Please note that the following information is related to license and permit surety bonds. If you are a contractor seeking information on obtaining contract surety bid and performance bonds, please visit our
What is a Contractor Bond?
Contractor bonds are required to work on all public projects in order to ensure the job will be completed properly and completely. It is needed for any job the exceeds $100,000 due to the Miller Act. The contractor is responsible for making sure that the work they do is completed correctly, follows safety regulations and all building codes. To ensure all of this is completed a contractor’s license bond is required by the state of Pennsylvania. A contractor’s license bond actually protects two different parties: the developer who hired the contractor and the general public. This bond indicates that the contractor will always work ethically and professionally completing all of their work to code. This will ensure that the building is completed properly and that it is safe for occupancy.
Getting a Contractor’s License and Permit Bond.
Pennsylvania requires license and permit bonds on a state, county, city or municipality level. Since Colonial is the insurance company, you can easily obtain a bond customized to your location’s requirements. Below are a few example of state wide requirements by trade. Some of Pennsylvania’s 2,562 municipalities have established their own local licensing and certification requirements for contractors. Contractors need to register with the Pennsylvania Attorney General’s Office. Additionally, these contractors must maintain minimum insurance coverage and utilize contracts that comply with a number of consumer protection requirements specified in this law. to see more information.
What do Pennsylvania Surety Bonds Cost?
Surety bonds usually cost 1-15% of the required bond amount. Gleichzeitig setzte er seine medizinischen mehr hilfreiche Tipps studien fort. However, they can vary drastically all depending on the bond amount that you need and your rate. You can get an instant estimate by using our bond premium calculator, or apply online to to get a firm surety bond quote.
Does it matter where I get my bond
It’s important you understand how surety bonds work and that you’re responsible to pay claims in full, which makes it important that you find a bond company that will defend you from claims. Colonial is an A+ rated Surety company that has been incorporated since 1930. We are treasury listed and licensed and admitted in all U. S states and territories.
What is the process to obtain the bond?
Colonial offers one of they fastest ways to obtains a license and permit bond. We are the insurance company- which means no agent, no broker, and no middleman. There is no turnaround time to obtain you bond. The steps are simple- get a free quote online, fill out your information, answer our underwriting knockout question, and enter your payment method. Your bond will be available in a PDF form, and will always be accessible from your dashboard. Its that simple!
Types of Contractor Bonds
It is a common requirement while obtaining a license in the U. S. to post a contractor bond, whether it’s for electrical, plumbing, HVAC , or HVACR. Not only do all jobs need to be fulfilled and completed with all their contractual obligations, they also must ensure that they follow all relevant laws. For example: an electrical contractor bond functions similarly to other surety bonds. They represent a contract between three parties. The electrical contracting business is the principal, the authority that requires you to get bonded is the obligee, and the surety is the third entity which provides the bond’s backing (Colonial). Not all states require a bond but in some states this bond is one of the requirements in order to obtain an electrical, plumbers, HVAC, HVACR license or becoming a certified electrician. Some of Pennsylvania’s 2,562 municipalities have established their own local licensing and certification requirements for contractors such as electricians, plumbers, and home improvement contractors, etc. See the following city requirements: