Quick Facts:

  • Regulating Agency: North Dakota Secretary of State (for state licensing)
  • Required Bond Amount: No state-level bond for general contractors; $15,000 for water well contractors
  • Cost Range: $100-$450 annually (depending on credit)
  • Required For: Water well contractors at state level; various contractors at city level

What Is a North Dakota Contractor License Bond?

A North Dakota contractor license bond is a surety bond that guarantees a contractor will comply with applicable laws, regulations, and building codes. It protects consumers, project owners, and municipalities from financial losses resulting from a contractor’s failure to complete work properly or comply with regulations.

Who Regulates North Dakota Construction Contractor Licensing?

  • The North Dakota Secretary of State oversees general contractor licensing at the state level
  • The North Dakota Board of Water Well Contractors (under the State Water Commission) regulates water well contractors
  • Individual cities have their own licensing departments that regulate local contractor licenses
  • Official site: North Dakota Secretary of State – Contractors

What Bond Amount Is Required in North Dakota?

  • State-level requirements:
    • General contractors: No state bond required
    • Water well contractors: $15,000 bond
  • City-level requirements:
    • Fargo: $100,000 (excavators), $25,000 (sidewalk builders)
    • Bismarck: $25,000 (excavation), $5,000 (concrete contractors), $5,000 (house movers)
    • Grand Forks: $5,000 (most contractors), $1,000 (house movers)
    • Minot: $15,000 (demolition permits), $10,000 (house moving permits)
    • West Fargo: $5,000 (most contractors)
    • Jamestown: $10,000 (most contractors), $25,000 (excavation contractors)

How Much Does a Contractor Bond Cost in North Dakota?

  • Typically 1-3% of the bond amount annually for contractors with good credit
  • For example:
    • $5,000 bond: approximately $100/year with good credit
    • $15,000 bond: approximately $150-$450/year
    • $100,000 bond: approximately $1,000-$3,000/year
  • Factors impacting cost:
    • Credit score
    • Business financials
    • Years of experience
    • Previous claims history
  • Some sureties have minimum premiums (often around $100) regardless of bond size

Who Needs a Contractor License Bond in North Dakota?

  • State level: Only water well contractors (and related specialties like pump installers)
  • City level (varies by municipality):
    • Fargo: Excavators, sidewalk builders
    • Bismarck: Excavation contractors, concrete contractors, house movers
    • Grand Forks: General building contractors, mechanical contractors, plumbing contractors, excavators, sign hangers, house movers
    • Minot: Demolition contractors (per permit), house movers (per permit)
    • West Fargo: General contractors, roofers, plumbers, electricians, heating/gas installers, pavers/concrete contractors

What Other Contractor Bonds Are Required in North Dakota?

  • Permit bonds (required for specific projects rather than licenses):
    • Demolition permit bonds
    • House/building moving permit bonds
    • Excavation/right-of-way work bonds
  • Insurance requirements (complementing bonds):
    • General liability insurance
    • Workers’ compensation insurance (if you have employees)

How Does ContractorNerd’s Application Process Work?

  1. Complete our simple online application form
  2. Receive instant quotes from multiple surety providers
  3. Select your preferred rate and provider
  4. Sign documents electronically
  5. Receive your bond certificate (typically same day)

How Quickly Can I Purchase a Bond?

With our streamlined process, most contractors can obtain their North Dakota bond the same day they apply. Once approved, you’ll receive your bond certificate immediately, which you can submit to the appropriate licensing authority.

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

After purchasing your bond, you (the contractor) are responsible for filing it with the appropriate authority:

  • Water well contractor bonds must be filed with the North Dakota Board of Water Well Contractors
  • Municipal bonds must be filed with the respective city department (building safety, engineering, etc.)
  • Our partner surety companies can provide guidance on proper filing procedures

How Are Claims Handled on a North Dakota Contractor Bond?

  • If a contractor violates regulations or fails to complete work properly, an affected party can file a claim
  • The claim is investigated by the surety company
  • If validated, the surety company pays the claim up to the bond amount
  • The contractor must reimburse the surety company for any claims paid (these are not insurance policies)
  • Multiple claims or unpaid claims can affect your ability to obtain bonds in the future

Frequently Asked Questions (FAQ)

Can I get a bond with bad credit? Yes, most contractors can qualify for a bond regardless of credit history. However, contractors with poor credit may pay higher premiums, possibly 3-5% of the bond amount instead of the standard 1-3%.

What happens if I work without a required bond? Working without a required bond can result in:

  • License suspension or revocation
  • Inability to pull permits
  • Fines and penalties
  • Potential legal liability
  • Damage to your business reputation

How does the bond renewal process work? Most contractor bonds in North Dakota are issued for one-year terms. Your surety provider will send a renewal notice before expiration. Pay the renewal premium to extend your bond coverage for another year. Continuous bonds remain in effect until canceled but still require annual premium payments.

What’s the difference between a bond and insurance?

  • Bond: Protects your customers and the government from your non-compliance or failure to meet obligations
  • Insurance: Protects you and your business from losses and liabilities

Ready to Get Your North Dakota Contractor License Bond?

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