I need to know something about the state contractor's licensing law
for each of our 50
states in the US.  Specifically, I ONLY need to know what surety bond
amount the licensed contractor needs to post in each state or whether
a state has a requirement for a surety bond to secure a contractor's
license

---

Request for Question Clarification by darrel-ga on 11 Feb 2004 18:04 PST

Richad--

One point of clarification: Are you referring specifically to
home-improvement contractors (plumbers, roofers, electricians, etc.),
or are you referring to another type of contractor?

Thanks,

darrel-ga

---

Clarification of Question by richad-ga on 11 Feb 2004 19:26 PST

I am referring to construction contractors, like you describe, general
contractors and speciality contractors, like electrical, etc.

I am not interested in other professionals, such as, consultants or
design professionals.

does this answer your question?

rla

Below you will find the information regarding surety bonds by State.
For additional information and requirements for state licensing of
contractors, just follow the link that I am providing below each
listing.

--------------------------------------------------------

Alabama

Heating & Air Conditioning Contractors: 
?A $5,000 bond is required of each heating and air conditioning business.? 
http://www.contractorreferral.com/license/alabama.html

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Alaska

?Mechanical and specialty contractors are required to post a
commercial or negotiable surety bond or make a cash deposit in the
amount of $10,000.?

?Contractors are also required to provide proof of insurance in the
minimum amounts of $20,000 property damage, $50,000 for death or
injury to one person and $100,000 for death or injury to more than one
person.?

?Every general, specialty or mechanical contractor awarded a public
works contract exceeding $100,000 must provide a payment bond. A
municipality may exempt contractors from the public works bond
provision if the estimated cost of the project does not exceed
$400,000.?
http://www.contractorreferral.com/license/alaska.html

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Arizona

?License bonds are required of all contractor license applicants
ranging from $1,000 to $90,000. The amount of the bond is based on the
type of license applied for and the anticipated annual gross volume of
work in the state.?
http://www.contractorreferral.com/license/arizona.html

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Arkansas

?Contractors must file a surety or cash bond for not less than $10,000
(payable to the state of Arkansas) with the Contractors Licensing
Board prior to licensing.?
http://www.contractorreferral.com/license/arkansas.html
?Surety bond -- $10,000 for a general contractor or $5,000 for a
specialty or mechanical contractor.?
http://contractors-license.org/ak/ak.htm

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California

General Commercial Contractors:
?Payment/performance bonds are required for public works contracts in
excess of $25,000.?
?A license bond of $7,500 is required on all active licenses. A
separate "Bond of Qualifying Individual" also in the amount of $7,500
is required for a Responsible Managing Employee. A Responsible
Managing Officer owning 10% or more of the voting stock or equity of a
license is exempt from posting this additional bond.?
?A license bond of $10,000 is required for all swimming pool contractors.?
http://www.contractorreferral.com/license/california.html

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Colorado

?Electricians: bond is required on all public works projects over
$50,000 for at least 50% of the total amount payable.?
http://www.contractorreferral.com/license/colorado.html

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Connecticut

?Contractors must deposit $100 to the Home Improvement Guaranty Fund
and post a bond of $10,000 if ordered by the Commissioner.?
 
?A performance, payment bond in the amount of the contract is required
on public works contracts exceeding $25,000.?
http://www.contractorreferral.com/license/connecticut.html

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Delaware 

?A performance bond equal to the amount of the contract price is
required of the successful bidder on a public works contract.?

?All non-resident contractors are required to post a bond equal to 6
percent of any contract if total contracts equal $20,000 or more per
year. Cash bonds are acceptable for any contract amount. In lieu of
posting bonds, contractors may make application with the Director of
Revenue to accept a bank letter of credit to fulfill the bonding
requirements, or the Secretary of State may waive the bonding
requirements.?
http://www.contractorreferral.com/license/delaware.html

--------------------------------------------------------

Florida 

Contractors: Proof of a net worth ranging from $1,500 to $10,000
(depending on the classification) is required of applicants.

Electricians: Net worth must be a minimum of $5,000 or $10,000
depending on classifications.

