Montana
Contractor Bonds

Montana Contractor Bond License Guide

Montana 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 Montana?

Multiple counties and cities require contractors in Montana 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.

Water Well Contractor’s

Water Well contractors are required by the state of Montana to post a surety bond. The cost of the bond is currently $4,000 for a one-year term, expiring on June 30. The cost may be prorated to match the time remaining until the bond’s expiration. Along with the surety bond, contractors must also submit an application with additional requirements to become licensed to work within the state:

• At least one year of apprenticeship

• Passing score of 80 percent on the water well examination

Montana city-specific contractor bonds

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

City of Billings Sewer Contractor Bond

The City of Billings contractors must post a $10,000 bond for a $100 premium with a one-year term. Along with the surety bond, applicants are required to submit a contractor registration form and the following requirements:

• City of Billings Business License

• Certificate of Worker’s Compensation

• DUNS number and proof of SAM registration

City of Whitefish Sidewalk and Excavation Contractor Bond

City of Whitefish sidewalk and excavation contractors must post a $5,000 bond with a $100 premium for a one-year term. For an upfront purchase of multiple years, an additional 25% off can be added to the purchase. To be able to work in the city, contractors must submit a permit application to the Planning & Building Department.

Missoula Contractor Bond

Contractors in Missoula, Montana must post a surety bond varying in amount depending on the type of work. Contractors must also submit an application (obtained by calling the State of Montana Dept. of Labor & Industry at (406) 444-1446) along with the following requirements:

• Surety Bond

  • Gas Fitter Contractor

    • $3,000 bond amount

    • $100 premium

  • Sidewalk, Curb, Paving Contractor

    • $10,000 bond amount

    • $100 premium

    • An additional 25% off can be added for purchasing multiple terms upfront

  • Excavation Contractor

    • $20,000 bond amount

    • $200 premium

    • An additional 25% off can be added for purchasing multiple terms upfront

• Certificate of Insurance

  • Minimum $300,000 general liability

• Worker’s Compensation Insurance

• Police Background Check

  • $55 fee

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