District of Columbia Contractor License Bonds

Get Your District of Columbia Contractor Bond

Who Is Required To Purchase a Washington DC Contractor Bond?

There are many license classifications in Washington DC, but only the following are required to purchase a surety bond before a license can be issued:

• Home Improvement contractors
• Electrician contractors
• Refrigeration and Air Conditioning contractors
• Elevator contractors
• Plumbing and Gasfitting contractors

Each license classification has its own bonding requirements covered below.

Washington DC has a unique bonding rule where the business entity needs to be bonded and the Designated Individual (or Master) also needs to be bonded.

A Designated Individual is the individual who is responsible for passing the licensing examinations and supervising all work on specific projects.

Additional Bonding Requirements

City projects greater than $100,000 require a series of surety bonds classified as construction surety bonds. These include:

• Bid bonds
• Performance bonds
• Payment bonds

If you're bidding on a city project and in the bonding process, complete our free quote form or call a bond specialist at 1-800-608-9950. We can help you get the process started with pricing so you have the information to win the project.

The Washington DC Contractor Bond Amounts

Here are the bond amounts for each license classification:

These bond amounts are set by the District of Columbia Department of Licensing and Consumer Protection based on analysis of past years complaints against contractors.

The bond amount is the maximum coverage available to customers and subcontractors of a contractor in the event they fall victim to purposeful misconduct or fraud by the contractor.

The price is a small fraction of the bond amount.

Construction Bond Amounts

The bond amounts for City construction projects vary based on the project value.

You will be notified of the detailed bond amounts when you get the project details.

How Much Does a Washington DC Contractor License Bond Cost?

The cost of a contractor license bond is based on a rate quoted by a surety.

A surety is an insurance company that underwrites the surety bond. Every surety conducts their own independent assessment of an applicant. Typically they consider factors such as:

• Personal credit of the owner or owners
• Contracting experience and industry experience
• Any prior bond claims if you've been licensed in the past

If you work with a specialized surety agency like Surety Bonds Direct, you not only pay less, but you won't have to apply with a personal credit check.

Get Low Fixed Pricing With Zero Credit Check

As a surety agency, we work with a network of A-rated sureties who specialize in contractor license bonds.

And for every bond we've secured low fixed prices that require no credit check. This means you can purchase your bond right now and have it issued in less than one business day.

Click in the table below to purchase or if you have any questions, call a bond specialist at 1-800-608-9950.

Why is a District of Columbia Contractor Bond Required?

The District of Columbia Board of Industrial Trades requires all contractors to get licensed before they can legally perform contracting work in the DC area.

This license process establishes a set of standards ensuring contractors have:

• A minimum level of experience
• Obtained the necessary level of education
• The proper business records are submitted
• Ensure the proper insurance policies are purchased and in place

The contractor license bond is the primary tool used by the Board to hold contractors accountable to the promises made and work performed with customers.

What Does a Washington DC Contractor License Bond Protect Against?

A contractor bond is a unique form of insurance. Unlike liability insurance, which you purchase for your protection, a surety bond is purchased for your customers protection.

Unfortunately, there will always be a small number of licensed contractors who purposefully make decisions to increase profits, financially harming their customers.

These fraudulent actions of misconduct include:

• Breaking the terms of a construction project
• Taking deposits or down payments and never starting or completing a project
• Replacing agreed upon materials with cheaper alternatives to increase profits
• Failing to pay subcontractors for completed work
• Failing to follow building codes and purposefully performing poor quality work

If a contractor is found guilty of any of these actions, a claim can be made against the contractor license bond for financial repayment.

Remember the amount of coverage only extends to the bond amount.

What Happens After You Purchase Your Bond?

After you purchase your bond, Surety Bonds Direct's issuing department will prepare your bond with the correct signatures, seals, and the required power of attorney. We guarantee your bond will be accepted by the District of Columbia Board of Industrial Trades or...

• We amend and fix your bond for free
• Give you a full refund

Washington DC allows us to email a copy of your bond to you. This not only makes getting your bond faster, but submitting it easier.

You can expect your bond to be issued in under one business day.

Renewing Your Contractor Bond

Just like each of the licenses, your surety bond has a hard expiration date. It does not matter when you purchase your bond, you will have to renew it on these dates.

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This is another great reason so purchase your surety bond with Surety Bonds Direct.

Your bond specialist will reach out to you 30 to 45 days in advance of your renewal date to make paying the renewal premium easy.

Once you pay the renewal premium, your bond remains active.

This Contractor License Bond is Continuous

A continuous bond means the original bond remains active as long as you pay the renewal premium.

Most of the time, you never have to worry about having a new bond issued or submitting the bond to the District of Columbia Board of Industrial Trades.

If we find you lower pricing during bond renewal, we'll secure you the lower priced bond. In this case you will have to submit the bond to the District of Columbia Board of Industrial Trades so they know you're still actively bonded.

Contractor Bonds And Getting Your District of Columbia Business License/Registration

If you're actively getting licensed right now, read our article outlining the licensing process for Washington DC contractors.

The process is a little different based on the specific type of license you're obtaining.

At a high level the steps are:

1. Have your business structure and ownership in order
2. Pass the required examination
3. Ensure you have the appropriate amount of experience
4. Purchase your contractor license surety bond
5. Pay the appropriate application fees and submit your application

Additional District of Columbia Contractor Bond Resources & Links

Department of Consumer and Regulatory Affairs Get a Home Improvement Contractor License