?Contractors must execute a payment/performance bond when awarded a
public works contract exceeding $100,000. The governing authority
awarding the contract may exempt the contractor from the bond
requirement if the contract does not exceed $200,000.?
http://www.contractorreferral.com/license/florida.html

--------------------------------------------------------

Georgia 

?A bond equal to ten percent of the contract price is required by the
State Department of Revenue of out-of-state contractors. The bond is
automatically released two years after notification of completion of
the project.?
http://www.contractorreferral.com/license/georgia.html


--------------------------------------------------------

Hawaii 

?Applicants shall submit a certificate of insurance for worker's
compensation and a certificate of insurance from their insurer showing
liability coverage in the following amounts:

Property damage liability: $50,000 per occurrence 
Bodily injury: $100,000 per person 
$300,000 per occurrence 

Contractor license application and bond information can be obtained
by: The Contractor Referral Service and License Bureau of Hawaii at:
1-800-966-9596.?
http://www.contractorreferral.com/license/hawaii.html

--------------------------------------------------------

Idaho 

?The state of Idaho doesn't license general contractors working on
private sector residential or commercial projects. That's done at the
local level. However the state does license plumbers, electricians,
well drillers, fire protection sprinkler contractors, and public works
contractors.?
 
?All plumbing contractors need to post a $2,000 compliance bond. You
must do this before you can take the licensing exam. The bond expires
on December 31 each year.?
 
?Well driller's licenses - post a surety or cash bond for $5,000 to
$20,000 (amount is set by the Director of the Idaho Water Resource
Board)?
Fire Protection Sprinkler Contractor's License - post a bond for at least $2,000
http://contractors-license.org/id/Idaho.html

--------------------------------------------------------

Illinois 

Except for public works, construction is not regulated at the state level.

?Out of state contractors must post a bond with the Department of
Employment Security before commencing work on any contract over
$5,000. Chicago and other municipalities may have licensing
requirements.?

?A performance and liability bond may be required of each bidder of a
public works contract involving an amount in excess of $10,000 in a
city with a population of 500,000. A payment/performance bond equal to
the value of the contract is required if it is estimated at $25,000 or
more.?
http://www.contractorreferral.com/license/illinois.html

  
--------------------------------------------------------

Indiana 

State licensing requirements exist for plumbing contractors only.
http://www.contractorreferral.com/license/indiana.html

--------------------------------------------------------

Iowa 

?Out-of-state contractors must provide a surety bond equal to 5
percent of the contract price or $1,000, whichever is greater, before
starting a contract in excess of $5,000. A $50,000 bond may be
provided to cover any number of contracts up to $1,000,000.?
http://www.contractorreferral.com/license/iowa.html

--------------------------------------------------------

Kansas 

Kansas doesn't license construction contractors at the state level.
But you should check for licensing requirements at the local level.
http://contractors-license.org/ks/Kansas.html

Highway Prequalification:
Contractors must provide experience information and financial
statements. For prequalification limits over $500,000 audited
financial statements are required.
A bond in the amount of 5 percent of the total contract is required
from contractors on all contracts.

Contract Registration:
For contracts that are required to be registered, a bond in the amount
of 8% of the contract amount (minimum $1,000) must be filed with the
Department of Taxation. For sales tax exempt projects a 4% bond is
required ($1,000 minimum).
http://www.contractorreferral.com/license/kansas.html

--------------------------------------------------------

Kentucky 

?Contractors shall furnish a payment bond on public works contracts
exceeding $2,000 to assure the payment of unemployment compensation
contributions.?
?A performance and payment bond equal to the contract price is
required on public works contracts.?
http://www.contractorreferral.com/license/kentucky.html

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Louisiana 

Residential construction contractors must file insurance certificates
?for worker's compensation and liability coverage in a minimum amount
of $100,000.?
?Nonresidential contractors and subcontractors must register with the
Department of Revenue and Taxation if the contract is in excess of
$3,000. The contractor shall also post a bond or other surety in the
minimum amount of $1,000.?
http://www.contractorreferral.com/license/louisiana.html

--------------------------------------------------------

Maine
 
?General building contractors do not need a license in Maine. You'll
need to be licensed to do asbestos abatement work, or electrical or
plumbing contracting.?
http://contractors-license.org/me/Maine.html
?Unless otherwise exempted public works contracts exceeding $50,000
require a performance and a payment bond equal to the amount of the
contract.?
http://www.contractorreferral.com/license/maine.html

--------------------------------------------------------

Maryland 

?General construction contractors don't need a license to work in
Maryland. You will need a license to do electrical, plumbing or HVACR
contracting, or work on home improvement projects.?
http://contractors-license.org/md/Maryland.html

Highway Work:
?Although there is no formal pre qualification process, experience and
equipment certification, liability insurance ($1,000,000/2,000,000)
and applicable state contractor licenses are required in addition to
the bid bond requirement on contracts exceeding $100,000.?

