North Carolina
Contractor Bonds

North Carolina Contractor Bond License Guide

North Carolina 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 North Carolina?

Multiple counties and cities require contractors in North Carolina 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.

Electrical Contractor Statement of Bonding Ability

North Carolina electrical contractors must post a one-year term surety bond to become licensed to work in the state. The premium cost of the bond is dependent on the bond’s type and amount. Electrical contractors must submit different requirements based on their bond type (Intermediate and Unlimited) to acquire their license:

• Surety Bond

  • $50,000 bond amount (Intermediate)

    • $100 premium

  • $60,000 bond amount (Intermediate)

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

  • $150,001 bond amount (Unlimited)

    • $300 premium

• At least one qualified individual employed under the applicant

• Passed a State Board of Examiners qualified examination

• Electrical contractor license application, including statement of ownership and names & positions of employees that are qualified

• Written agreement to the State Board of Examiners about adding or losing employed qualified individuals within five days

• Criminal Background Check

• $140 license fee (Intermediate)

• $200 license fee (Unlimited)

Irrigation Contractor

North Carolina irrigation contractors must post a $10,000 surety bond for a one-year term to become licensed to work. The cost of the bond is a $100 premium; however, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront. To become registered as a North Carolina irrigation contractor, applicants must submit the following requirements along with their application:

• References form listing qualified individuals

• Criminal Background Check

• Two years of related education

• Three years of listed experience

• $100 application fee

• Applicants can choose to obtain their permit through reciprocity of having the license in another verified state or county OR a passing grade of the Irrigation Licensing Exam

Landscape Contractor

North Carolina landscape contractors must post a $10,000 surety bond for a one-year term to become licensed to work in the state. The cost of the bond is a $100 premium; however, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront. To become registered as a North Carolina landscape contractor, applicants must submit the following requirements, along with their application:

• Proof of business identification

• Five reference letters (three personal, two professional)

• Pass a licensing exam

North Carolina city-specific contractor bonds

North Carolina contractors must post a surety bond with the city they are working in. More information on city and county-specific bond requirements can be found below.

City of Greensboro Contractor Bond

To become licensed in the City of Greensboro, a surety bond is required of contractors. Purchase your contractor bond instantly online for a one-year term for 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, applicants must submit an application for their contracting specialty.

• Electrical, Plumbing, Mechanical, Refrigeration, HVAC, Concrete

  • $2,000 bond amount

• Demolition, Grading, House Moving

  • $5,000 bond amount

Electrical contractors are also required to apply for, take, and pass an examination to obtain a journeyman card to work within the city. To qualify for the exam, applicants must have documented at least 8,000 hours or four years of electrical experience

City of Winston-Salem Contractor Bond

The City of Winston-Salem requires contractors to post a surety bond to obtain a license to work. The price of this bond ranges from $2,500 to $25,000 depending on the type for a one-year term. A 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront.

• Electrical, Heating or Plumbing

  • $10,000 bond amount

  • $100 premium

• Concrete

  • $5,000 bond amount

  • $100 premium

• Street, Bridge, and Sidewalk

  • $25,000 bond amount

  • $250 premium

Contractors can visit the City of Winston-Salem’s BuildIT Online Permitting System where they can obtain their permit to work.

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