Overview of North Dakota Contractor License Bond Requirements

When you apply for a contractor license in North Dakota, you may be required to obtain a contractor license bond.

On a state level, applicants for a water well contractor license from the ND Board of Water Well Contractors need to obtain a $15,000 “certified water well driller bond”.

In addition to that, two cities in the state require contractors to obtain a local license.

The city of Grand Forks requires building, mechanical, plumbing, excavator or sign hanger contractor to post a $5,000 bond. Moving contractors in the city must post a $1,000 bond.

The city of Jamestown requires building, master electrician, master plumber, gas fitter, and house mover license applicants to post a $10,000 bond. Excavating, patching and curb cut contractors must post a $25,000 bond.

What is the purpose of the contractor license bond?

The function of these bonds is twofold. One the one hand, they serve as a guarantee that the bonded contractor will comply with state and city laws. On the other hand, they also serve as protection and guarantee compensation if a contractor violates their legal obligations.

If this happens, a claim can be filed against the bond, and the surety that backs it will extend compensation. Such compensation can be as high as the full penal sum of the bond.

If you have more questions about how bonds function, and why you need one, see our detailed ‘What is a surety bond' guide!

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

To find out more about the cost of your North Dakota contractor license bond and how to apply, see the sections below!

For any additional questions, call us at (866)-450-3412 anytime!

How Much Does the North Dakota Contractor License Bond Cost?

The cost of your bond, also known as your bond premium, is equal to a fraction of the amount you need to get bonded for. The premium is determined by the surety on the basis of several financial factors.

Factors that determine the bond cost

An applicant's personal credit score has the strongest influence on their bond premium. The higher your score, the cheaper it is for you to get bonded. Typically, applicants with high scores can expect to get some of the lowest rates on their bonds, somewhere between .75% and 5% of its total amount.

Apart from credit score, the surety company may also want to review your:

  • Personal and business financial statements
  • Fixed and liquid assets
  • Industry experience

For an overview of the various bond premium ranges, see the table below!

North Dakota Contractor License Bond Cost Based on Credit Score
License type Bond Amount Credit Score
Above 700 650-699 600-649 Below 599
North Dakota
Water well driller $15,000 $112-$225 $150-$375 $375-$750 $750-$1,125
City of Grand Forks
Moving contractor $1,000 $100 $100 $100 $100
Building, mechanical, plumbing, excavator, and sign hanger contractor $5,000 $100 $100-125 $125-$250 $250-$375
City of Jamestown
Building contractor, master electrician, master plumber, gas fitter, and house mover $10,000 $100-$150 $100-$300 $250-$500 $500-$750
Excavating, patching and curb cut contractor $25,000 $188-$375 $250-$750 $625-$1,250 $1,250-$1,875

Can I apply for a bond if I have bad credit?

Yes, applicants with low credit can also get bonded. Such applicants will usually be offered higher rates than those with better credit. This is because sureties perceive a greater likelihood for claims when issuing bonds to such applicants.

Yet, even if you are offered a high rate the first time around, you can improve your premium by raising your credit score. The more you increase your score, the lower your premium will be over time.

To learn more about getting bonded with bad credit, see our Bad Credit Program page!

How Do Bond Claims Work?

When a contractor obtains a bond they enter into an agreement to comply with various laws. For example, the license bond for water well contractors specifically refers to various chapters of the North Dakota Century Code.

If a contractor violates their legal obligations, individual people, as well as state authorities who suffer losses or damages, may file a claim against the bond. The surety that backs the bond will then investigate the claim and extend compensation for a maximum of the full bond amount.

Because of how bonds work, the contractor has to reimburse the surety if it pays out compensation. Given the high amounts on some of these bonds, this makes dealing with a claim undesirable and difficult.

Get Your Contractor License Bond!

To request a free and exact quote on your bond, complete our simple application form. We'll get in touch with you shortly, and provide you with further information about completing the bonding process.

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

For any questions about the bonding requirements for contractors in North Dakota, call us at (866)-450-3412!

Further Reading


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.