Home Improvement Contractors:
?Home improvement contractors shall show proof of financial
responsibility in the form of "unencumbered liquid assets" of at least
$10,000. Contractors shall also show proof of a workers' compensation
policy, as well as $50,000 in liability insurance.?

HVACR:
?Master, master restricted and limited licensees must submit proof of
liability insurance coverage in the minimum amounts of $400,00 per
occurrence.?
http://www.contractorreferral.com/license/maryland.html

--------------------------------------------------------

Massachusetts 

?Public works contracts with an estimated value of $5,000 to $25,000
require a bid bond of 5 percent. A Certificate of Eligibility from the
Commissioner of Labor and Industries is required for contracts in
excess of $25,000.? http://www.contractorreferral.com/license/massachusetts.html

--------------------------------------------------------

Michigan 

?Public works contracts in excess of $100,000 require the contractor
to obtain a Certificate of Awardability from the Michigan Department
of Civil Rights.?

?Residential builders, maintenance & alteration contractors,
electrical, mechanical and plumbing contractors must participate in a
construction lien recovery fund. The fund limit is $75,000 per
property.?
http://www.contractorreferral.com/license/michigan.html

--------------------------------------------------------

Minnesota 

?Electrician's Licenses: The Board issues four types of contractor
licenses ? Class A Electrical, Class B Electrical Elevator, and alarm
and communication. It also issues eight types of electrician licenses.
Let's look first at the contractor licenses. To get either contractor
license you must post a contractor's bond for $5,000. You must also
have general liability insurance for $100,000 per occurrence, $300,000
aggregate, and property damage insurance for $300,000 per occurrence,
$300,000 aggregate. There are no experience requirements for
contractor licenses?.
http://contractors-license.org/mn/Minnesota.html
?Electrical contractors must provide a $5,000 bond and show evidence
of liability insurance and a certificate of employment of a master
electrician.?
http://www.contractorreferral.com/license/minnesota.html

--------------------------------------------------------

Mississippi

Commercial Construction Contractor's Certificate 
?On the application, the Board will ask you about your company
organization, personnel, financial condition, equipment, and
experience. You must have workers' compensation insurance and
liability insurance for at least $300,000 per occurrence and $600,000
aggregate. You'll need federal and Mississippi tax numbers, and a
Certificate of Authority from the Mississippi Secretary of State.?
http://contractors-license.org/ms/Mississippi.html

--------------------------------------------------------

Missouri
 
Construction is not regulated at the state level in Missouri.
http://www.contractorreferral.com/license/missouri.html

--------------------------------------------------------

Montana
 
?All construction contractors and subcontractors must register with
the Department of Labor and Industry if they have employees. Those
contractors without employees may register, but are not required to do
so.?
http://contractors-license.org/mt/Montana.html
Construction Work Regulated:
?All plumbing and electrical work requires licensing at the state
level. All other construction work over $500 requires registration.?
http://www.contractorreferral.com/license/montana.html

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Nebraska 

?Bonds on construction work by out of state contractors are required
according to the following schedule:
Contract Value-Bond Requirement 
Under $2,500 None 
$2,500 to $10,000 $1,000 Bond 
$10,000 to $100,000 10% of contract 
Over $100,000 5% of contract 

?Contractors not covered by the mechanic's lien laws shall provide a
payment bond for a minimum of the contract value. State contracts
valued at less than $15,000 and local government contracts valued at
$5,000 or less are exempted from these bonding requirements.

Work for the Nebraska Department of Roads or the University of
Nebraska requires a bond equal to 100 percent of the value of the
contract.?
http://www.contractorreferral.com/license/nebraska.html

--------------------------------------------------------

Nevada
 
?License bonds are required of all contractor license applicants
ranging from $1,000 to $50,000. After five years, the board may waive
the bond requirement.?
http://www.contractorreferral.com/license/nevada.html

--------------------------------------------------------

New Hampshire 

?Public works contracts require a 100% performance and payment bond as
well as a 5 % bid guaranty.?
http://www.contractorreferral.com/license/new_hampshire.html

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New Jersey
 
Plumbing Contractors: 
?Applicants must pass a business law and a trade examination and
document five years of experience. A $3,000 bond is also required.
Public works contracts require a performance and payment bond, to be
determined by the Director of the Division of Building and
Construction.? http://www.contractorreferral.com/license/new_jersey.html

