Contractor License Bond

What is a Contractor License Bond?

Construction contractors typically must obtain registration or licensing from their state or local authorities, and as part of this process, they often need to secure a contractor license bond.

The contractor license bond is a form of surety bond, essentially constituting an agreement among three key parties: the principal (the contractor), the obligee (typically the state or entity mandating the bond), and the surety (the bond provider).

This contractor license bond serves as a guarantee, assuring that you will adhere to all the regulations imposed by your local authorities. It functions much like a credit line for your business, offering an additional layer of protection for your clients by guaranteeing your commitment to fulfilling your work with diligence and in compliance with all relevant requirements.