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Alaska Contractor License Bond

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What is an Alaska Contractor License Bond?

Throughout Alaska, several different types of contractors are required to meet specific licensing guidelines in order to work legally. Specialty contractors, residential and general contractors, and mechanical contractors all must have a valid license before working with customers. As part of the licensing process, an Alaska contractor license bond may also be a requirement.

An Alaska contractor license bond works as a form of security for both the public and the state. If a contractor fails to meet his or her obligations because of negligent work, or does not pay laborers and suppliers, a claim can be made against the bond. Bond claims can be costly because, even though the surety company providing the bond initially pays compensation to a harmed customer or party, the contractor is required to repay the claim amount.

Who is Required to Get an Alaska Contractor License Bond?

Any individual who falls into one of the following categories must have a valid contractor license and a current Alaska contractor license bond:

  • Mechanical contractors
  • Speciality contractors
  • Handymen
  • Home inspectors
  • Residential contractors
  • General contractors

Alaska Contractor License Bond Obligee Information

In the state of Alaska, nearly all contractors are required to have a valid license before performing any work on a residential or commercial basis. Part of the licensing requirements include an Alaska contractor license bond, enforced by the Department of Commerce, Community, and Economic Development. This department acts as the obligee for Alaska contractor license bonds and the contact information is as follows

Alaska Department of Commerce, Community, and Economic Development

Division of Corporations, Business and Professional Licensing

PO Box 110806

Juneau, Alaska 99811

Phone: 907-465-2550

What Does an Alaska Contractor License Bond Cost?

An Alaska contractor license bond ranges in cost based on a few different factors. First, the bond amount required by the city or county where a contractor works plays a role. Bonds may be as low as $5,000 or as high as $25,000, depending on the type of work a contractor completes for a customer. However, the full bond amount is not how much you pay for an Alaska contractor license bond.

The surety company providing your contractor bond charges a premium, calculated as a percentage of the total bond amount. This premium, which ranges from 1 to 10%, is based on your personal credit score and financial health of your business. If you have a low credit score, you pose a higher risk to the surety company, and therefore, pay a higher percentage as your bond premium.

How Do You Get an Alaska Contractor License Bond?

If you are starting the licensing process as a contractor, you will also need to begin your application for an Alaska contractor license bond. This can be done online in just a few minutes. Once your bond application details are reviewed, you receive a quote for your Alaska contractor license bond and instructions on how to finalize the process.

Expiration Date and Renewal for Alaska Contractor License Bonds

The license renewal term for contractors operating in Alaska is two years, with an expiration date on December 31. General contractor and residential contractor licenses expire on this date in even-numbered years, while mechanical and speciality contractor licenses expire on December 31 of odd-numbered years. An Alaska contractor license bond expires at the same time as a license and must be renewed. Renewal instructions are sent from the surety company in advance of the December 31 bi-annual deadline.


Frequent Questions

How much does a bond cost?

Pricing is a percentage of the contractor license bond amount that’s required of you, which is based on your personal credit. Use our bond pricing tool to to get a quick ballpark estimate.

Can I get bonded with bad credit?

Yes. You can apply and get bonded with bad credit. Our agency is the largest writer of bonds in the county, which allows us to approve contractors for bonds when other agencies cannot.

Are these the same as contract bonds?

No. Contractor license bonds ensure you will abide by the laws of your state, city or municipality when performing contracting work. Contract bonds guarantee public projects will be completed properly and are a separate bond type. You can learn more about contract surety bonds by visiting the contractor bond center.

Do I need a state or local bond?

It depends on who is requiring the bond of you, the local municipality, county or state. Depending on your location, it is possible you may need both a local and state bond, as contractor license bond requirements can vary drastically. You can select your state to see a full list of contractor license bond requirements.


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About JW Surety Bonds
We are a family owned and operated agency established in 2003. We started with just two people, and grew to become the largest volume bond producer in the nation with 50+ employees. Since day one, our team focus has been on providing real-time online quotes, an easy process, and the best in claims defense. Learn more about our company.