Massachusetts Contractor License Bonds
Learn more about Massachusetts Contractor License Bonds
How much does a construction contractor bond cost in Massachusetts?
The cost of construction contractor bonds are calculated as a percentage of the required bond amount. In Massachusetts, the state requires that certain contractors or subcontractors have a Contractors License Bond. This surety bond is instantly issued for $100 plus shipping cost and fees. Some of the cities and counties in the State of Massachusetts, such as Cambridge, Brookline, and Quincy require their own specific surety bonds. Fill out our quick and easy bond forms to buy your bonds instantly!
Why are contractor bonds important in Massachusetts?
Contractor license surety bonds are required to be purchased by contractors to offer a financial guarantee to the state that the contractor will ensure compliance with building codes and regulations as well as ensure ethical business practices. These bonds are required for various construction trades including but not limited to construction or deconstruction of residential and commercial buildings, HVAC, electrical work, plumbing and other specialities.
Massachusetts contractor license bonds are important because they protect the consumer in the event that the contractor violates building codes or regulations or commits fraud. If the actions of the contractor causes a loss to the consumer, the consumer can file a claim against the bond and if it’s a legitimate claim, the surety bond penalty amount will cover the costs for the consumer.
Types of contractor bonds in Massachusetts for purchase
Brookline Plumbing Contractor or Drainlayer Bond - These permit bonds are required for contractors that aim to be included on the Town of Brookline’s official list of licensed drainlayers for homeowners to choose from.
Cambridge Contractor Bond - The City of Cambridge requires all contractors to guarantee their performance with a Contractor Performance Bond.
Hillcrest Sewer District General Contractor Bond - The Hillcrest Sewer District in the State of Massachusetts requires all general contractors to guarantee their performance with a Contractor Bond.
Needham Contractor Bond - Contractors opening the road or traversing the sidewalk with heavy equipment are required to have a Contractor Bond for the town of Needham. This permit bond will protect against loss in the event of the failure of the permit holder to complete the work or make required repairs or restoration of damages involving the work.
New Bedford Contractor Performance Guarantee Bond - New Bedford requires that any contractor intending to disturb the surface of any public right-of-way, must have a $10,000 annual performance bond that will need to be renewed by April 1st each year. This does not apply to work performed by a city department, or work performed on behalf of a city department by a private contractor who has provided payment and performance bonds to the city pursuant to the terms and conditions of a contract.
State of Massachusetts Nonresident Contractor Tax Payment Guarantee Bond - The State of Massachusetts requires nonresident contractors to have a Tax Payment Guarantee Bond in order to secure payment of the tax payable relative to tangible personal property consumed or used pursuant to or in the carrying out of the contract. This bond has to be posted for 6.25% of the contract price.
Quincy Contractor Performance Bond - The City of Quincy requires all contractors to guarantee their performance with a Contractor Performance Bond.
How do I get my general contractor's license in Massachusetts?
In order to conduct business as a general contractor in Massachusetts, you will need a Massachusetts Construction Supervisor License. This license can be either unrestricted or restricted.
- An unrestricted Massachusetts Construction Supervisor License will allow you to directly supervise construction activities regulated by the Massachusetts Board of Building Regulations and Standards for single or multi-family homes as well as for buildings up to 35,000 cubic feet.
- A restricted Massachusetts Construction Supervisor License will allow you to supervise construction activities for single or multi-family homes as well as accessory buildings of any size.
You will have to pass the Construction Supervisor License exam which assesses your knowledge of the Massachusetts State Building Code before being granted a Massachusetts unrestricted or restricted Construction Supervisor License.
In order to qualify for the exam you must:
- Be at least 18 years old
- Have 3+ years of design or construction experience or education in the field for which you are seeking licensure.
The exam administrator, Prometric, provides a detailed guide on what is required in order to take the exam, and that guide is linked here for your convenience.
The Massachusetts Construction Supervisor license is valid for two years and will then need to be renewed for a fee of $100. If you do not renew your license within two years of the license expiration date, you will have to take the exam again to be granted a new license.
These are contractor licensing requirements at the Massachusetts state level, however, some municipalities have their own contractor licensing requirements to consider.