How much does a contractor bond cost in Oklahoma?
Various cities, counties, and local authorities throughout the State of Oklahoma require contractors to post surety bonds. Below are the bond amounts for popular contractor bonds:
- Plumbing Contractor License Bond: $5,000
- Electrical Contractor License Bond: $5,000
- Mechanical Contractor License Bond: $5,000
- Enid Contractor Bond: $10,000
- Oklahoma City Sign Contractor Bond: $5,000
- Tulsa Sidewalk/Driveway Contractor Bond: $5,000
- Out of State Contractor Bond: Varies
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 Oklahoma 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 Oklahoma?
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 Oklahoma?
The Oklahoma Department of Commerce states that contractors performing construction work on commercial or residential buildings, roads, bridges, and highways are not required to be licensed by the state.
Only electricians, plumbers, and mechanical contractors are required by the Oklahoma Construction Industries Board to be licensed at the state level.
You’ll need to check with your local municipality for any additional licensing requirements for general contractors.