Construction contractor bond cost
The Alaska Department of Commerce, Community and Economic Development’s Division of Corporations and Business and Professional Licensing recently updated its licensing requirements for construction contractors. The following bond amount increases became effective January 1, 2015:
- general contractors must post $25,000 bonds
- general residential contractors must post $20,000 bonds
- mechanical contractors, specialty contractors and home inspectors must post $10,000 bonds
- contractors whose work on one project with an aggregate contract price of $10,000 or less must post $5,000 bonds
These bonds are subject to underwriting, so the amount you’ll pay for your bond depends on your required bond amount as well as on a review of your personal credit report. Bad credit? Don’t worry! Our experts have a history of helping 99% of applicants get approved for the bonds they need quickly and easily.
Who this bond
Effective January 1, 2015, surety bond requirements increase for the following professionals:
- general contractors
- general contractors with residential contractor endorsements
- mechanical contractors
- specialty contractors
- home inspectors
- contractors whose work on one project with an aggregate contract price of $10,000 or less
When do these changes go into effect
The new requirements went into effect on January 1, 2015.Our experts are standing by ready to assist you with all of your bonding needs. Connect with us now submitting a bond request! We’ll get you a free surety bond quote within 1 business day of applying.
Why this bond
Construction contractor bonds in Alaska are put in place to ensure that principals (contractors) comply with all rules and regulations of AS 08.18, including paying all taxes and contributions due to the state and political subdivisions of the state and paying all persons who provide labor/materials/equipment to the principal.
If a contractor performs negligent or improper work or fails to adhere to the letter of the law and the terms of the surety contract, the bond protects the state from resulting financial losses up to the full amount of the bond.You’ll receive a free, personalized quote on an Alaska construction contractor bond within 1 business day of applying when you work with our experts!
Contractor license bond details
Alaska construction contractor bonds are continuous until terminated or otherwise revoked by the Department of Commerce, Community, and Economic Development. The surety can cancel the bond by giving written notice of cancellation to the department. Cancellation becomes effective 30 days after the surety sends the notice.
Become a construction contractor
It is illegal to act as a construction contractor in Alaska without being licensed to do so. The following fees and documents must be submitted to the department when applying for licensure:
- completed, signed and notarized application form
- proof of liability insurance
- proof of worker’s compensation policy
- $65 application fee
- $235 license fee
- residential endorsement
- specialty trades list
- business license from the Professional Licensing Services
- and more
Take the first step toward becoming licensed in Alaska by purchasing the surety bond you need!
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- Surety Bond Insider Alaska updates surety bond requirements for construction contractors
- State of Alaska Construction Contractor Application Packet and bond form
- State of Alaska Department of Commerce, Community and Economic Development Division of Corporations, Business and Professional Licensing Regulation of Construction Contractors