Montana Contractor License Bonds

How much does a contractor bond cost in Montana?

Various cities, counties, and local authorities throughout the State of Montana require contractors to post surety bonds. Below are the set bond amounts for popular contractor bonds:

  • Water Well Contractor Bond: $10,000
  • City of Missoula Gas Fitting Contractor Bond: $3,000
  • City of Missoula Sidewalk, Curb, and Paving Bond: $10,000
  • City of Missoula Excavation Contractor Bond: $20,000
  • City of Missoula Public Utilities Contractor Bond: $50,000

The surety company issuing the bond determines your premium rate, which is the percentage of the total bond amount you pay as the premium. During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. 

EZ Surety can issue premiums for Montana contractor license bonds for as low as 1% of the total bond amount for applicants with standard credit. If your credit is below average, we can still offer a competitive rate for your contractors license bond.

Why are contractor bonds important in Montana?

Contractor license bonds hold licensed contractors accountable for the quality of their work and protect the public from damages they’ve incurred due to the contractor’s violation of licensing laws.

When the surety company issues the bond, they provide a financial guarantee to the state or local municipality that the contractor will comply with the regulations set forth in the contractor license. If the contractor violates these regulations, causing a loss to the consumer, the consumer can file a claim against the bond.

If the claim is valid, the surety company will cover the costs to repair the damage up to the amount of the bond. The contractor is then liable to reimburse the surety company for all damages paid.

How do I get my general contractor's license in Montana?

The Montana Department of Labor and Industry requires all general contractors to register as a Construction Contractor or an Independent Contractor. Here are the steps for obtaining both types of general contractor's licenses:

Construction contractors 

  • Complete the application form
  • Register business with the Montana Secretary of State
  • Provide proof of workers' compensation insurance
  • Pay the $70 registration fee

Independent contractors

  • Complete the application form
  • Provide proof of your own independently established business
  • Provide proof of workers' compensation insurance or get an independent contractor exemption certificate
  • Pay the $125 registration fee

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