--------------------------------------------------------

New Mexico
 
?A license bond or cash collateral or audited financial statement is
required. The amount of the bond ranges from $500 to $5,000 and is
based on the anticipated dollar level of individual projects or
permits in the state. Financial responsibility is only for fines and
penalties imposed by the division. There is no consumer financial
protection.?
http://www.contractorreferral.com/license/new_mexico.html

--------------------------------------------------------

New York 

?State regulations do not exist for public or private construction
work, except for asbestos handling.
The New York comptroller may require a payment bond before the
approval of a public works contract.?
http://www.contractorreferral.com/license/new_york.html
?Except for asbestos abatement work, all construction work in New York
is regulated at the local level.?
http://contractors-license.org/ny/NewYork.html

--------------------------------------------------------

North Carolina
 
Highway Prequalification:
?Contractors must submit experience history applicable to the type of
work the Financee will be bidding on, financial statements, equipment
lists, references, resumes of principles and bond capacity of
$50,000.? http://www.contractorreferral.com/license/north_carolina.html

--------------------------------------------------------

North Dakota 

Electricians: 
?Applicants must pass a trade examination with a minimum score of 70%
and provide documentation of four years of experience for a journeyman
and one year as a journeyman for a master. A $2,000 bond is also
required for electrical classification.?
?Public works contracts exceeding $25,000, except for special
municipal improvements, require a bond in an amount equal to the
contract price. A 5 percent bid bond is required for public building
contracts valued higher than $50,000.?
http://www.contractorreferral.com/license/north_dakota.html

--------------------------------------------------------

Ohio 

?Public works contracts for the Department of Transportation require a
performance and payment bond in the amount of 100 percent of the
states estimate of the job. Other public works contracts require a
combined bond equal to the contract, or a letter of credit, certified
check or cashier's check for 10 percent of the contract value.?
http://www.contractorreferral.com/license/ohio.html

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Oklahoma
 
?Electrical Contractors:
Five years of experience must be documented as well as posting a
$5,000 bond. $50,000 general liability insurance also required.

Plumbing Contractors: 
A $5,000 bond is also required. 

Mechanical Contractors: 
Four years of experience and a $5,000 bond are also required. A
$50,000 general liability insurance policy must be maintained.

Other: 
Nonresident contractors must post a surety bond or cash deposit for
10% of the contract price or 3 times the tax liability to be incurred
under the contract with the Oklahoma Tax Commission.?
http://www.contractorreferral.com/license/oklahoma.html

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Oregon

License type	   Bond
General Contractor - all structures	$15,000
General Contractor - residential only	$15,000
Special Contractor - all structures	$10,000
Special Contractor - residential only	$10,000
Limited Contractor (under $30,000 gross/year)	$5,000
Inspector	$10,000
http://contractors-license.org/or/or.htm

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Pennsylvania 

?Construction Contractors are not licensed in Pennsylvania. However
the Department of Transportation has certain requirements for public
works contractors.?
http://contractors-license.org/pa/Pennsylvania.html
?Public works contracts require posting of 100 percent performance and
payment bonds for contracts over $5,000.?
http://www.contractorreferral.com/license/pennsylvania.html

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Rhode Island 

?Public works contracts by any city, town agency or committee in
excess of $1,000 shall post a performance/payment bond for not less
than 50% of the contract price. Contracts in excess of $50,000 may be
exempted.?
http://www.contractorreferral.com/license/rhode_island.html
?If you build, repair, or remodel one- to four-family dwellings in
Rhode Island, you must register with the Contractors' Registration
Board. Some specialty trades must be licensed in Rhode Island.?
http://contractors-license.org/ri/RhodeIsland.html
   
--------------------------------------------------------

South Carolina
 
?Highway contracts require a performance/payment bond equal to 100% of
the contract value.?

?Residential builders must submit a bond for $15,000 or a financial
statement verifying a net worth of at least $50,000. Residential
specialty contractors must submit a $5,000 bond if individual
homeowner contracts exceed $5,000 on one category.?
http://www.contractorreferral.com/license/south_carolina.html

--------------------------------------------------------

South Dakota 

?Electrical Contractors: Applicants must pass a trade examination with
a minimum score of 70%. Two years journeyman experience and a $10,000
bond is also required.?

?Bond requirements for public works contracts under $25,000 may be
waived. Performance/payment bonds are required in an amount of 100% of
the contract price when over $25,000.?
http://www.contractorreferral.com/license/south_dakota.html

--------------------------------------------------------

Tennessee
 
?All contractors must file a surety bond before performance on any
public work contracts. Contracts of $10,000 or less may be exempted
from this requirement. A payment bond for 25 % of the contract price
is required on public works contracts in excess of $25,000.?
http://www.contractorreferral.com/license/tennessee.html

--------------------------------------------------------

Texas 

?Only specialty contractors, including HVAC, fire sprinkler systems,
plumbing, and well drilling/pump installation specialists, need to be
licensed in Texas.?

