What Changed for Virginia Contractors?
A new bill was enacted in April of 2017 that allows certain contractors in Virginia to post a surety bond as an option to get licensed.
How Does the New Bond Requirement Work?
The bill named SB 1113 allows Class A and Class B contractors the option of posting a $50,000 license bond, rather than providing financial statements demonstrating a minimum net worth.
- Class A contractors are those who work on a contract worth $120,000+, or who have performed work on contracts with a total value of $750,000+ over a 12-month period. The minimum net worth requirement for Class A contractors is $45,000.
- Class B contractors are those who work on a contract worth $10,000 to $119,999, or have worked on projects with a value totaling $150,000+ (but less than $750,000) over a 12-month period. The minimum net worth requirement for Class B contractors is $15,000.
The new law provides for direct actions on the bond if the contractor fails to pay a judgment that a court issued against him or her for improper or dishonest conduct. The surety’s liability will be limited to the actual monetary loss, court costs, and attorney fees assessed against the contractor. The surety cannot be liable for punitive damages.
Why Choose JW Surety Bonds?
We are the nation’s largest volume bond producer, and provide the lowest rates in the industry. It’s also crucial that you understand that you’re responsible to pay any claims filed on your bond. When you partner with our company, you will have a dedicated claim specialist assigned to your account to ensure claim payouts are either reduced or avoided all together.
Get a Free Quote Instantly Online
If you’re ready to get your Virginia contractor license bond, you can simply apply online.