What is a Georgia Residential and General Contractors Bond?
The Georgia Residential and General Contractors Bond is a surety bond required by the Georgia State Licensing Board for Residential and General Contractors that ensures that licensed contractors will comply with all state requirements and regulations. Essentially, the bond aims to protect the public from injury caused by a licensed contractor. But how?
A GA contractor license bond is a contract between the surety company that writes the bond, the principal (the contractor), and the obligee, which is the entity that requires the bond (i.e., the Georgia State Licensing Board for Residential and General Contractors). Any individual who suffers losses or other injuries due to a licensed contractor’s failure to comply with licensing regulations, Georgia state laws, and building codes can file a claim against the bond.
If a claim is valid, as determined through an investigation by the surety, the surety will compensate the injured party up to the bond amount of $25,000. Consequently, it is the principal’s responsibility to reimburse the surety for all valid claims, plus additional fees and expenses incurred.
Who has to get a Georgia Contractor License Bond?
Contractors must have a valid state license to work on residential or commercial projects in Georgia. The Georgia Residential and General Contractors Bond is a required step to obtain your state residential contractor license or general contractor license. In addition to the state license and bond, numerous counties and municipalities throughout Georgia may have separate license and bonding requirements.
Here are some of the cities and counties within Georgia that most commonly require surety bonds for contractor licenses and permits:
- Augusta
- Cordele
- Columbia
- East Point
- Grovetown
- Kennesaw
- Lincoln
- Macon
- Powder Springs
- Putnam County
- Smyrna
- Thomas County
- Valdosta
How much does this bond cost?
The Georgia Residential and General Contractors Bond has a required bond amount of $25,000. Fortunately, this amount is not what you are required to pay for your bond. Your premium will typically only be a percentage of the bond amount.
The price you pay for your bond, your premium, is determined primarily by your credit (using a soft credit check) and experience in the industry. The surety will analyze those factors (and others) and assign you a premium rate. Individuals with excellent credit and industry experience may see quotes for their bond starting as low as 1% of the bond amount.
Although the premium you pay for a Georgia contractor license bond is determined by your credit, we encourage you to apply even if you have nonstandard credit. At EZ Surety Bonds, we have a variety of markets we work with to try to find you the best quote available. Simply fill out the short application form for the bond you need today.
Obligee information
As mentioned earlier, the obligee of the Georgia General and Residential Contractors Bond is the Georgia State Licensing Board for Residential and General Contractors. You can contact the Licensing Boards Division here.
How to get your Georgia Residential and General Contractors Bond
EZ Surety Bonds offers quick, easy, and free online applications for any bond you need. Obtaining your Residential and General Contractors Bond is as simple as filling out the short application, paying your premium, and filing it with the obligee.
We encourage you to contact our surety experts via email at info@ezsuretybonds.com or by phone at 1-866-546-4605 if you ever have any questions.
Frequently asked questions
How to become a Residential and General Contractor in the state of Georgia?
To become a licensed contractor in Georgia, you need a Residential or General Contractor License. The following are the basic requirements to get your license:
- Fill out the license application that applies to you: residential contractor license or general contractor license.
- Pass the knowledge and skills exam, which may include the Georgia Business and Law exam and the National Association of State Contractors Licensing Agencies (NASCLA) exam, depending on the type of license you are applying for.
- Acquire a $25,000 Georgia Residential/General Contractor License Bond.
- Submit all required documentation and all applicable fees.
- Acquire any other licenses, permits, and/or bonds required by the city or county you will be operating in.
For more information regarding this process, check out our comprehensive guide on how to get your Georgia Contractors License.
How much is a Residential and General Contractors Bond in Georgia?
The Georgia Residential and General Contractors Bond requires a $25,000 bond amount. Surety bond premiums are calculated based on several factors, such as the applicant’s credit (using a soft credit check) and experience in the industry. Applicants with excellent credit may see premium rates starting around 1% of the bond amount. Even individuals with nonstandard credit are encouraged to apply because, at EZ Surety Bonds, we work with a variety of markets to find you the best quote available.
After I purchase my Georgia Contractor License Bond, what do I do?
After you purchase your contractor license bond, we will mail the original document to you. You will want to file your bond with the obligee as soon as possible. Some obligees accept an electronic copy, while others may require you to sign the original bond and mail it to them directly. Every obligee has its own filing requirements, so it’s recommended you verify what they require before doing anything with your bond.