?Texas does not license Electricians at the state level. Licensing and
work standards are regulated at a local level, generally through a
municipal office, such as a building inspection department.?
http://contractors-license.org/tx/Texas.html

--------------------------------------------------------

Utah 

?Performance bonds are required on contracts of $2,000 or more if the
client requests it.?
?Proof of workers' compensation insurance and public liability
insurance in a total amount of $300,000 is required.?
http://www.contractorreferral.com/license/utah.html

--------------------------------------------------------

Vermont 

?Performance, labor and material bonds are required for contracts
awarded by the Agency of Transportation. Performance bonds are
required for all contracts exceeding $100,000. Performance bonding on
projects less than $100,000 may be waived by the Secretary of
Transportation.?
http://www.contractorreferral.com/license/vermont.html

--------------------------------------------------------

Virginia 

?The Board issues three types of contractor's licenses or certificates 

A Class A contractor works on single contracts for $70,000 or more or
contracts totaling $500,000 or more over a one-year period (company
must have a net worth of at least $45,000).

A Class B contractor works on single contracts for $7,500 or more but
less than $70,000 or contracts totaling $150,000 or more but less than
$500,000 over a one-year period.

A Class C contractor works on single contracts for $1,000 or more but
less than $7,500 or contracts totaling less than $150,000 over a
one-year period.

The Board issues these three types of licenses in each of these
general trades -- building, highway/heavy, electrical, plumbing, and
HVAC.?
http://contractors-license.org/va/Virginia.html

--------------------------------------------------------

Washington 

Contractors: ?Contractors are required to carry liability insurance
and a post cash deposit or license bond of $6,000 for general and
$4,000 for specialty contractors.?

Electrical: A $4,000 bond is required of electrical contractors. 

Other:  ?Performance and payment bonds for 100% of the contract price
are required for public works.?
http://www.contractorreferral.com/license/washington.html

--------------------------------------------------------

Washington DC 

Heating & Air Conditioning Contractors: 
2A $5,000 bond is required of each heating and air conditioning business.?
http://www.contractorreferral.com/license/washington_dc.html

--------------------------------------------------------

West Virginia 

?Contractors who have not actively engaged in contracting in the state
for the last five years must post a wage bond equal to four weeks
gross payroll, at full operating capacity, plus 15 percent.?
?Nonresident contractors must register with the State Tax Commissioner
prior to performing contracts and shall deposit 6% of the contract
price in cash in the contractors use tax fund or provide a corporate
surety bond. A bond equal to the cost of materials and labor is
required for public works other than highway projects.?
http://www.contractorreferral.com/license/west_virginia.html

--------------------------------------------------------

Wisconsin 

?Nonresident contractors shall file a surety bond with the Department
of Revenue for 3 percent of any contract of $50,000 or more. The bond
is also required when two or more contracts total $50,000 or more.
Bond requirements may be waived at the Department's discretion. A
combined performance/payment bond may be required by the state for
contracts in excess of $500.?
http://www.contractorreferral.com/license/wisconsin.html

--------------------------------------------------------

Wyoming
 
?Nonresident contractors shall post a security equal to 3 % of the
total value of the contract with the Department of Revenue and
Taxation. Nonresident contractors shall file a $500 performance and a
$3,000 indemnity bond on contracts between $500 and $100,000. For
contracts exceeding $100,000 the indemnity bond increases by $1,000
per each additional $100,000 or part thereof, to a maximum of $25,000.
Certified resident contractors are allowed a 5 percent preference on
public works projects. Public works contracts from $7,500 to $100,000
require a bond of 50 percent of the contract price. Contracts through
the Department of Administration and Fiscal Control of $25,000 or more
require a bond in an amount equal to 100 percent of the contract
price.?
http://www.contractorreferral.com/license/wyoming.html

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Source of information:

National Contractor Referrals and License Bureau
http://www.contractorreferral.com/license/

Contractor?s License Reference Site
Click on the abbreviation for any state in the map to see information
about getting licensed in that state.
http://www.contractors-license.org/cna03.htm


Search criteria:
State contractor's licensing law
State contractor's licensing requirements
Contractor?s surety bond fee

I hope you find this information useful.

Best regards,
Bobbie7

Very complete answer with excellence source references/links.