Nebraska Contractor License Bonds

Get Your Nebraska Contractor Bond

Who Is Required To Purchase a Nebraska Contractor License Bond?

City of Omaha Contractor License Bonds

The city of Omaha requires a license bond for nearly every contractor license they issue. Here's the full list of which licenses require a bond and the bond amount.

These are all minimum bond amounts. In most cases, the only time your bond amount will increase would be if you have a history of complaints or past claims on previous bonds.

City of Lincoln Contractor License Bonds

Lincoln, NE only requires sign, street use, and excavation contractors to be bonded when they get licensed. This license bond has an amount of $5,000.

• Sign, street use, excavation contractors - $5,000

Lincoln does require right of way bonds for projects that are performed on or interfere with city/public property.

Right of way bonds don't have a set amount. They are typically based on the project and the amount will be told to you by the city of Omaha when you apply for the required permits.

City of Gering Contractor License Bonds

The city of Gering has a $2,000 bond amount to get licensed as a contractor. Similar to the Omaha requirement, this is a minimum bond amount.

Right of Way Construction Bonds

I wanted to mention right of way bonds one more time.

Most cities across the country require a bond when commissioning a contractor for city projects or when a private project demolitions public property.

If you're working on public property, it's likely you'll need to purchase a right of way bond, regardless of the city you're completing the project in.

Even though we only mentioned a handful of cities in Nebraska, we can help you get bonded for your project. Fill out our quote form and tell us about your project or license. If you prefer, you can call a bond specialist at 1-800-608-9950.

Why is a Nebraska Contractor Bond Required?

Contractors are required to get licensed to legally take on and complete work in Nebraska. The purpose of this licensing process is to qualify individuals and companies ensuring they meet:

• A minimum level of experience
• The necessary level of education
• The proper business records are submitted
• An appropriate license type for the projects they want to bid on

These licensing agencies and departments exist to protect the public from unlawful contractors. They want contractors who provide a good service and make their local communities a better place to live. Plus customers want to know they're protected if a contractor defrauds them.

The surety bond requirement is the primary way local municipalities can hold contractors accountable to the promises they make to their customers.

The bond is for your customers' protection.

What Does a Nebraska Contractor License Bond Protect Against?

Contractor bonds (regardless of license type) serve the same purpose of making sure projects are completed according to:

• Municipal building codes
• The contract outlined with your customer

It's unfortunate, but every year there will be a handful of contractors who purposefully:

• Break the terms of a construction project
• Take deposits or down payments and never starting or completing a project
• Replace agreed upon materials with cheaper alternatives to increase profits
• Fail to pay subcontractors for completed work
• Neglect building codes and purposefully performing poor quality work

If a customer is victim to these actions or similar, they can make a claim against the contractor surety bond for financial compensation. However, the bond amount discussed above is the limit available to customers.

How Much Does a Nebraska Contractor Bond Cost?

At a high level the cost of a contractor bond is based on a rate quoted from a surety.

A surety is an insurance company that underwrites the surety bond. And every surety will conduct their own internal assessment of the applicant using these primary factors:

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

Based on this assessment, the surety will quote a rate.

This is why working with a specialized surety agency like Surety Bonds Direct can help you save money and make the bonding process faster.

For most municipal bonds, we have secured the lowest possible price of $100.

All other municipal bonds with an amount less than $25,000 start at $100.

City of Omaha - Contractor License Bonds

Other Municipal Bonds

You can purchase your bond today and have it issued within 24 hours.

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, notarized seals, and the required power of attorney.

The city of Omaha allows us to email the bond to you. This speeds the process up.

However, the city of Lincoln requires the original bond with raised seals. This means we have to mail the original bond to you.

Either way, once you know the bond you're required to purchase, purchase it.

Don't put the bonding requirement off to the last second. You don't want your license delayed because of the bonding requirement.

Determining the Contractor Bond Term and Renewal

• Bond Term - the length of time the bond is active
• Effective date - the date, you choose when purchasing your bond, that signifies your bond active date
• Expiration date - the date your bond must be renewed by to remain active
• Renewal premium - The premium (payment) required to keep your bond active

Most local bonds tend to expire at the end of the year on December 31st.

Many contractor license bonds have a term of 12 months from the effective date.

Regardless of your bond's expiration date, it will have to be renewed.

Renewing Your Bond

Your Surety Bonds Direct 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 is activated for the next term.

If your bond is a right of way bond, it will only require renewal if the project extends beyond the bonds expiration date.

If the project concludes before the bond's expiration date, you can let the bond expire.

Contractor Bonds And Getting Your Nebraska Business License/Registration

Here are some links to help you get licensed in Omaha, Lincoln, and Gering:

• City of Omaha contractor licensing
• City of Lincoln contractor licensing
• City of Gering contractor licensing forms