Delaware
Contractor Bonds

Delaware Contractor Bond License Guide

Delaware requires contractors to obtain a contractor bond to become licensed. The amount for these bonds varies depending on the type of contractor, location, and project. Some of these bonds can be issued instantly online for a set premium or are prorated for the bond term’s end date. Other Delaware contractor bonds require underwriting consideration; the bond amount could be higher due to the industry’s claims history. Underwriters must review the applicant’s financial and credit information before determining at what price the bond can be issued.

Why are contractor bonds required in Delaware?

Contractors in Delaware are required by multiple towns, counties, and cities to post surety bonds prior to starting work. These bonds ensure the principal (contractor) will abide by all applicable rules and legislation outlining the classification-specific work, in addition to protecting consumers from damages caused by negligent or faulty work. Obligees (Delaware government entities requiring the bond) place the liability on the principal.

Affected contractors can file a claim against the surety bond; if found to have validity, the surety (the company that financially backs the bond) will pay the claim up to the bond’s full amount. However, the principal is required to reimburse the surety in full for any money paid out.

Delaware state non-resident contractor license bond requirement

Non-residents are required to complete a state business license application with the Delaware Division of Revenue. Delaware also requires non-resident contractors to post a contractor bond ranging in an amount from $100 to $100,000. The cost of this bond depends on a surety underwriter’s review of the applicant’s credit history, and it is issued for a one-year term.

Delaware city-specific contractor bonds

In-state residents are required to complete a state business license application, submitted to the Delaware Division of Revenue. After completion, residents must conform to the zoning requirements and post a surety bond with the city, county, or town they are working in. More information on specific cities can be found below.

City of New Castle Contractor License Bond

Contractor license bonds are required in the City of New Castle, Delaware. Bond amounts will vary by the type of contractor and cost of construction, but bonds can be purchased for a one-year term.

• Decorative Appliance Contractor Bond

  • Bond amount: $10,000

  • Applicants are required to purchase the $100 premium; however, the cost may be prorated to match the time remaining until the bond’s end date.

• Class B Building Contractor Bond

  • Bond amount: $50,000

    • The cost for this bond depends on underwriting consideration; an applicant’s credit and financial history must be examined by a surety underwriter.

• Class C Building Contractor Bond

  • Bond amount: $25,000

    • Applicants are required to buy a $250 premium, but this can be prorated.

• Class U Building Contractor Bond

  • Bond amount: $200,000

    • The cost of this bond is currently underwritten; the applicant’s credit history must be reviewed by a surety underwriter to determine the cost.

• HVACR Contractor Bond

  • Bond amount: $25,000

    • Applicants are required to buy a $250 premium, unless they request it to be prorated to match the cost of the time remaining before the bond’s end date.

• Master Plumber Contractor Bond

  • Bond amount: $10,000

    • Applicants are required to purchase a $100 premium or have it prorated to only pay for the time remaining before the bond’s end date.

• Outside Utility Contractor Bond

  • Bond amount: $50,000

    • Applicants will have their credit and financial history checked by a surety underwriter to determine the cost of this bond.

City of Newark Contractor License Bond

Delaware contractor license bonds are required in the City of Newark. Bond amounts will vary by the type of contractor and cost of construction.

• Minor Renovation Contractor

  • Cost of construction: $1 to $24,999.99

    • Applicants must post a $10,000 contractor bond with a cost of $100 for a one-year term.

• Minor Renovation Contractor

  • Cost of construction: $25,000 to $75,000

    • Applicants must post a $25,000 contractor bond with a cost of $125 for a one-year term.

• General Contractor

  • Cost of construction: $1 to $99,999

    • Applicants must post a $50,000 contractor bond. The cost for this bond depends on underwriting consideration, where an applicant’s credit and financial history must be examined by a surety underwriter. The purchase of this bond includes a one-year term.

• Limited Subcontractor

  • Cost of construction: Less than $1,000,000

    • Applicants must post a $50,000 contractor bond. The cost is currently underwritten, meaning the applicant’s credit history must be checked by a surety underwriter to determine the cost. The applicant will hold this bond for a one-year term after its purchase.

• General Contractor

  • Cost of construction: $100,000 to $249,999

    • Applicants must post a $75,000 contractor bond. Applicants will have their credit and financial history checked by a surety underwriter to determine the cost. This purchase includes a one-year term on the bond.

• General Contractor

  • Cost of construction: $250,000 to $499,999

    • Applicants must post a $100,000 contractor bond. The cost for this bond depends on underwriting consideration of a surety underwriter, meaning an applicant’s credit and financial history must be examined.

• Limited General Contractor

  • Cost of construction: $500,000 to $999,999

    • Applicants must post a $150,000 contractor bond. The cost for this bond is currently underwritten; the applicant’s credit history must be checked by a surety underwriter to determine the cost. Upon purchase, this bond will be active for a one-year term.

• Unlimited General Contractor or Unlimited Subcontractor

  • Cost of construction: More than $1,000,000

    • Applicants must post a $200,000 contractor bond. Applicants will have their credit and financial history checked by a surety underwriter to determine the cost. A one-year term will be applied to this bond after its purchase.

City of Wilmington Contractor Bond

Contractors in the City of Wilmington, Delaware must post a contractor license bond amount between $1,000 and $25,000. This bond can be purchased instantly online for a one-year term. The cost will vary, depending on the bond amount. Save time and money by purchasing your bond for multiple years upfront with a multi-year discount.

Specific City of Wilmington contractor bonds may have additional or different requirements.

• Wilmington HVAC Contractor Bonds

  • The Delaware City of Wilmington requires HVAC contractors to post a $3,000 contractor bond. Purchase this bond for $100 instantly without a credit check for a one-year term! Save time and money by purchasing your bond for multiple years upfront with a 25% multi-year discount.

• Wilmington Plumbing Contractor Bonds

  • Plumbing contractors in Wilmington, Delaware, must post a $3,000 contractor bond. Purchase this bond instantly online for a one-year term for a $100 premium. This amount can be prorated to match the time remaining before the bond term’s end date.