Sioux Falls Building Contractor Bond

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Who needs a building contractor bond in Sioux Falls, South Dakota?

All contractors in Sioux Falls must be licensed with the city and post a surety bond. The required bond for residential building contractors is $20,000, and all other contractors must post a $10,000 bond. “Other” contractors include:

The complete list of contractors requiring a license and bond is listed by the City of Sioux Falls. 

If you have any questions, please reach out to ZipBonds by calling (888) 435-4191. We’d be happy to walk you through the entire bonding process. See our page on South Dakota contractor license bonds for state-specific information.

Get Your Sioux Falls Contractor Bond:

How do contractor bonds work?

Contractor bonds ensure that contractors meet all applicable regulations and codes of the obligee (City of Sioux Falls). The bond is a safeguard for clients. 

The contractor acts as the principal in the bond contract. The bond guarantees a client compensation if the contractor breaks licensing and permit laws that result in damages. The surety may cover any costs to settle a bond claim upfront, but the contractor is ultimately responsible for paying back the surety over time.

Contractors don’t need to pay the full bond amount to acquire their bond. They will instead pay a premium, a small percentage of the bond value. ZipBonds can issue these bonds quickly for just $100.

Frequently Asked Questions

Your bond will often cover you for the calendar year you first post it. The bond renewal date will be the same day annually for every year your project continues. The bond renewal date will be listed on the bond form upon completion. You must keep your license and bond up to date to remain in good standing with the city.

The bond value is the maximum dollar amount a client can obtain directly from a contractor. If damages exceed that amount, clients may seek other methods of compensation. As a contractor, you should avoid claims at all costs by working professionally and efficiently. 

Apply for Your Contractor Bond in Sioux Falls, SD

ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email or call 888.435.4191 to speak with an agent directly.



Founders Ryan Swalve and Zach Mefferd formed the vision for 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.