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 North Carolina Contractor’s License Bond?
In North Carolina, contractor’s bonds have a state mandated along with city mandated standards. Depending on your trade and the city you work in as a contractor, there are local codes and statues governing contractor’s license bond requirements. Customarily, each job requires contractor’s license bonds for certain contractors to be held prior to undertaking construction services. The bond generally ensures that the contractor will comply with all required codes and laws. The State of North Carolina, or another local agency, will be named as the oblige on the bond-but a contractor’s license bond must be obtained from an insurance company licensed to write surety bonds in North Carolina. The surety company must be qualified and up to date with all codes and laws. If the contractor fails to meet these standards, the bond pays their liability.
Obtaining Contractor’s License Bonds as per Requirements.
North Carolina requires contractor’s license bonds for the certain trades state wide, and specific requirements in Greensboro and Winston-Salem. Since Colonial is the insurance company, you can easily obtain a bond customized to your location’s requirements. Below are a few examples of required county bonds and their amounts.
- Electrical Contractors –required to hold a Statement of Bonding Ability of $50,000.
- Landscape Contractors –required to hold Landscape Contractors’ Licensing Surety Compliance Bond of $130,000.
- Electrical requires a $2,000 bond
- Plumbing requires a $2,000 bond
- Heating requires a $2,000 bond
- Air Conditioning requires a $2,000 bond
- Mechanical Refrigeration requires a $2,000 bond
- HVAC requires a $2,000 bond
- Concrete requires a $2,000 bond
- Street, Bridge and Sidewalk requires a $20,000 bond
- Electrical requires a $2,500 bond
- Heating requires a $2,500 bond