West Virginia Contractor Bond License Guide
West Virginia 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 West Virginia?
Contractors in West Virginia are required 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 (West Virginia 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.
Nonresident Contractors Consumers Sales and Service Tax and Use Tax Bond
Nonresident contractors in West Virginia must post a surety bond ranging from $1,000 to $50,000, depending on the contract’s gross value, amount of taxable component, and the timeliness and compliance of the taxpayer’s past payments. For a one-year term, the cost of this bond is currently being underwritten, meaning the applicant’s credit history must be reviewed by a surety underwriter.
Along with their surety bond, contractors must register with the West Virginia State Tax Department. Applicants must complete and submit a West Virginia New Business Registration Application with a $30 fee. They must also submit an itemized list of equipment brought into West Virginia that the contractors will be using within their business.
Wage Payment Collection Bond
Construction employers hiring union contractors are required by the West Virginia Division of Labor to post a wage payment collection surety bond. This ensures the employers pay the contractors their wages and fringe benefits, required by the Wage Payment and Collection Act. The bond amount will be equal to the employer’s gross payroll for four weeks and will change as the employer’s does. However, it will not decrease without being approved by the Commissioner. This amount will range from $1,000 to $100,000 and should be verified by the state before being bonded.
There are companies that can be exempt from having to acquire a wage payment collection bond. These businesses will have to submit a Wage Bond Status Affidavit and qualify for one of the following:
In business in West Virginia, with employees, for at least one year
In business in a different state for at least five years
Does not have employees physically working in West Virginia
Only in construction of single-family residences and/or family farming
Has $100,000 or more reported available assets
A subsidiary of a parent company that has been in business for at least five years
Visit SuretyBonds.com or call us at 1 (800) 308-4358 to talk to a representative to get started on securing your West Virginia bond today!
Search all contractor bonds in West Virginia
Over the years, our bonding experts have put together the most comprehensive surety bond library. Most of our contractor bonds can be purchased instantly online in only a few minutes.
Use the list on the right below to browse all of our available contractor bonds in West Virginia You can also try searching by bond amount, obligee, or bond name.