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North Carolina Contractor License Bond

A contractor license bond is an essential part of the licensing process for contractors seeking licensure in North Carolina. The contractor license bond is an agreement between the contractor, the surety, and the North Carolina Licensing Board for General Contractors. Consumers are protected by the bond requirement, but contractor license bonds also boost consumer confidence in contractors.

The contractor license bond is a sort of financial backup for the state, ensuring that any licensed contractor doing business in the state will conduct themselves ethically and comply with applicable regulations and laws. The public benefits just as much from the guarantee of contractor license bonds. They know that when they hire a licensed, bonded contractor the work will be finished in an acceptable manner. Should problems arise with the work, the public knows that licensed contractors are motivated to resolve them.

What Is a Contractor License Bond and What Does It Cover?

An NC contractor license bond is a type of monetary guarantee that any licensed contractor will follow all standards and regulations and conduct their business and complete jobs in a manner that's acceptable. If a contractor fails in this, either by not completing a job or performing a job below acceptable standards, customers can claim against the bond.

Licensed contractors avoid claims; it's just good business. That's because claims can eventually lead to a bond being canceled. Since a contractor license bond is necessary for doing business, the contractor will have to find a bond with a different surety—and prior claims history can come with much higher costs. It's always best to resolve disputes over jobs performed before they lead to claims on the bond.

Although contractor license bonds are required to protect consumers, these surety bonds are also very useful for the licensed contractors that carry them. Consumers have more confidence in licensed, bonded contractors known for performing quality work.

Who Needs a North Carolina Contractor License Bond?

Anyone who needs a contractor license to work legally will also need a contractor license bond. The question of who needs a contractor license is a little more tricky. It depends on the type of work the contractor will perform, where, and to what extent. For general contractors, anyone who intends to do more than $30,000 worth of work in a 12-month period needs to secure a license, which comes with a surety bond requirement.

If you're unsure whether you need a license, contact state representatives or local experts. And if you have any questions or issues regarding North Carolina contractor license bonds, please contact Viking Bond Service for good information.

How to Get a Contractor License Bond in North Carolina

Contractors must purchase North Carolina contractor license bonds and show proof of the bond to the North Carolina Licensing Board for General Contractors to be licensed. These commonly used bonds can be bought from a North Carolina licensed surety bonding company. Any licensed contractor must continue to pay premiums and keep the bond current as long as the license remains active.

The amount required for a given NC contractor license bond varies depending on the city the work will happen in and the type of construction work being done. Contractor license bond amounts in North Carolina range from $2,000 up to $130,000. For contractor license bonds that are individually underwritten, a surety underwriter will take just enough time to review an applicant's qualifications.

In North Carolina, landscape contractors and irrigation contractors are licensed by the state, instead of municipalities or counties—but sureties licensed to issue bonds in North Carolina will be able to provide these contractors with bonds, too.

The Cost of North Carolina Contractor License Bonds

When determining how much the North Carolina contractor license bond will cost, surety companies consider several factors. In some cities, the bond is not subject to underwriting and can be issued with the payment of premium. In other cities, the surety will underwrite the bond request.

For those North Carolina contractor license bonds that rely on credit, good credit can prompt lower quotes, but any applicants, including those with credit challenges, can apply and receive quotes. As credit improves year over year, the bond can be re-underwritten for lower premiums.

The typical surety bond cost for a North Carolina contractor license bond is based on credit, contractor history, and the bond amount. Quotes for these bonds typically range from 2% through 5% of the required bond amount. Quotes can come in outside this range, both on the high end and low end, depending on credit and other underwriting factors.

Can You Get a North Carolina Contractor License Bond With Bad Credit?

Bonding issues due to credit can put a hold on someone's entire career. After all, you can't work legally as a contractor without a license, and you can't get a license without a bond. Likewise, being denied a surety bond in North Carolina can make it impossible to utilize your skills and keep a job – it's a major problem.

Viking Bond Service understands that credit issues unfairly keep some people from getting the surety bonds they need. In response, we created a bad credit surety bond program specifically for people with a low credit score or a red flag on their financial record (bankruptcy, etc.). The program does not guarantee someone will receive a bond quote, but it does mean they won't be denied automatically.

Instead, our team will use our extensive connections and resources to scout for any and all bond offers available. Our pledge is to help more contractors in North Carolina secure the bonds they need to get their business on track regardless of their credit.

Do You Need to Renew a North Carolina Contractor License Bond?

Yes, you do. The surety bond must be active and in good standing for as long as you perform work as a licensed contractor. Any lapse in bond coverage makes a license invalid, making any further work you perform illegal and subject to strict penalties.

Contractor surety bonds remain active for 12 months. Your surety agency will send you regular renewal notices as the deadline approaches. When you are ready to activate the bond for another year, you will need to submit to a new credit check and provide updated information about your business. Underwriters will use this information to evaluate how your credit risk has changed, then adjust the premium price accordingly. That means you could pay less or more than before.

North Carolina Contractor License Bonds by Viking Bond Service

At Viking Bond Service, we've worked hard over the years to secure and maintain our reputation as a reliable North Carolina contractor license bond surety. Our contractor clients and others in North Carolinians have trusted our team for more than a decade to provide the surety bonds they need at competitive pricing. Our bond agents can help you through the North Carolina contractor license bonding process, without any headaches or delay. Call us today or use our online application to get started.

Request a Contractor License Bond Quote:

Don't wait to get your bond. Request a quote from Viking Bond Service at any time, and you can expect to receive an offer in under 24 hours. To ask our team of bond experts questions or get assistance with any part of the process, don't hesitate to contact us or call 1-888-2-SURETY (1-888-278-7389).