Connecticut Contractor License Bonds

What you need to know about Connecticut Contractor License Bonds

Connecticut Contractor License Bonds

How much does a construction contractor bond cost in Connecticut?

Various types of contractors are required to post a surety bond as part of the licensing process to operate in Connecticut. Some cities and counties in the State of Connecticut require their own specific surety bonds. Below are the required bond amounts for popular Connecticut contractor license bonds:

  • Bristol Contractor’s Permit Bond: Varies
  • Metropolitan District Sewer and Contractor Bond: $10,000
  • Farmington Drain Layer’s Bond: $5,000
  • Plymouth Excavating Bond: $5,000
  • Out of State Contractor Bond: $10,000

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 Connecticut contractor license bonds for as low as 1% of the required 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 Connecticut?

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 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 Connecticut?

The State of Connecticut has two classifications of general contractors:

  • Major contractors: Contractors authorized to work on commercial and institutional projects
  • Minor contractors: Contractors specializing in single-family homes and small multi-family units

Minor contractors do not require a license but they are required to register with the Connecticut Department of Consumer Protection.

Below is a brief overview of the licensing requirements for major contractors:

  • Complete the license application form
  • Provide proof of general liability insurance
  • Provide three references that can verify your contracting skills
  • Submit documentation for all contracting projects completed within the past five years
  • Pass the business and law exam (if required)
  • Pay the $500 application fee

If you have further questions regarding the licensing process, you can always visit the Department of Consumer Protection contractor application page.