Quick Facts:

  • Regulating Agency: Mississippi State Board of Contractors (MSBOC)
  • Required Bond Amount: $5,000 (most common at municipal level)
  • Cost Range: $50-$150 annually (depending on credit)
  • Required For: Various contractors at municipal level (not required for state licenses)

What Is a Mississippi Contractor License Bond?

A Mississippi contractor license bond is a financial guarantee that contractors will follow state laws and local building codes when performing work. Unlike some states with a single statewide bond requirement, Mississippi’s bonding requirements depend primarily on local regulations. These bonds protect consumers and authorities by providing compensation if a contractor violates regulations or fails to complete work satisfactorily.

Who Regulates Mississippi Construction Contractor Licensing?

  • The Mississippi State Board of Contractors (MSBOC) regulates commercial and residential contractors for projects above certain cost thresholds (commercial projects over $50,000; residential builds over $50,000; residential remodels or roofing over $10,000)
  • Important: MSBOC does not require a surety bond as part of state licensing
  • Local municipalities (cities and counties) regulate contractor licensing and bonding at the local level
  • Official site: Mississippi State Board of Contractors

What Bond Amount Is Required in Mississippi?

  • No state-level contractor license bond is required by MSBOC
  • $5,000 is the most common bond amount required by municipalities
  • Some larger cities require $10,000 bonds (Tupelo, Meridian, Southaven)
  • A few smaller jurisdictions require only $1,000-$2,500 bonds
  • Specialty bonds (like manufactured housing installer bonds) can be higher ($25,000)

How Much Does a Contractor Bond Cost in Mississippi?

  • Standard cost: $50-$150 annually for a $5,000 bond (approximately 1-3% of bond amount)
  • Factors affecting cost:
    • Credit score and financial history
    • Business experience
    • Claims history
  • Poor credit: May increase rates to 5-10% of bond amount
  • Multi-year discounts: Some sureties offer discounts for purchasing 2-3 year bond terms

Who Needs a Contractor License Bond in Mississippi?

  • Municipal level requirements:
    • General contractors (building contractors)
    • Electrical contractors
    • Plumbing contractors
    • Mechanical/HVAC contractors
    • Roofing contractors (for projects under state thresholds)
    • Sign contractors (in some municipalities)
  • State level specialty contractors:
    • Manufactured housing installers/transporters ($25,000 bond)
    • Pest control operators ($2,500-$10,000 bond)
  • Non-resident contractor tax bonds: Required for out-of-state contractors on projects over $10,000 and in-state contractors on projects over $75,000

What Other Contractor Bonds Are Required in Mississippi?

  • Tax bonds: Required by Mississippi Department of Revenue for certain contractors (non-residential construction)
  • House moving performance bonds: Required by Mississippi Transportation Commission (up to $50,000) for moving structures on state highways
  • Project-specific performance bonds: Often required for public projects (separate from license bonds)

How Does ContractorNerd’s Application Process Work?

  1. Complete our simple online application
  2. Receive an instant quote based on your information
  3. Pay securely online
  4. Receive your bond documentation immediately via email
  5. Submit the bond to your local municipality as part of your license application

How Quickly Can I Purchase a Bond?

Most Mississippi contractor license bonds can be issued instantly or same-day. Our streamlined online process allows contractors to apply, pay, and receive their bond documentation within minutes. For specialty or higher-amount bonds, the process may take 1-2 business days.

Who Files the Bond With the MS Once It Is Purchased?

After purchasing your bond, you (the contractor) are responsible for filing it with the appropriate municipal authority. The bond must be submitted as part of your license application or renewal. ContractorNerd provides you with all necessary documentation, but you must ensure it reaches the correct licensing department. Some municipalities may require the original bond with seal.

How Are Claims Handled on a Mississippi Contractor Bond?

  • Claim process: If a contractor fails to comply with codes or abandons work, the municipality or affected party can file a claim against the bond
  • Investigation: The surety company investigates the claim to determine validity
  • Payment: If valid, the surety pays up to the bond amount to the claimant
  • Reimbursement: The contractor must repay the surety for any claims paid out (bonds are not insurance)
  • Consequences: Claims may affect future bond rates and eligibility

Frequently Asked Questions (FAQ)

Can I get a bond with bad credit?
Yes, contractors with credit challenges can still obtain bonds, though premiums may be higher (typically 5-10% of the bond amount instead of 1-3%). Because most Mississippi municipal bonds are only $5,000, they remain relatively affordable even with credit issues.

What happens if I work without a bond?
Working without a required bond can result in license suspension or revocation, inability to pull permits, fines, and potential legal issues. It may also compromise your ability to collect payment for work performed.

When do I need to renew my bond?
Bonds typically need to be renewed annually, often coinciding with your license renewal. Each municipality may have different expiration dates—many align with the city’s fiscal year or operate on a calendar year.

What’s the difference between a bond and insurance?
A bond protects your customers and the municipality if you fail to follow regulations or complete work. Insurance (like general liability or workers’ comp) protects you and your business against claims of damage, injury, or loss.

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