Quick Facts:

  • Regulating Agency: West Virginia Division of Labor – Contractor Licensing Board
  • Required Bond Amount: Varies based on bond type (Wage Bond: $1,000-$100,000; Nonresident Tax Bond: $1,000-$50,000)
  • Cost Range: 0.5%-10% of bond amount annually (depending on credit)
  • Required For: New contractors, out-of-state contractors, and certain city-specific projects

What Is a West Virginia Contractor License Bond?

West Virginia doesn’t require a single standard contractor license bond, but instead has targeted bonding requirements based on specific circumstances. These bonds guarantee that contractors will comply with state laws, pay employees properly, and fulfill tax obligations. They function as three-party agreements between the contractor (principal), the state (obligee), and a surety company that backs the contractor’s promise financially.

Who Regulates West Virginia Construction Contractor Licensing?

What Bond Amount Is Required in West Virginia?

West Virginia has two main types of contractor bonds:

  1. Wage Bond (Wage Payment Collection Bond):
    • Amount: 115% of one month’s payroll (minimum $1,000, maximum $100,000)
    • Required for: New construction businesses operating in West Virginia for less than 1 year
  2. Nonresident Contractor Tax Bond:
    • Amount: $1,000-$50,000 (varies based on contract size and taxable components)
    • Required for: Out-of-state contractors performing work in West Virginia

Additionally, some cities have their own requirements. For example, Charleston requires a bond equal to 6% of the contract amount for guaranteeing payment of city B&O taxes.

How Much Does a Contractor Bond Cost in West Virginia?

Bond premiums typically range from 0.5% to 10% of the total bond amount, paid annually. Factors affecting cost include:

  • Credit score: Excellent credit may qualify for rates around 1-3%, while poor credit might result in rates up to 10%
  • Business financial strength: Strong financials can help secure lower rates
  • Bond amount: Higher bond amounts generally mean higher premiums
  • Business history: Established companies may qualify for better rates

For example, a $10,000 bond might cost $50-$300 annually with excellent credit, but $500-$1,000 with poor credit.

Who Needs a Contractor License Bond in West Virginia?

  • New construction contractors: Companies operating in West Virginia for less than one year need a Wage Bond unless they qualify for an exemption
  • Out-of-state contractors: Nonresident contractors need a Tax Bond to guarantee payment of state taxes
  • Contractors working in specific cities: Some municipalities like Charleston require additional bonds for local projects

Exemptions from the Wage Bond requirement include:

  • Companies in business in WV with employees for at least 1 year
  • Companies in business in another state for at least 5 years
  • Companies with no employees in West Virginia
  • Companies building only single-family residences
  • Companies with $100,000+ in available assets

What Other Contractor Bonds Are Required in West Virginia?

Beyond license bonds, contractors may need:

  • Project-specific bonds: Bid bonds, performance bonds, and payment bonds for public projects
  • Local permit bonds: Some cities require bonds for specific permits (excavation, street cuts, etc.)
  • City business license bonds: Where required by municipal codes

How Does ContractorNerd’s Application Process Work?

  1. Complete our simple online application
  2. Receive a quote based on your specific situation and credit
  3. Pay for your bond online
  4. Receive your bond certificate electronically, typically same-day
  5. File the bond with the appropriate agency (WV Division of Labor or State Tax Department)

How Quickly Can I Purchase a Bond?

Most contractor bonds can be issued the same day you apply. Our online quote system provides instant pricing, and once approved, your bond can be delivered electronically within hours.

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

The contractor (you) is responsible for filing the bond with the appropriate authority:

  • Wage Bonds must be filed with the WV Division of Labor on their specific form
  • Nonresident Tax Bonds are filed with the WV State Tax Department
  • City bonds are filed with the respective municipal office (e.g., City Collector)

Our team can guide you on the correct filing procedures and provide the necessary documentation.

How Are Claims Handled on a West Virginia Contractor Bond?

If a contractor fails to meet obligations covered by the bond:

  1. The affected party (employee, customer, or government agency) files a claim with the surety company
  2. The surety investigates the claim’s validity
  3. If valid, the surety pays the claim up to the bond limit
  4. The contractor must reimburse the surety company for any paid claims

For example, if a contractor fails to pay employees, the Division of Labor can claim against the Wage Bond to cover those wages.

Frequently Asked Questions (FAQ)

What if I have bad credit?
Contractors with challenging credit can still obtain bonds, though at higher rates. We work with sureties that specialize in high-risk bonds.

What are the penalties for not having a required bond?
Operating without a required bond can result in license denial, suspension, fines, or stop-work orders.

How do bond renewals work?
Most contractor bonds must be renewed annually. You’ll receive a renewal notice before expiration, and the renewal process is typically simpler than the initial application.

What’s the difference between a bond and insurance?
Insurance protects you from claims, while bonds protect others from your failure to meet obligations. Insurance pays you for covered losses; with bonds, you must reimburse the surety for any claims they pay on your behalf.

Ready to Get Your West Virginia Contractor License Bond?

Apply Now for an instant quote and same-day bond issuance.