Iowa
Contractor Bonds

Iowa Contractor Bond License Guide

Iowa 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.

Why are contractor bonds required in Iowa?

Multiple counties and cities require contractors in Iowa 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 (government entities requiring the bond) enforce the legal language on the bond form that places 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.

Out of State Contractor Tax Bond

Out of state contractors are required to post a $25,000 surety bond for a one-year term the state of Iowa. The applicant’s credit history must be reviewed by a surety underwriter as the cost of the bond is currently underwritten. Contractors must also complete an application and provide documentation of criminal convictions, provide an unemployment insurance number, and provide evidence of a maintained permanent place of business.

Plumbing and Mechanical Systems Bond

Plumbing and mechanical contractors working in the state of Iowa are required to post a $5,000 surety bond. The cost of the bond is currently $75 for a one-year term. A 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront. Along with the surety bond, contractors must become registered by submitting an application and providing documentation of criminal convictions, provide an unemployment insurance number, and provide evidence of a maintained permanent place of business.

Iowa city-specific contractor bonds

Many Iowa contractors are required to post a surety bond with the city or county they work in. More information on city and county-specific requirements can be found below.

City of Bettendorf Contractor Bond

City of Bettendorf contractors must post a $10,000 surety bond for a one-year term. The cost of the bond is currently a $100 premium. A 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront. Along with the surety bond, contractors are required to possess a state contractor’s license to get a permit to work within City of Bettendorf.

Visit SuretyBonds.com or call us at 1 (800) 308-4358 to talk to a representative to get started on securing your Iowa bond today!