Please note that the following information is related to contractor’s license bonds. If you are a contractor seeking information on obtaining contract surety bid and performance bonds, please visit our contract bond page.
What is a Illinois contractor’s license bond?
In Illinois, contractor bonds are required by city or state authorities for multiple construction specialists. An Illinois contractor license bond protects the contractor’s customers and the principal from potential fraud and misuse on construction works, guaranteeing all local and state rules are followed by contractors. An Illinois contractor bond is a three-party contract: the construction company that needs to get bonded (the principal), the authority that requires it is the obligee, and the third party which provides the bonding is the surety.
Obtaining Contractor’s License Bonds for my trade
Various cities and contractor classifications in Illinois require contractors to post surety bonds prior to completing work. Applicants should verify their required bond amount with the city and/or government entity in charge of licensing and registration for their classification prior to bonding.
Bonding requirements for general and residential contractors applies to the entire state of Illinois. The following have surety bond requirements that vary for contractors:
- Roofing Contractors require a license bond in the amount of $10000 limited surety bond or $20000 unlimited surety bond
- Lawn Sprinkler System Contractors require a license bond in the amount of $20000
- Irrigation Contractors require a license bond in the amount of $20000