Contractor bond cost
Various cities and contractor classifications in Michigan require contractors to post surety bonds prior to commencing work. Applicants should verify their required bond amount with the city and/or government entity in charge of licensing and registration for their classification prior to bonding.
Many Michigan contractor bonds can be issued instantly without a credit check, while others are subject to underwriting consideration.
Why this bond
Contractor bonds in Michigan are put in place to ensure that principals (contractors) complete construction work in accordance with the laws of the city/state. This includes adhering to all building codes, paying all taxes that become due and more. Typically, these bonds protect the city/state and/or any individual who is harmed as a result of the principal’s noncompliance from financial loss up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.
All Michigan contractor bonds have unique terms, so applicants should be sure they understand the fine print of their surety bond contracts during the bonding and licensing processes.
Apply for your surety bond
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