What is the Commonwealth of Virginia Contractor License Bond?
The Commonwealth of Virginia Contractor License Bond (also called a Virginia CLB) is a surety bond required by the Virginia Board of Contractors, a division of the Commonwealth of Virginia Department of Professional and Occupational Regulation DPOR), for a contractor to be able to complete their contractor license application.
The bond protects consumers against unlawful business activity and ensures that the contractor operates properly under all Virginia state regulations. Individuals who have suffered losses or other injuries due to the fraudulent acts of a contractor or their failure to follow the regulations of their trade can file a claim on the contractor’s bond.
If the contractor fails to resolve the claim and the surety company finds the claim is valid, the surety will compensate the injured party up to the bond amount of $50,000. The principal (aka the contractor) is financially responsible for reimbursing the surety company for the claims paid out, plus any additional fees and expenses incurred by the surety.
Who has to get a Virginia Contractor License Bond?
Only contractors who fall into classes A or B are required to provide a Virginia Contractor License Bond. While class C contractors are exempt from the requirement of a statewide contractor license bond, you should always check any local licensing departments to determine if a contractor license bond in a particular city or county that you operate in is required.
Here is a more detailed breakdown of the Virginia contractor license classes:
- Class A Contractor – Allows you to work on any project size.
- Class B Contractor – Allows you to work on single projects valued between $10,000 and $120,000, not exceeding $750,000 in total annually.
- Class C Contractor – Allows you to work on single projects valued between $1,000 and $10,000, not exceeding $150,000 in total annually.
How much does this bond cost?
The Commonwealth of Virginia Contractor License Bond requires a $50,000 bond amount. Fortunately, your bond amount is not the same as your premium. Your premium will be determined primarily based on your credit using a soft credit check. At EZ Surety Bonds, you may see quotes starting around 1% of the bond amount for applicants with optimal credit.
If you have nonstandard credit, we still encourage you to apply for your free quote! At EZ Surety Bonds, we work with a variety of surety companies to find you the best quote available. The application process is free, and the soft credit check will not harm your overall credit score.
For the Virginia CLB, the obligee is the Virginia Board for Contractors, a division of the Commonwealth of Virginia Department of Professional and Occupational Regulation. Here are their contact details:
Commonwealth of Virginia
Department of Professional and Occupational Regulation
9960 Mayland Drive, Suite 400
Richmond, Virginia 23233-1485
Phone: (804) 367-8511
How to get your Commonwealth of Virginia Contractor License Bond
EZ Surety Bonds makes the bond application process straightforward and free. Apply for your Virginia CLB by filling out the short application, and someone will contact you regarding your free quote within 24 hours.
We are always glad to assist you! If you have questions about surety bonding, please reach out to our surety experts at email@example.com or call 1-866-546-4605.
Frequently asked questions
To get your contractor license in Virginia, you must:
1. Complete and submit the Virginia Contractor License Application. Make sure you know what type of license you need.
2. Take a comprehensive pre-licensing course and exam. A designated employee must complete eight hours of pre-licensure training and a knowledge test.
3. Register your business. A Virginia contractor license is only issued to businesses, not individuals, so you must set up a legal business entity.
4. Obtain a surety bond. With a bond amount of $50,000, surety companies require a soft credit check to quote these bonds.
5. Secure workers’ compensation insurance. This is required for companies with more than two employees.
6. Pay the application fee. Application fees vary depending on the license category: Class A license for $385, Class B license for $370, and Class C license for $235. (Fees as of 2022)
We recommend you check out our comprehensive guide to obtaining a Virginia Contractors License here.
The Commonwealth of Virginia CLB has a $50,000 bond amount, and the cost of this bond is primarily dependent upon your credit. Applicants with optimal credit may see their premium quote starting around 1% of the bond amount. If you have nonstandard credit, we encourage you to apply for your bond anyways! Applying for your bond quote is free, and the credit check will not harm your overall credit score. Simply fill out the quick application form on our site to get your free quote.
After you pay for your bond, we will mail the original bond document to you. Every obligee has its own filing requirements. Some allow electronically filed bonds, while others may require the original bond to be signed by the principal and mailed to them directly. For this reason, we recommend you verify the filing requirements of your obligee before doing anything with your bond.