What is a Delaware contractor license bond?
Contractors in Newark, Wilmington, and New Castle County, as well as non-residential contractors in Delaware, must post a contractor license bond before doing business. Delaware does not require contractors to obtain a surety bond at the state level, so the above local licensing authorities determine bond requirements for contractors.
A bond safeguards a contractor’s customers against potential wrongdoing performed by the contractor throughout the project. It ensures the contractor abides by local and state regulations governing the trade.
A contractor license bond is a three-party agreement between a principal, an obligee, and a surety.
- The contractor is the principal that needs the bond.
- The authority requiring the bond is the obligee.
- The surety issues the bond and backs it financially.
Learn more about how contractor license bonds work in our complete guide.
Get Your Delaware Contractor License Bond:
Delaware Contractor License Bond Requirements and Costs
A contractor applying for a license bond will pay a premium to obtain the bond. This premium is a percentage of the total bond amount determined primarily by a contractor’s personal credit score. However, personal and business finances and industry experience may also be considered. Those with an excellent credit score can expect to pay .75%-1.5% of the bond amount, and those with poorer credit may pay 5% or higher as their premium.
General contractors, subcontractors, and minor renovations contractors must post a contractor license bond. The bond amount ranges from $10,000 to $200,000, depending on the license type.
Plumbers and contractors doing work on public streets, sidewalks, and curbs are required to post a license bond. The general bond amount is $3,000.
Class A, B, C, and U contractors, decorative appliance contractors, master HVACR contractors, master plumbers, outside utility contractors, sewer and drainage cleaners, and third-party inspectors must post a license bond. The bond amount ranges from $10,000 to $200,000, depending on the license type.
All those seeking to conduct business in Delaware who are not state residents must post a contractor license bond. The bond is equal to 6% of the project value for the project they aim to perform.
Get Your Contractor License Bond in Delaware
ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email email@example.com or call 888.435.4191 to speak with an agent directly.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.