How Much Does a Contractor License Bond Cost in Pennsylvania?
Pennsylvania Contractor License Bond premiums start at $100. The cost of this bond is a small percentage (generally 1% - 10%) of the total bond amount needed. For example, a $10,000 Contractor License Bond costs $100 - $1,000.
Two main factors that determine this surety bond's cost:
- Penal Sum – This is the full amount that your bond must be in. As Pennsylvania has no statewide contractor license bond requirement, municipalities set their own bond amounts. These typically range from $5,000 - $100,000.
- Credit Score – This determines the percentage of the bond that you must pay. Credit score is the main factor used to determine an individual's bond premium. However, industry experience, past bonding history, and business assets may also be considered.
Surety Bond Cost Based on Credit Score |
||||
Surety Bond |
Surety Bond Amount |
Over 700 |
Between 600 – 699 |
Below 599 |
City of York Curb & Sidewalk Contractor Bond |
$5,000 |
$100 -$150 |
$150 - $250 |
$250 - $500 |
Township of Salem Contractor Bond |
$10,000 |
$100 - $300 |
$300 - $500 |
$500 - $1,000 |
City of Philadelphia Class A Demolition Contractor Bond |
$50,000 |
$1,000 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
A bond typically remains active for 1 – 2 years before you must renew it. At the time of renewal, you will once again need to pay your bond premium. However, if your financial situation changes, so may your bond premium.
For example, our contractor client, Terry, recently renewed his license bond with us. Due to paying down his debt over the past year, we were able to offer him a rate that was 2% lower than his last. On his $50,000 bond, this saved him $1,000.
How to Obtain a Contractor License Bond in Pennsylvania
1. Know Your Bond Amount
There is no set contractor license bond amount in Pennsylvania. Instead, the municipality issuing the contracting license determines the bond amount.
To find your bond amount:
- Check the instructions on your contractor application.
- Look on the website of the municipality or city licensing you. Many have this information on their licensing pages, but you can also contact them directly if you can't find it.
- Talk to one of our surety experts. We are always happy to help you determine the bond amount you need and answer general bonding questions.
2. Apply For Your Contractor Bond
Fill out an online application. This online form only takes a few minutes to complete and generates a quote within minutes. Plus, the soft credit check it runs won't affect your credit score.
Information you will need on hand includes:
- Bond Name
- Bond Amount
- Contact Information
3. Get a Bond Quote
A quote will be sent directly to your inbox. It usually only takes a few minutes to arrive after you submit your application. Please check your Spam Folder.
4. Pay Your Bond
Log into our website to sign the indemnity agreement and pay your invoice. An electronic copy of your bond will be sent to your email as soon as payment clears. The original copy will be sent via mail. While some licensing applications will accept a copy of your bond, many require the original bond.
Who Needs a Pennsylvania Contractor License Bond?
Contractors applying for certain contractor licenses in Pennsylvania need a contractor license bond. While not all contractor licensing applications in the state have a bonding requirement, many do.
- This bond is in place to ensure that contractors perform work ethically and lawfully. If they fail to do so, the affected parties are financially compensated by the bond. See What is a Surety Bond? for more information.
If a contractor works in more than one PA municipality or does specific work (sewer, street, etc.), they may need multiple bonds.
Surety Bond |
Penal Sum |
Cost |
$15,000 |
From $150 |
|
Capital Region Water Bond |
$1,000 - $100,000 |
From $100 |
$10,000 |
From $100 |
|
$100,000 |
From $1,000 |
|
$5,000 |
From $100 |
|
$5,000 |
From $100 |
|
$10,000 |
From $100 |
|
$1,000 - $10,000 |
From $100 |
|
$1,000 |
From $100 |
|
North Huntington Grading, Excavation and Filling Contractor Bond |
$20,000 - $50,000 |
From $100 |
$50,000 |
From $500 |
|
$10,000 |
From $100 |
|
$100,000 |
From $1,000 |
|
$1,000 |
From $100 |
|
City of Philadelphia Payment Bond |
$1,000 - $100,000 |
From $100 |
City of Pittsburgh Street Opening Bond (street opening in asphalt streets) |
$10,000 |
From $100 |
City of Pittsburgh Street Opening Bond (street opening in concrete streets) |
$20,000 |
From $200 |
City of Pittsburgh Street Opening Bond (blanket bond) |
$75,000 |
From $750 |
$10,000 |
From $100 |
|
$15,000 |
From $150 |
|
$10,000 |
From $100 |
|
$4,500 |
From $100 |
|
$5,000 |
From $100 |
|
Wyoming Valley Sanitary Authority Sewer Installation Bond |
$1,000 - $100,000 |
From $100 |
$5,000 |
From $100 |
Getting a Pennsylvania Contractor License
The requirements to get a Pennsylvania contractor license vary depending on which municipality you are applying to. However, they generally all have similar steps. These include:
- Registration as a Home Improvement Contractor (if applicable)
- A completed application
- Proof of work experience and/or education
- A Contractor Bond
- Contractor's Insurance
- Payment of licensing fees
Ready to Get Started?
Get a real-time quote today. You’ll be bonded in minutes, not days!