Quick Facts:

  • Regulating Agency: Local City/County Authorities (No Statewide Requirement)
  • Required Bond Amount: $1,000-$25,000 (varies by location and contractor type)
  • Cost Range: $100-$250 annually (depending on credit)
  • Required For: Various contractor types (varies by city/county)

What Is a Missouri Contractor License Bond?

A contractor license bond is a type of surety bond that a contractor purchases as a guarantee of compliance with laws, building codes, and ethical standards in a given jurisdiction. Unlike insurance (which protects the contractor), a license bond protects customers and the public.

If a bonded contractor violates regulations or fails to fulfill a contract (for example, doing faulty work or not paying subcontractors), the harmed party can make a claim on the bond. The bond’s surety company will pay valid claims up to the bond amount, and the contractor must then repay the surety.

Who Regulates Missouri Construction Contractor Licensing?

Missouri does not have a statewide contractor license bond requirement for general contractors. There is no state-issued general contractor license – licensing and bonding are handled at the city or county level.

Key local regulatory bodies include:

  • City of St. Louis Building Division
  • St. Louis County Department of Public Works
  • Springfield Building Development Services
  • Columbia Community Development Department
  • Other local municipal building departments

What Bond Amount Is Required in Missouri?

Bond amounts vary significantly by location:

  • City of St. Louis: $25,000 for electrical, plumbing, and communications contractors; $1,000 for concrete contractors
  • St. Louis County: $10,000 for electrical and mechanical contractors; $25,000 for master plumbers
  • City of Springfield: $5,000 for licensed contractors
  • City of Columbia: $10,000 for plumbing contractors only
  • City of Joplin: $10,000 for all contractors
  • Jefferson County: $25,000 for building contractors

How Much Does a Contractor Bond Cost in Missouri?

For Missouri contractor bonds (usually $1k–$25k amounts), premiums tend to range from about 1% to 5% of the bond amount per year, depending on the contractor’s credit and experience.

Many surety companies have a minimum annual premium of $100 for contractor license bonds. This means even a small $1,000 bond might cost $100 (because of minimum fees and processing).

Typical cost examples:

  • A $10,000 bond might cost roughly $100-$150 per year for a contractor with good credit
  • A $25,000 bond might cost in the ballpark of $250 per year

If the contractor’s credit is poor or marginal, the rate could be higher (3% to 10% of the bond amount).

Who Needs a Contractor License Bond in Missouri?

Missouri does not impose a statewide contractor license bond, but many cities and counties require contractors to be bonded before they can work locally.

Requirements vary by location:

  • City of St. Louis: Electrical, plumbing, communications, and concrete contractors need bonds
  • St. Louis County: Electrical, mechanical, and plumbing contractors need bonds
  • Kansas City: No general contractor license bond required
  • Springfield: All licensed contractors need bonds
  • Columbia: Only plumbing contractors need bonds
  • Joplin: All contractors (general, residential, specialty) need bonds

What Other Contractor Bonds Are Required in Missouri?

Performance and payment bonds may be required by law for state-funded public works contracts over a certain amount (e.g., over $50,000). These are project-specific bonds, not license bonds.

Other specialized bonds that may be required in certain cities:

  • Demolition bonds/deposits (for specific demolition projects)
  • Right-of-way bonds (for work affecting public property)
  • Permit bonds (for specific projects)

How Does ContractorNerd’s Application Process Work?

Obtaining a contractor license bond in Missouri is a straightforward process:

  1. Determine which bond you need (contact the local licensing office)
  2. Get quotes from surety bond providers
  3. Complete a simple application with your business details
  4. Undergo underwriting (typically a credit check)
  5. Pay the bond premium
  6. Receive your bond document
  7. File the bond with the appropriate city/county

How Quickly Can I Purchase a Bond?

In many cases, you can get these bonds issued the same day you apply. Providers note that orders received by 4pm are often issued that day and emailed out.

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

Usually, you (the contractor) will be responsible for making sure the city/county receives and approves the bond. The bond must be filed with the appropriate licensing authority as part of your contractor license application or renewal.

How Are Claims Handled on a Missouri Contractor Bond?

If a bonded contractor violates regulations or fails to fulfill a contract (such as performing faulty work or not paying subcontractors), the harmed party can make a claim on the bond. The surety company will investigate valid claims and may pay out up to the bond amount.

Once a claim is paid, the contractor must then repay the surety company. This is because the bond is a guarantee of your work, not insurance.

Frequently Asked Questions (FAQ)

How long are contractor bonds valid?

Contractor license bonds in Missouri typically run on a one-year term. For example, if you purchase a bond on June 1, 2025, it might be valid until June 1, 2026. You would need to renew (pay a new premium) before the expiration to keep it in force.

What happens if I don’t renew my bond?

If you don’t renew in time, the surety sends a cancellation notice to the obligee, and the city could suspend your license. It’s crucial to keep your bond active as long as your license is valid.

Can I get a bond with bad credit?

If your credit is poor or marginal, you may still qualify for a bond, but at a higher rate (3% to 10% of the bond amount). For example, a $10,000 bond might cost $300-$1,000 annually if the contractor has significant credit issues.

What’s the difference between a bond and insurance?

Unlike insurance (which protects the contractor), a license bond protects customers and the public. The bond is a financial guarantee of your compliance with regulations and ethical standards.

Ready to Get Your Missouri Contractor License Bond?

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