What Is an Oklahoma Contractor License Bond?
Oklahoma contractors in many different specialties are required to hold a license to work legally. Before getting licensed, an Oklahoma contractor license bond may also be necessary, depending on the city or county where a contractor plans to work with customers.
The purpose of the Oklahoma contractor license bond is to provide security to the public when working with a contractor. It also ensures that the contractor will perform the obligations of a project in line with state and local laws and building codes.
How Does an Oklahoma Contractor License Bond Work?
An Oklahoma contractor license bond is an agreement between three specific parties: the obligee, the principal, and the surety.
The obligee is the state or local licensing authority that requires a bond to be in place. In this case, the obligee is the Oklahoma Construction Industries Board.
The principal is the licensed contractor who must post a bond.
The surety company provides the bond to the contractor and pays legitimate claims for compensation to customers of the contractor.
Oklahoma Contractor License Bond Obligee Details
Under state law, Oklahoma contractors working in certain fields must have an active license in order to complete projects legally. Part of the licensing requirements include securing an Oklahoma contractor license bond, either on a local or state level.
For local contractor bonds, the obligee is the licensing authority in the city or county where the contractor plans to perform work. On the state level, contractors requiring licensing need a bond with the Oklahoma Construction Industries Board listed as the obligee.
Contact information for the board is as follows:
Oklahoma Construction Industries Board
2401 NW 23rd Street, Suite 2F
Oklahoma City, Oklahoma 73107
Do I Need to Get an Oklahoma Contractor License Bond?
Various city and county departments may require construction contractors to have a valid license and an Oklahoma contractor license bond. On the state level, contractors who work in electrical contracting, mechanical contracting, or plumbing contracting must have a license and a bond in place.
Other contractors may need to complete the licensing process if they work in one of the following categories:
- Fence contractor
- Sidewalk contractor
- Concrete or masonry contractor
- HVAC contractor
How Do I Get an Oklahoma Contractor License Bond?
Meeting the bonding requirements as a contractor in the state begins with submitting an application for your Oklahoma contractor license bond. This simple process involves the surety company reviewing your credit score and business details and providing a fast quote for your bond premium.
What Does an Oklahoma Contractor License Bond Cost?
The amount of an Oklahoma contractor license bond which must be in place in order to obtain a contractor license varies between locations. Bonds typically between $1,000 and $10,000 must be posted to comply with local regulations, but this is not the amount you pay for an Oklahoma contractor license bond.
Contractors pay only a small percentage—usually between 1 and 10 percent—of the total bond requirement. This is known as the bond premium, and it is determined by the surety company providing the bond.
Can I Get an Oklahoma Contractor License Bond with Bad Credit?
If you have a low credit score, you pose a higher risk to the surety company, but this does not mean you are disqualified from obtaining a contractor license bond. With bad credit, you can still get a surety bond, but you will likely pay a higher premium for your bond.
Oklahoma Contractor License Bond Renewal and Expiration Date
Contractors who are required to hold a license under state law must also have a continuous Oklahoma contractor license bond. There is no set expiration or renewal date, but periodically a bond may need to be renewed or continued to ensure the contractor is still in compliance with current regulations.
On a local level, there is no set expiration date or renewal term, but bonds may be renewed at one-, two-, or three-year intervals. The surety company providing an Oklahoma contractor license bond sends renewal information prior to the expiration date.