contractor license bond is a surety bond a city, county, or state requires before a contractor can be licensed or pull permits.
- Required by
- Cities, counties, and some state licensing boards
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises that the contractor will follow local building codes, licensing laws, and permit conditions. The licensing authority is the obligee, and people harmed by the contractor's violations may claim against it. Claims often involve unpaid permit fees, code violations, or work abandoned in violation of the law.
Who needs it
- General contractors
- Specialty trades such as electrical, plumbing, HVAC, and roofing
- Contractors working in a new city or county
What the underwriter looks at
- Owner credit
- Contracting experience
- Prior claims or license complaints
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Is this the same as a performance bond?
No. A license bond covers compliance with licensing law for all your work in that jurisdiction. A performance bond covers one specific contract.
How much is the bond in Mobile?
The City of Mobile requires a $10,000 contractor license bond payable to its Urban Development Department. Other cities set their own amounts, so check with the permit office.