Quick Facts:

  • Regulating Agency: Nebraska Department of Labor (NDOL) & Local Municipalities
  • Required Bond Amount: $0-$12,500 (varies by location and trade)
  • Cost Range: $50-$300 annually (depending on credit)
  • Required For: Varies by location – primarily required in Omaha and specific contractors in Lincoln

What Is a Nebraska Contractor License Bond?

A Nebraska contractor license bond is a type of surety bond that serves as a guarantee that contractors will comply with applicable codes, operate ethically, and complete work as agreed. These bonds protect the public and licensing authorities from potential violations by contractors. Unlike some states with uniform statewide bonding requirements, Nebraska’s contractor bonding system operates primarily at the local (city) level.

Who Regulates Nebraska Construction Contractor Licensing?

Nebraska does not have a statewide contractor licensing program. Instead, the Nebraska Department of Labor (NDOL) administers the Contractor Registration Act, which requires all contractors and subcontractors doing business in Nebraska to register with the state. This registration does not include a bond requirement at the state level.

Major cities such as Omaha and Lincoln have their own licensing departments that handle local contractor licensing and bonding requirements:

  • Omaha: Permits and Inspections Division of the Omaha Planning Department
  • Lincoln: Building & Safety Department

Visit the Nebraska Department of Labor website for state registration information.

What Bond Amount Is Required in Nebraska?

Bond amounts vary significantly depending on location and contractor type:

State Level:

  • No general statewide contractor bond requirement
  • Farm Labor Contractors: $5,000 bond
  • Non-Resident (Out-of-State) Contractors: 10-15% of contract value for projects over $10,000

City of Omaha:

  • Building Contractors (all classes): $10,000
  • Electrical Contractors: $12,500
  • Plumbing, HVAC, and most specialty trades: $10,000
  • Oil Tank Installers: $5,000
  • Excavation Contractors: $20,000

City of Lincoln:

  • Limited bond requirements for specific activities:
  • Sign, Street Use, and Excavation Contractors: $5,000
  • House Moving Contractors: $25,000
  • General building, electrical, plumbing, and HVAC contractors do not require bonds in Lincoln

Other Nebraska Municipalities:

  • Aurora: $5,000
  • La Vista: $5,000
  • Gering: $2,000
  • Scottsbluff: $1,000 (right-of-way work only)
  • South Sioux City: $10,000 for electricians, plumbers, and HVAC; $2,000 for sign contractors
  • Falls City: $2,000 for plumbers and electricians

How Much Does a Contractor Bond Cost in Nebraska?

The premium cost for Nebraska contractor license bonds typically ranges from 1% to 3% of the bond amount for contractors with good credit. For example:

  • A $10,000 bond (Omaha standard) typically costs $100-$300 annually
  • Smaller bonds ($2,000-$5,000) may cost as little as $50-$150 annually
  • Rates are determined primarily by the contractor’s credit score and business history

Factors affecting bond costs include:

  • Personal credit score (excellent credit can qualify for rates around 1% or lower)
  • Business financial strength and experience
  • Claims history (previous bond claims can significantly increase rates)
  • Contractors with poor credit may face higher rates of 5-10%

Who Needs a Contractor License Bond in Nebraska?

Bond requirements vary by location and trade:

Statewide:

  • Farm Labor Contractors
  • Non-Resident (Out-of-State) Contractors working on projects over $10,000

City of Omaha:

  • General Building Contractors (Classes A-E)
  • Electrical Contractors
  • Plumbing Contractors
  • HVAC/Mechanical Contractors
  • Steamfitters
  • Lawn Sprinkler Installers
  • Water Conditioning Contractors
  • LPG (Propane) Tank Contractors
  • Oil Tank Installers
  • Excavation Contractors

City of Lincoln:

  • Sign Contractors
  • Street Use Contractors (working in right-of-way)
  • Excavation Contractors (digging in public right-of-way)
  • House Moving Contractors

Other municipalities: Requirements vary by city – always check with the local building department or city clerk before starting work in a new jurisdiction.

What Other Contractor Bonds Are Required in Nebraska?

Beyond license bonds, Nebraska contractors may need:

  • Project-Specific Permit Bonds: Some cities require specific bonds for permits involving public property or rights-of-way
  • Performance and Payment Bonds: Required for public works projects (state law mandates these for contractors working on public buildings, roads, or other public construction)
  • Right-of-Way Bonds: Required in some cities when work affects city streets, sidewalks, or other public property

Additionally, most jurisdictions require contractors to carry:

  • General liability insurance (typically $500,000-$1,000,000 minimum)
  • Workers’ compensation insurance (if the contractor has employees)

How Does ContractorNerd’s Application Process Work?

Our streamlined application process makes obtaining your Nebraska contractor bond quick and simple:

  1. Complete our online application with basic information about your business
  2. Receive your free, no-obligation quote
  3. Make your payment securely online
  4. Receive your bond documentation instantly (for most bond types)
  5. Submit your bond to the appropriate licensing authority

How Quickly Can I Purchase a Bond?

Most Nebraska contractor bonds can be issued instantly after application and payment. Our online system allows you to:

  • Apply and get a quote in minutes
  • Receive immediate approval for most applicants
  • Download your bond documents instantly
  • Have your bond in hand the same day you apply

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

After purchasing your bond, you (the contractor) are responsible for filing it with the appropriate authority. The filing process varies by location:

  • Omaha: Accepts electronic copies of bonds via email
  • Lincoln: Requires the original bond with a raised seal to be delivered in paper form
  • Other municipalities: Check local requirements for submission procedures

Our team will provide you with all necessary documentation and filing instructions specific to your jurisdiction.

How Are Claims Handled on a Nebraska Contractor Bond?

If a contractor violates the terms of their license (such as breaking building codes, abandoning projects, or committing fraud), a claim may be filed against their bond. The claims process typically works as follows:

  1. The harmed party (city or consumer) files a claim with the surety company
  2. The surety investigates the claim to determine validity
  3. If valid, the surety pays the claim up to the bond amount
  4. The contractor must reimburse the surety company for any claims paid

Contractors should understand that the bond is not insurance – you remain financially responsible for all valid claims paid by the surety.

Frequently Asked Questions (FAQ)

What if I have bad credit? Even contractors with poor credit can obtain Nebraska bonds. While rates may be higher (5-10% of the bond amount), many surety companies offer programs for high-risk applicants. We work with multiple sureties to find solutions regardless of credit history.

What are the penalties for working without a required bond? Operating without a required bond can result in:

  • License suspension or revocation
  • Inability to obtain building permits
  • Stop work orders on active projects
  • Fines and penalties
  • Potential legal liability

How do bond renewals work? Most contractor bonds in Nebraska are issued for one year and must be renewed annually. The renewal process is simple:

  • You’ll receive a renewal notice before your bond expires
  • Pay the premium to extend your bond for another term
  • A continuation certificate is issued to maintain coverage

What’s the difference between a bond and insurance? While both provide protection, they serve different purposes:

  • A bond primarily protects the public and licensing authority from contractor misconduct
  • Insurance (liability, workers’ comp) protects the contractor from claims for property damage, injuries, or accidents
  • Bonds require reimbursement from the contractor for claims paid; insurance typically does not

Ready to Get Your Nebraska Contractor License Bond?

Apply Now for a fast, free quote on your Nebraska contractor license bond. Our experts are ready to help you navigate the specific requirements for your location and trade.