Pennsylvania Contractor License Bonds

What you need to know about Pennsylvania Contractor License Bonds

Pennsylvania Contractor License Bonds

How much does a contractor bond cost in Pennsylvania?

Unlike most states, Pennsylvania does not have a state-level contractor license or bond requirement. However, various cities and counties in the Commonwealth of Pennsylvania require specific surety bonds. Below are the required bond amounts for popular municipal bonds:

  • Borough of Chambersburg Electrician’s Bond: $10,000
  • Borough of Chambersburg Plumbers Bond: $1,000
  • City of Philadelphia Ordinance Bond: Varies
  • City of Pittsburgh Street Opening Bond: Varies
  • City of York Curb and Sidewalk License Bond: $5,000
  • Township of Lower Paxton Excavating and Tunneling 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 Pennsylvania contractor license bonds for as low as $100 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 Pennsylvania?

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 Pennsylvania?

Because Pennsylvania contractor licenses are issued at the municipal level rather than the state, you’ll need to check with your local municipality for any licensing requirements. Below are some common requirements for contractor licenses throughout the Commonwealth of Pennsylvania:

  • Completed license application form
  • Proof of general liability insurance
  • Completed background check
  • Proof of Employer Identification Number (EIN)
  • Paid application and license fees
  • Submission of the appropriate surety bond