Vermont Contractor License Bond

A Contractor License Bond in Vermont costs as little as $100. While a Vermont contractor bond typically must be in the amount of $1,000 - $100,000, you only pay 1% - 10% of that sum. 

• Total Bond Amount: The bond amount (penal sum) that you need is determined by your obligee—the entity requiring you to get bonded. State licensing for contractors does not have a bonding requirement. However, the Vermont Agency of Transportation requires all right-of-way contractors to hold a $1,000 - $100,000 bond. Most other contractor bonds are set at a municipal or city level.
• Bond Premium: Typically, your bond premium (how much your bond costs) is 1% - 10% of your total bond amount. Your credit score mainly determines your rate. However, your past bonding history, industry experience, and business financials may also be considered in certain situations.

1. Know Your Bond Amount 

Vermont requires performance bonds for public construction projects over $100,000. Additionally, the Vermont Agency of Transportation requires right-of-way contractors to hold a bond.

Amounts for these bonds vary depending on project scope. To find your bond amount:

• Look on the website of the organization or municipality licensing you. Many have this information on their licensing pages, but you can also contact them directly if you can't find it. 
• Contact 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 a bond application. This online form only takes a few minutes to complete and generates a quote within minutes. 

Information you will need on hand includes:

• Bond Name 
• Bond Amount 
• Contact Information

3. Receive a Bond Quote

You will receive a quote in your inbox a few minutes after submitting your application. Please check your Spam Folder. Please note: when the bond amount is large, the quote may take a bit more time. 

4. Pay Your Bond

Go to our website to sign the bond agreement and pay your invoice. An electronic copy of your bond will be sent to your email as soon as payment clears. This copy is printable. If you need the original bond, it will be sent via mail.

Right-of-way performance contractors, contractors working on public construction projects, and contractors working in certain VT cities need a Vermont contractor license bond. While the state of Vermont licenses electricians and plumbers, that application has no bonding requirement. 

• The Vermont Agency of Transportation requires right-of-way contractors to secure a labor and materials bond and a compliance bond. Both surety bonds must be in an amount equal to the project contract (19 V.S.A. § 10). These bonds are in place to ensure that the contractor pays their suppliers and complies with the laws and ethics surrounding the contracting work they're taking on. 

Vermont contractors may also have to post a performance bond when working in certain areas. For example, Burlington contractors taking on work over $6,000 must post a bond that equals the entire project cost.

General contractors working in Vermont do not need a bond unless the type of work they are doing or the area they are working in requires it. 

• We had a recent inquiry from someone looking to get a Vermont contractor bond to protect his new construction company. Our bond expert explained that a surety bond doesn't protect the contractor or his business. Instead, the bond reimburses a project owner's financial losses in a case where contractor misconduct causes damage. 

You only need a Vermont contractor license if you are a specialty contractor, such as a plumber or electrician. To get this license, you need:

• Work experience – the number of hours needed varies depending on the designation you're applying for (Journeyman, Master, etc.).
• A signed affidavit or proof of experience.
• A complete license application with your license fee attached. 
• A surety bond – if working in certain Vermont jurisdictions.